Net-Zero 1 - Community Event - Lake Preston - August 30, 2021 - Gevo
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Net-Zero 1 – Community Event – Lake Preston August 30, 2021
WELCOME
2
WELCOME & INTRODUCTIONS
A-1 DEVELOPMENT SOLUTIONS JUHL ENERGY
• Ty Eschenbaum, Partner • Clay Norrbom, Juhl Energy
• Aaron Thibert, Juhl Energy
GEVO
• Patrick Gruber, CEO
• Paul Bloom, Chief Carbon Officer
• Tony Wells, Site-Leader & General Manager
• Andy Carlson, Plant Engineer
• Natalie Mason, Commercial Area Leader
• Daniel Koch, Operations Area Lead
• Kimberly Bowron, Chief People Officer
• Heather Manuel, VP of Investor Relations & Communications
• Karen O’Brien, Sustainability Engineering Manager
3
FORWARD LOOKING STATEMENTS
Any statements in this presentation about our future expectations, plans, outlook and prospects, and other statements
containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions,
constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those indicated by such forward-looking statements as a result of various important
factors, including risks relating to: our Net-Zero 1 project and other projects; the success of our sales and production
efforts in support of the commercialization of our products; our growth plans and strategies; our technologies; the sizes
of markets for our products; the benefits and characteristics of our products, including CI score and reductions in
greenhouse gas emissions; our ability to obtain and maintain certifications related to our products; our ability to enter
into additional contracts to sell our products; the status of our contract discussions and negotiations; memoranda of
understanding, discussions and negotiations relating to potential projects; our ability to raise funds to continue
operations or fund growth projects; our projected revenues or sales; our ability to perform under current or future
contracts; our ability to become profitable; our projections of internal rates of return on investments for our projects; and
other factors discussed in the “Risk Factors” of our most recent Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 and in other filings that we periodically make with the SEC. In addition, the forward-looking
statements included in this investor presentation represent our views as of the date of this investor presentation.
Important factors could cause our actual results to differ materially from those indicated or implied by forward-looking
statements, and as such we anticipate that subsequent events and developments will cause our views to change.
However, while we may elect to update these forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views
as of any date subsequent to the date of this investor presentation
4
GEVO – Framing the Problem
GAINING PERSPECTIVE
It’s the burning of fossil carbon to make
electricity, to heat buildings and
production processes, and for
transportation that generates the vast
majority of GHG emissions
Electricity demand is going to go up:
• 30% of people in the world don’t have
access to electricity
• Demand in transportation sector will
increase
Source: OurWorldinData.org
6
LIQUID FUELS ARE IN OUR FUTURE…THE QUESTION IS HOW MUCH?
Current EIA Projection of Hypothetical Projection Assuming
Transportation sector consumption (by fuel) Significant Penetration Of Electrification*
quadrillion British thermal units quadrillion British thermal units
30 2019 2019
30
history projections history projections
25 25
20 20
motor gasoline
15 motor gasoline 15
distillate fuel oil
distillate fuel oil
10 10 jet fuel
jet fuel
electricity
5 5
electricity
other
0 other 0
2010 2020 2030 2040 2050 2010 2020 2030 2040 2050
Source: U.S. Energy Information Administration, Annual Energy Outlook 2020, Reference Case
*Hypothetical case based on EIA numbers and data from Rhodium Group Study 2020. The penetration rate of electrification is highly uncertain. 7
ENORMOUS TOTAL ADDRESSABLE MARKET
Total Market 80%+ EV Scenario (Low Estimate) Single Net-Zero Plant Capacity
• Gevo expects to be able to change the mix of
jet fuel and gasoline production with a catalyst
change
• Jet fuel is uniquely reliant on low-carbon
replacements to achieve net-zero (cannot be
replaced by EVs)
• Increasing value for Gevo’s isooctane for both
low-carbon attributes, and as a high-quality
blendstock to upgrade to premium gasoline
(vehicle get better mileage, less smog, etc.)
888 Billion 245 Billion 46 Million
gallons per year gallons per year(3)
gallons per year(1)
2050E Global Liquid Fuels Demand Required in 80% EV Planned Capacity of One Gevo Net-Zero plant
2030E Global Liquid Fuels Demand
Scenario(2) Represents 0.02% of Market in 80%+ EV Scenario(2)
(1) Source: BP Energy Outlook 2020. Reflects Business-as-usual scenario.
