The White House is backing a planned aviation fuel refinery in Lake Preston as part of its effort to reduce the country’s carbon footprint.
But despite the federal government supporting the large-scale, corn starch-to-jet fuel facility with a newly issued low-interest loan for Gevo Net-Zero 1, LLC, the project continues to rely on the construction of a 2,000-mile carbon sequestration pipeline that’s facing heavy opposition in South Dakota.
President Joe Biden’s administration announced Wednesday the Department of Energy’s Loan Programs Office has granted a $1.46 billion loan guarantee to Gevo. It’s part of the administration’s push to boost sustainable aviation fuel (SAF) production and reduce carbon emissions.
As proposed, the facility would produce up to 60 million gallons of SAF annually, along with renewable diesel, naphtha, and other by-products, including animal feed. It would be the first commercial-scale project in the U.S. to convert corn starch into SAF using carbon capture and renewable power, reducing life-cycle emissions compared to traditional jet fuel.
Gevo touts the facility as an economic driver, projecting approximately 1,300 indirect jobs during construction and 100 permanent jobs once operational. Additionally, the project aims to produce high-value protein products and corn oil, creating new opportunities for local farmers and rural communities, according to the company.
“This marks a watershed moment for the Net-Zero 1 project and a critical step forward in Gevo’s mission to transform the aviation industry,” Gevo CEO Patrick Gruber said, adding that the DOE’s endorsement is expected to attract further capital investments.
The facility is also championed as a means to prevent 600,000 metric tons of CO2 emissions per year, contributing to the U.S.’s broader goal of achieving net-zero aviation emissions by 2050.
While the loan guarantee signals federal support for clean energy initiatives, the Lake Preston facility is tied to a controversial carbon sequestration pipeline project underway by Summit Carbon Solutions. The facility’s ability to meet its net-zero emissions goals hinges on capturing and storing carbon emissions from its SAF production, which requires a carbon pipeline to transport those emissions to an underground storage facility in North Dakota.
The proposed carbon pipeline, however, has sparked significant opposition from landowners and environmental activists concerned about its environmental and safety impacts. Summit Carbon Solutions’ use of eminent domain to access its planned route has also generated resistance.
The Iowa-based company continues to pursue permitting for its project, while voters in South Dakota next month will decide on Referred Law 21, a ballot measure brought by opponents of the carbon pipeline project.