Ethanol Blog

LINCOLN, Neb. (DTN) -- Englewood, Colorado,-based Gevo Inc. was granted an extension on a $1.46 billion U.S. Department of Energy loan guarantee on proposed plan to build an ethanol-to-jet sustainable aviation fuel plant in Lake Preston, South Dakota, as the company considers a change to the project including potentially building in North Dakota.

Prior to the presidential election in October 2024, Gevo received a conditional approval from the Biden administration for the project.

The Trump administration on Oct. 8, 2025, granted an extension on that approval to April 16, 2026, according to a statement from Gevo.

The extension will allow the company and the DOE to consider potential modifications to the scope of the project to "address this administration's energy policies and priorities" according to Gevo.

According to a filing with the U.S. Securities Exchange Commission, the extension allows Gevo and the DOE to consider changes to the scope of the project.

Those modifications could include the construction of a lower-cost 30-million-gallon production facility at Gevo's existing ethanol and carbon capture utilization and storage plant in North Dakota.

"This is an important infrastructure project that creates jobs and opportunity for rural America, so it is significant that we continue to work with DOE to make this project a success," the company said in a statement.

The Gevo project has been called into question after South Dakota lawmakers passed a law forbidding the use of eminent domain to build carbon pipelines.

Connecting to the Summit Carbon Solutions proposed pipeline is seen as vital for Gevo's plans in Lake Preston.

As a result of the announcement by Gevo, its stock jumped nearly 10% prior to markets opening on Wednesday.

Read more on DTN:

"Summit Announces Carbon Pipeline Plan," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on social platform X @DTNeeley

(c) Copyright 2025 DTN, LLC. All rights reserved.