Renewable energy firm Gevo, Inc. has announced a major financial milestone with the sale of $40 million in new non-recourse tax-exempt private activity bonds.
The bonds, issued by the Iowa Finance Authority on behalf of Gevo’s wholly owned subsidiary, Gevo NW Iowa RNG, LLC (Gevo RNG), were purchased by Barclays Capital Inc.
Proceeds from the bond sale have been used to refinance $40 million of Gevo RNG’s outstanding 2021 green bonds.
The refinancing allows Gevo to release $40 million of previously restricted cash that had been used to secure the original bond facility via a letter of credit.
After accounting for transaction costs and reserve funding, the deal is expected to improve Gevo’s liquidity by around $30 million.
The company also revealed plans to further refinance the remaining balance of the 2021 bonds later this year, which could unlock additional restricted cash and further strengthen its financial position.
In March 2025, the California Air Resources Board certified Gevo RNG’s carbon intensity score at -339 gCO2e/MJ, under the state’s Low Carbon Fuel Standard (LCFS).
Based on current LCFS modelling, the project is expected to result in the annual reduction of more than 175,000 metric tonnes of carbon dioxide equivalent emissions.
“This transaction not only improves our balance sheet and liquidity, but also sets the stage for scaling up our renewable natural gas operations,” said a Gevo spokesperson.
“We’re excited about the continued momentum of our RNG business and its potential to complement our other renewable fuel and chemical platforms.”
Gevo’s $40 million bond deal enables expansion of RNG operations