(2) Based on BP Energy Outlook 2020. Net Zero scenario assumes that global carbon emissions fall by over 95% by 2050 broadly in line with a range of scenarios limiting temperature rise to 1.5 degrees Celsius. Net Zero
assumes EV adoption rate of 80%+ and renewable energy share of ~59% by 2050E. Based on Project Net-Zero 1 planned capacity. 8
BURNING OF FOSSIL FUEL RELEASES FOSSIL CARBON
Liquid Hydrocarbons are a Terrific Energy Carrier; Infrastructure Already Exists
Isooctane (gasoline)
Burning to release energy!
Carbon Dioxide
Water
Jet Fuels
9
MOVING BEYOND NET-ZERO: SEQUESTRATION OF CARBON
Inherent
Energy of Concentrating
CO2 and Putting the Energy Process Energy
Back into the Fuels
(Reverse of Burning)
Isooctane (gasoline)
Requires renewable carbon and
renewable energy to achieve Net-Zero
Carbon Dioxide
Water
To Move Beyond Net-Zero GHG’s
Jet Fuels
Capture of CO2 Capture of CO2 Capture of CO2
during production from production during energy
of raw materials production
10THINKING ABOUT CARS: WHAT IF WE COULD ELIMINATE THE FUEL EMISSIONS OF CARS
ON A FULL LIFE CYCLE BASIS?
Lithium Battery Other Manufacturing Fuel Related Emissions
Source: ICCT, “Effects of battery manufacturing on electric vehicle life-cycle greenhouse gas emissions”, Feb 2018
11IF WE USE A NET-ZERO FUEL, IT’S CONCEIVABLE!
Lithium Battery Other Manufacturing Fuel Related Emissions
Source: Adapted from ICCT, “Effects of battery manufacturing on electric vehicle life-cycle greenhouse gas emissions”,
Feb 2018 by eliminating the tailpipe GHG emissions to make a point. 12GEVO – WHAT WE DO & OUR VISION
CHANGING WHAT IS POSSIBLE: CREATING A LOW-CARBON FUTURE
• We intend to Transform renewable
energy sources into a “drop in” fungible
TRANSFORM RENEWABLE
hydrocarbons for fuels and chemicals
ENERGY INTO LIQUIDS (liquid hydrocarbons, such as jet fuel and
gasoline, as well as ingredients for plastics,
rubber, specialty chemicals products, and food
chain products)
• We intend to manage carbon and
sustainability across the whole business
ENABLES DECARBONIZATION OF FOOD, system
FUELS, CHEMICALS AND MATERIALS
• We are developers and investors in biogas,
wind electricity, in addition to hydrocarbons
24
14HIGH-VALUE PROTEIN, DROP-IN GASOLINE, JET FUEL, AND OTHER HYDROCARBONS WITH
NET-ZERO GHG EMISSIONS WHEN BURNED
High-Value Protein (Pet Nutrition/Aquaculture )(1) & Oil
Raw Materials Jet Fuel
§ Proven technology in
production and product
use
§ The value of carbon can now
be priced
Renewable Premium
Gasoline (Isooctane)(2)
§ We believe we have customer
demand to require multiple
large plants
§ We are using a Take-or-Pay
Oxygenated Blendstocks for
Gasoline(Isobutanol)
contract approach,
Most carbohydrate-based raw successfully, with customers
material can work
Diesel (Future Intent)
(1) Added to end products
(2) Certain regulatory approvals required in some jurisdictions.
