Transforming Renewable Energy into Hydrocarbons
RENEWABLE LOW CARBON HYDROCARBONS WORK COMMERCIALLY BECAUSE CARBON
REDUCTION IN FUELS CAN BE VALUED AND MONETIZED
Sustainable and Profitable For Our Customers...
Breakdown of Contracted Fuel Price - Illustrative Example
($/HC gal)
We share the carbon value to make
products more affordable for customers,
while being profitable for Gevo
-Low-carbon Fuel Standard (LCFS)
-Renewable Fuels Standard (RFS)
-European Renewable Energy Sources (EU RED)
-Tax Credits
-Other
Base Contract Price Customer Share of
Carbon Value(1)
Net Price for
Customer
Cost of fossil-
based fuel
...And Sustainable and Profitable for Gevo
Breakdown of Contracted Fuel Price - Illustrative Example
($/HC gal)
Net Cash Margin
Fixed O&M
Variable O&M
Premium for Renewable
Process Energy
Feedstock
Total Production
Cost
Expected
to be
+20% IRR**
(Levered Basis)
וויו
Base Contract Price
Gevo Share of
Carbon Value(1)
Total Revenue
to Gevo
(1)
Applicable environmental benefits and amount of sharing between Gevo and customer varies by contract; includes Low Carbon Fuel Standard (LCFS) credits, Blender's Tax Credit, EU RED II credits, RINS and Advanced Fuels Credit.
**Projected project-level internal rate of return based on a project financing structure and assumptions around offtake contract pricing, carbon value, capital costs, and operating costs, all of which are subject to revisions
gevo
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