Gevo Abandons South Dakota SAF Project Amid Regulatory Woes

Gevo Inc., a US-based renewable fuels producer, has abandoned its ATJ-60 sustainable aviation fuel project in Lake Preston, South Dakota. The company announced this on August 6, 2026, along with its second-quarter results and earnings call.

The project aimed to convert corn ethanol into aviation fuel while capturing and storing carbon dioxide emissions. However, it depended on a connection to a large third-party CO2 transport and storage network, as well as federal tax incentives for low-carbon aviation fuel.

According to Gevo, the state's legal framework became unfavorable to the type of CO2 transport infrastructure required. A state law removed the eminent domain power needed to secure certain rights of way, and the South Dakota Public Utilities Commission refused to authorize the proposed pipeline route.

The project's cancellation comes with a non-cash impairment charge, but it won't affect Gevo's cash position. The company will redirect its investment toward its North Dakota site, which could rely on a planned financial partnership with Ara Energy and Ara Partners.