15CREATING A LOW-CARBON BUSINESS SYSTEM
GEVO’S BUSINESS SYSTEMS, FROM RAW MATERIALS TO RENEWABLE FUELS, EXEMPLIFIES THE CIRCULAR ECONOMY IN ACTION
Fossil GHG
Emissions Driving the Life-cycle GHG’s Emissions of Jet,
100g/MJ
CO2 Emissions Gasoline, and Diesel to Net Zero
Re
n
ew
Re Fe ab
ne e d le
w s t Ca
ab oc rb
k on
le
En
er
gy
0g/MJ
CO2 Emissions
Soil Carbon Capture has Potential to Drive
to Negative Life-Cycle GHG Emissions
16DEMAND IS INCREASING: WE BETTER THINK BIGGER, SOONER
Market Traction
46 MMGPY 54 MMGPY ~900 MMGPY
Planned Capacity of Total Volumes in
Total Volumes
Single Gevo Contract
Currently
Renewable Fuels Development
Contracted
Plant(4) Pipeline
~$1.6 billion >$20 billion
Take-or-Pay offtake Take-or-Pay Offtake Other Off-Takes(3)
(negotiations and
(signed)(1) discussions)(2)
Gasoline Global
City of Seattle
Companies
Jet Fuel Global
Companies
(1) The estimate is based on certain revenue assumptions in the contracts, including the value of certain environmental credits and the sales price of the fuel. This estimate represents the revenue over the entire term of the contracts
(2) Calculated as in (1) and represents an estimate of potential outcomes depending on discussions and negotiations. There can be no guarantee that any of these contracts get executed and close. They are being discussed and/or negotiated
(3) Includes distributors and end customers 17
(4) Based on Project Net-Zero 1KEY FINANCIAL INFORMATION
Cash, Cash Equivalents, Restricted Cash,
~$567 million (6/30/2021)
and Marketable Securities
Debt ~$67 million (6/30/21)
Common Shares Outstanding ~198 million (6/30/2021)
18PROJECT DESCRIPTION & STATUS Tony Wells, Site-Leader & General Manager Andy Carlson, Net-Zero Operations
PROJECT NET-ZERO 1 SUMMARY
ENGINEERING WORK IS ON TRACK---WE ARE CONTINUING WORKING THROUGH OPTIMIZATIONS
Site – Key Milestones Overview
§ Optioned Lake Preston site; site is ~240 acres § Fuel products are expected to achieve a net-zero GHG footprint
§ Conditional Use Permits approved for site and wind across the whole life cycle(1)
farm: 2H 2021
§ Environmental permitting on schedule: 1H 2022 § Fuels produced from abundant, sustainable corn feedstock, while
producing high-value protein products and corn oil
§ Planned construction start: 1H 2022
§ Planned Start-Up: 1H 2024 § Waste-water treatment and on-site biogas production is currently
planned. On-site biogas production is expected to meet the thermal
demand for the plant.
Financing, Commercial, Engineering &
Construction § A separate but related wind power project is being developed to
meet the majority of the NZ1 electricity demand. This wind project
§ Development costs & construction equity fully funded would be “wired” directly to NZ1
by Gevo
§ Project debt financing expected close: 1H 2022 § Green Hydrogen is expected to be made from water and renewable
§ Capacity sold-out using take-or-pay contracts electricity
§ Engineering, Procurement & Construction (EPC) firm
engaged in front-end engineering and design § Optionality to bring additional RNG
§ Project delivery contract (EPC) in negotiation
(1) Based on full cradle-to-cradle analysis using Argonne National Laboratories GREET model. Includes agricultural practices, energy sources, supply chain, and end fate of product.
20LAKE PRESTON SITE Feed Loading Grain Receiving
Fuel Loading
• Infrastructure
• Roads
• Water
• Wastewater
• Natural Gas
• Electricity
Truck Entrance
Process Isobutanol, Hydrocarbon (Jet
Fuel & Gasoline), Hydrogen
21ENVIRONMENTAL, HEALTH, AND SAFETY (EH&S)
• Environmental Permitting
• Air
• Wastewater
• Other
• Health
• Acute
• Chronic
• Safety
• Process Safety Management (PSM)
• Personnel
22COMMERCIAL IMPACT Natalie Mason, Commercial Area Leader
SCOPE OF NET-ZERO 1 – PRODUCT OVERVIEW
An “Off-the-Grid” Renewable Protein, Oil, Chemical and Hydrocarbon Plant** +340 Million lbs of Value-added
Nutritional Protein Products
~30 Million lbs of Vegetable oil
Production
Processes
~44 Million lbs of IBA
Residual
Starch
Low Carbon Corn Slurry
~30 Million Bu Protein & Oil Chemical/Hydrocarbon ~46 Million Gallons of
(1.68B lbs) Production Hydrocarbons (Jet and
Gasoline)
Waste-Water Biogas
Water Electricity Hydrogen
Biogas
On-Site Off-Site Wind
On-Site Renewable
Electricity Electricity
Water Treatment/Biogas Production
Hydrogen
Production
Production Production
Energy, Utilities,
Water Processes
*Currently Planned for Lake Preston, volumes of inputs and products are subject to change. **The plant would be connected to the grid to supply energy to the grids, and also to take energy from the grids if
needed. The plant is being designed to be self sufficient for its energy between what can be generated on-site and from the planned off-site wind farm. Gevo may also bring RNG to the plant from its RNG 24
project.CORN DEMAND
• ~30 million bushels of corn required to
meet off-take obligations
• 15 day of corn storage will be part of the
original site plan: currently exploring
potential ground pile opportunities during
harvest each year
• Gevo wants to buy bushels directly from
farmers and commercial elevators within
40-mile radius
25RENEWABLE FUEL PRODUCTS
Renewable Gasoline Sustainable Aviation Fuel (SAF)
• A drop-in, high-octane, gasoline blendstock • Lower freezing point than petro-jet
• Meets existing gasoline specifications • Higher energy density than petro-jet
• No changes need to be made to pipelines, storage, • Very low sulfur means lower sulphur oxides (SOx)
blending and engines • SAF energy density is higher than petro-jet with the
• Higher energy with the potential for more miles per gallon potential for more miles per gallon of fuel, or more
• Less corrosivity for less wear and tear on certain types of weight might be carried by a plane.
