Jet fuel plant will cost $1 billion breaks ground near Lake Preston

2022-09-17 02:30:56 By : Mr. john Xiao

A new Gevo facility has broken ground in Lake Preston, and it's the largest economic investment in the state's history, according to a news release from Gov. Kristi Noem's office.

Noem is still healing from back surgery and was unable to attend the groundbreaking, so first gentleman Bryon Noem addressed the governor's excitement for the project. 

“The life this is going to breath into Lake Preston and the surrounding communities is going to be huge. It’s astronomical," he said. 

Gevo, a sustainable fuel production company, is expected to add 1,000 construction jobs and 90 long-term employees. The project is expected to cost $1 billion, company officials previously said.

Net-Zero 1 is innovative, but not because it's creating completely new technology. All the parts that go into the facility are already used worldwide. What Gevo is doing at Net-Zero 1 that is unique is combining all these pieces of technology in one place to create a zero-carbon emission fuel.

"A lot of these technologies aren't new, innovative and smart. It's just that they haven't been put together this same way,” said Chris Ryan,  Gevo's president and chief operating officer, during the groundbreaking ceremony.

A facility of this magnitude will need power and a lot of it. Green energy sources must be used to achieve Gevo's zero emissions goal. The most effective and emissions-free way to get that power to the plant is by building wind turbines and solar panels on-site.

Gevo has partnered with Juhl Energy and EnTech Energy Center to build 20 wind turbines and a solar farm, generating and storing the energy necessary to turn corn into jet fuel.

Lake Preston, Arlington and the surrounding communities will surely feel the positive impacts of the Net-Zero 1 facility. Not only will Gevo provide employment, but there will also be growth in the community as it drives industry. 

Lake Preston had fewer than 600 people when the last census was taken in 2020. Today, a new apartment building has been built, new homes are being constructed and an additional housing development will soon have lots for sale.

Kingsbury County Commissioner Doug Kazmerzak expressed excitement for the opportunities and growth the facility will bring to the region. Despite there being a wind farm and ethanol plant just outside of Lake Preston city limits, the Gevo project has not seen any pushback by residents.

"I thought the wind farms perhaps would have been the obstacle. But even then, no one has opposed it," said Kazmerzak.

And prospects like the Net-Zero 1 will keep local graduates in the community.

"Andy Carlson is a local guy that has done good and is now an engineer with Gevo. He graduated from the Lake Preston High School," Kazmerzak said.  

The facility, which will be constructed on 245 acres, will use regionally grown corn, paying farmers a premium for corn, per the company. It will be the Gevo's first commercial-scale sustainable aviation fuel facility.

"Lake Preston is a great community that is lucky enough to have young leaders with their eyes set onto the future," said Mayor Andy Wienk. "This is exciting. Net-Zero 1, the flagship to transform energy into energy dense liquids for renewable jet fuel. This is the future.”

Site preparation has already begun, with official construction expected to start next year.

"Businesses are choosing South Dakota because we are ‘Open for Business,’ and we give them the opportunity to succeed," Noem said in a statement. "This facility proves that government mandates are not necessary for our energy industry to be environmentally responsible. Companies like Gevo are taking the lead (to) build an all-of-the-above American energy supply and they’re working with our farmers to do it.”

More:$1 billion zero-emissions hydrocarbon plant planned for Lake Preston will produce jet fuel

There are also plans for the site to incorporate green hydrogen produced from water and renewable natural gas, according to the company.

Gevo is "commercializing the next generation of gasoline, jet fuel and diesel fuel," with the potential to achieve zero carbon emissions and reduce greenhouse gases with sustainable alternatives, per a news release from the company.

“South Dakota provides all the elements for success required for our first commercial facility, but we’re actively working to identify and develop our second site since we have supply offtake agreements that require additional capacity beyond Net-Zero 1,” Ryan said in a release. “As we build our production capacity to meet our supply obligations, we know these projects also deliver value to local farmers and communities. We’re excited to move forward and provide that value."

The company is headquartered in Englewood, Colo. The project is scheduled to allow Gevo to begin delivery of initial volumes of sustainable aviation fuel in 2025 to "fulfill a portion of existing supply agreements," per the release.