Gevo Announces Sell Out of Substantially All its 2026 Section 45Z Tax Credits

Over $30 million in cash has been received from credit sales, with the remaining cash expected over the next six months.

Rhea-AI Summary

Gevo (GEVO) has sold substantially all its 2026 Section 45Z tax credits, totaling $70 million worth of credits. These credits came from its ethanol and renewable natural gas facilities. Gevo received over $30 million in cash through September 30 and expects the remainder over the next six months.

The sales include $50 million worth of credits sold September 30 to a non-financial, publicly traded company and $20 million previously sold to Quill Financial. Gevo forecasts over $77 million worth of credits for 2027, including an expected additional $7 to $10 million from North Dakota production improvements. The work remains on track for completion by year-end 2026 and is expected to increase production capacity and associated carbon capture by 10–15%.

5 points · 1 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point$50 million worth of credits sold September 30 to a non-financial, publicly traded company. 15% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Over $77 million worth of credits forecast for 2027, including an expected additional $7 to $10 million.
• Minor point$20 million worth of credits previously sold to Quill Financial.
• Minor point. Forward-looking: it has not happened yet and may not happen.Over $30 million in cash received through September 30; remaining cash expected over the next six months.
• Minor point. Forward-looking: it has not happened yet and may not happen.North Dakota production improvements target a 10–15% increase in production capacity and associated carbon capture.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Additional 2027 credits depend on anticipated completion of North Dakota production improvements, targeted for year-end 2026.

Key Figures

2026 Section 45Z credits sold: $70 million Cash received: Over $30 million September 30 credit sale: $50 million +4 more

2026 Section 45Z credits sold

$70 million

Sales covered substantially all credits generated in 2026

Cash received

Over $30 million

Received through September 30; remaining cash expected over the next six months

September 30 credit sale

$50 million

Sold to a non-financial, publicly traded company

Earlier credit sale

$20 million

Previously sold to Quill Financial, Inc.

Additional 2027 credits

$7 to $10 million

Expected from Gevo North Dakota debottlenecking

Production capacity and carbon capture increase

10-15%

Expected effect of Gevo North Dakota debottlenecking

Debottlenecking completion

By the end of 2026

Gevo North Dakota project remains on track

Historical Context

2 past events · Latest: Aug 06

2 events

1. Aug 06

   Earnings report

   24h Move

   +9.0%

   Raised 2026 EBITDA outlook and targeted more than $70 million from 45Z credit monetization.

2. Sep 14

   Project update

   24h Move

   +1.9%

   Reported progress on North Dakota debottlenecking, with a 10–15% output increase expected.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

renewable natural gas (rng), sustainable aviation fuel (saf), carbon capture and storage (ccs), alcohol-to-jet (atj)

4 terms

renewable natural gas (rng) technical

"ethanol and renewable natural gas (RNG) facilities"

Renewable natural gas (RNG) is a fuel made by capturing methane released from organic waste—like landfills, farms, or wastewater—and cleaning it so it can replace conventional natural gas. Think of it as recycled gas: it turns waste into a usable energy product that can be sold, piped, or used as vehicle fuel. Investors care because RNG projects create predictable revenue streams, often qualify for subsidies or carbon credits, and reduce regulatory and market risk tied to emissions, affecting long-term cash flow and asset value.

sustainable aviation fuel (saf) technical

"including sustainable aviation fuel (SAF), motor fuels, chemicals"

Sustainable aviation fuel (SAF) is a drop-in replacement for conventional jet fuel made from non-petroleum sources such as waste oils, plant residues, or specially grown crops and manufactured to work with existing aircraft and fueling systems. It matters to investors because airlines and regulators are pushing to cut aviation’s carbon footprint, creating long-term demand, supply-chain opportunities, and regulatory risks for companies that produce, supply, or fail to adopt SAF—think of it as cleaner fuel that can reshape future revenue and cost structures.

carbon capture and storage (ccs) technical

"an adjacent carbon capture and storage (CCS) facility"

Carbon capture and storage (CCS) is a set of technologies that pull carbon dioxide from power plants or the air, compress it, and store it long-term underground or in stable materials, like putting smoke into a sealed vault instead of releasing it into the air. Investors care because CCS can reduce a company’s emissions, influence regulatory costs and eligibility for subsidies, and affect long-term project viability and public perception, much like pollution control affects a factory’s future profits.

alcohol-to-jet (atj) technical

"specialty alcohol-to-jet (ATJ) fuels and chemicals"

A process that converts alcohols (like ethanol or isobutanol) into a direct replacement for conventional jet fuel by chemically reshaping the alcohol molecules into hydrocarbons that meet aircraft fuel standards. Investors watch alcohol-to-jet because it can create a new, lower‑carbon source of aviation fuel from existing crops or waste feedstocks, potentially changing fuel supply, costs, margins and eligibility for green incentives, much like turning raw fruit into a shelf‑ready product opens new markets.

