The company is aiming to reduce and eliminate the fossil footprint caused by running the Luverne facility. These biogas contracts, in conjunction with wind power, should enable any biofuel produced at the Luverne facility to have a lower carbon intensity score as well as an increased value.
Currently, the company has a letter of commitment from a lender in the amount of $20 million for financing the Renewable Natural Gas (RNG) project at one of the three dairies. In addition, the Company also has a verbal commitment from the same lender to finance the RNG projects at the other two dairies. The financing includes capital for the anaerobic digesters, the biogas collection and upgrading system, as well as the utility interconnection system.
"These three dairy farms represent what I envisioned as Phase 1 of the biogas cluster consisting of 8-10 total farms once the system is fully built out," said Patrick R. Gruber, chief executive officer of Gevo. "We aim to change mindsets by demonstrating you can change waste from being a pollution problem to a renewable energy solution in the liquid fuels market."