Gevo has cancelled plans to build a multi-billion-euro clean aviation fuel plant in Lake Preston, South Dakota, after struggling to secure the CO₂ transport and storage infrastructure needed for the facility.
The alternative fuels company is formally abandoning the dormant project, known as AtJ-60, along with other "non-core project activities", executives said during an earnings call on 6 August. Instead, the company will focus on expanding and upgrading its ethanol production and carbon capture operations in North Dakota.
As a result of the decision, Gevo recorded a non-cash impairment charge of approximately €152 million during the second quarter.
The company also increased its adjusted EBITDA guidance for 2026 to more than €52 million, up from approximately €26 million. The improved outlook reflects higher expected revenue in the United States from the Section 45Z clean fuels tax credit, as well as Gevo's recent qualification to sell into Canada's clean fuel compliance market.
ATJ-60 was intended to be Gevo's first sustainable aviation fuel (SAF) facility, with planned production of up to 60 million gallons per year.
The company aimed to use corn ethanol as its feedstock and capture and permanently store the refinery's CO₂ emissions, creating a carbon-negative fuel production process. The plant was expected to connect to Summit Carbon Solutions LLC's proposed CO₂ pipeline and storage network across the US Midwest.
Gevo abandons SAF plant plans