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Contracted $70 Million Worth of Credits in 2026, Forecasting Production of over $77 Million in Credits for 2027

ENGLEWOOD, Colo., Oct. 01, 2026 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) today announced sales of substantially all of the Section 45Z tax credits generated by its ethanol and renewable natural gas (RNG) facilities in 2026, totaling $70 million worth of credits. Gevo has received over $30 million in cash from these credit sales through September 30 and expects the remaining cash to be received over the next six months. The credits were generated through the production and sale of low-carbon transportation fuels and were sold by Gevo pursuant to the credit’s transferability provisions. 

On September 30, Gevo sold $50 million worth of credits to a non-financial, publicly traded company. Gevo previously sold $20 million worth of credits to Quill Financial, Inc., the parent company of Quill Bank, a Utah-based community bank providing commercial, agricultural, mortgage and consumer banking services.

"We have successfully sold our expected 2026 45Z tax credit position while broadening participation beyond financial institutions to also include strategic corporate buyers,” said Gevo Chief Executive Officer Paul Bloom. “By efficiently monetizing the value generated through our low-carbon fuel operations, we are increasing cash on the balance sheet, enhancing financial flexibility and creating additional value for shareholders.”

Gevo expects to produce an additional $7 to $10 million worth of Section 45Z tax credits in 2027 due to the anticipated completion of debottlenecking activities at Gevo North Dakota that is expected to increase production capacity and associated carbon capture by 10-15%. The debottlenecking remains on track to be completed by the end of 2026.

The 45Z tax credit sales help Gevo to reinvest in low-cost, domestic clean fuel production. These investments support domestic energy security, create jobs in rural America and increase demand for agricultural products grown by U.S. farmers through expanding production and creating long-term shareholder value. As a performance-based credit, 45Z incentivizes investments in efficiency and carbon intensity reduction that enhance the competitiveness of clean fuels and U.S. agriculture.   

About Gevo

Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including sustainable aviation fuel (SAF), motor fuels, chemicals, and other materials that provide U.S.-made solutions. Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates an ethanol plant with an adjacent carbon capture and storage (CCS) facility and Class VI carbon-storage well. Gevo also owns and operates one of the largest dairy-based renewable natural gas (RNG) facilities in the United States, turning by-products into clean, reliable energy. Additionally, Gevo developed the world’s first production facility for specialty alcohol-to-jet (ATJ) fuels and chemicals operating since 2012. Gevo is currently developing the world’s first large-scale ATJ facility to be co-located at our North Dakota site. Gevo’s market-driven “pay-for-performance” approach regarding carbon and other sustainability attributes helps deliver value to our local economies. Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in tracking, measuring, and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market.

For more information, please visit www.gevo.com. 

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, the financial aspects of the 45Z tax credit sales, future 45Z tax credit production and sales, any effects of the 45Z sales transactions on Gevo’s cash flows, gross margin and adjusted EBITDA and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2025, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Media Contact
Communications@gevo.com

IR Contact
IR@Gevo.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much are Gevo's contracted 2026 Section 45Z tax credits worth?

Gevo sold substantially all its 2026 Section 45Z tax credits, totaling $70 million worth of credits. It received over $30 million in cash through September 30 and expects the remaining cash over the next six months.

How much does Gevo forecast in Section 45Z tax credits for 2027?

Gevo forecasts over $77 million worth of Section 45Z tax credits for 2027. It expects an additional $7 to $10 million from anticipated completion of North Dakota production improvements, which remain on track for completion by the end of 2026.

How did Gevo sell its Section 45Z tax credits?

Gevo sold the credits using Section 45Z's transferability provisions, which allow the credits to be sold. The credits were generated through production and sale of low-carbon transportation fuels.