Gevo Cuts 40% of Staff After $1.46B DOE Loan Fails

Gevo's $1.46 billion Department of Energy financing collapsed after the company missed a Dec. 31 closing deadline tied to the agency's fiscal calendar. The failure forced a 40% workforce reduction and a pause on the company's flagship sustainable aviation fuel plant. The stock dropped 12% after hours.

The Lake Preston, South Dakota, ATJ-30 project was the centerpiece of Gevo's growth strategy. CEO Patrick Gruber said the company is pulling back to its renewable chemicals plant in Luverne, Minnesota.

Gevo ended the fourth quarter with $282 million in cash and equivalents. That supports the Luverne operation and a smaller development team. The SAF plant requires billions in construction costs the balance sheet cannot cover alone.

Gruber said the company is looking for private debt or equity to restart ATJ-30. He gave no timeline for the Lake Preston project.