engines
26OPERATIONS/PROCESS Daniel Koch, IBA Area Leader
PROCESS FLOW AT NET-ZERO 1 – TO ENSURE CARBON NEUTRAL OPERATIONS
28EMPLOYMENT & HIRING Kimberly Bowron, Chief People Officer
EMPLOYMENT & HIRING
At Gevo, we are committed to
creating the culture that allows
people to not only do their best
work but to also secure a green
future for the world
The NZ1 construction is expected to employ
~1000 people
The permanent regional employment impact is
estimate to be over 900 jobs
(~70 Full Time Employees on NZ1 site)
30GREAT JOBS AND GREAT BENEFITS
• Maintenance Techs
• Purchasing
• Quality and Lab Services
• Plant Operators and Shift Leaders
• Corn Processing
• Human Resources and Accounting 24/7 Operation
• Engineers
• Logistics and Purchasing 70 Full Time Employees
Overnight shift available
31WIND PROJECT Clay Norrbom, Juhl Energy
JUHL ENERGY – WIND PROJECT
PROJECT SPECIFICS – “Kingsbury County Wind Fuel”
• Up to 60 MW Electrical Capacity
• Will be directly interconnected to feed the NZ1 Plant’s electrical needs
• Will utilize up to twenty wind turbines, such as the GE 3.03 MW
• 81 meter or 98 meter hub height (based on FAA and siting considerations)
• 140 meter rotor diameter
• Capitalizes on strong locally available wind resource
• Average annual wind speed estimated at 8.3 meters/second (18.6 miles/hour)
• Annual Average Energy Production of approx. 240,000 MWH/year
• Turbine siting will incorporate good neighbor principles to reduce impacts on neighbors
• Juhl and Gevo successfully collaborated together to build wind turbines near Gevo’s Luverne, MN facility
• Juhl has a long history of developing smaller and community-based wind projects like this project
33Purpose of Gevo’s outreach
FOR ADDITIONAL INFORMATION ABOUT GEVO
These short videos explain more about Gevo, our process,
business system, and how we think about sustainability
NET ZERO 1 (1:52): https://vimeo.com/540736374
PAST
Gevo – Solving Energy (2:00): https://vimeo.com/531083659
Working Toward Zero Carbon Footprint (2:46): https://vimeo.com/440219829
Food and Fuel (1:19): https://vimeo.com/440220247
Where we are so far (1:21): https://vimeo.com/416215170
Our Process (1:01): https://vimeo.com/416215010
Replacing Fossil Based Carbon (2:07): https://vimeo.com/396232536
Farming Carbon & Soil Conservation (1:54): https://vimeo.com/379773448
FUTURE
Sustainable Jet Fuel (1:59): https://vimeo.com/379896308
Partners with Mother Nature (1:49): https://vimeo.com/416215170
Going After the Whole Gallon(0:50): https://vimeo.com/451342705
We are Recycling Carbon (0:45): https://vimeo.com/451341985
Our Circular Economy (0:48): https://vimeo.com/451341499
www.gevo.com
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