Gevo CEO Praises Trump Executive Orders that Put Biofuels in ‘The Good Category’

by Michael Johnson (AgWeb) Gevo's CEO says the Trump administration’s directives put facts back in the driver’s seat and put renewable fuels in a stronger position. -- Gevo CEO Patrick Gruber is taking recent executive orders of President Donald Trump in stride, saying the president's actions so far have him more optimistic than ever about large-scale alcohol-to-jet-fuel production. Gevo is a world leader in the production of sustainable, low-carbon renewable fuels and chemicals made from renewable carbon sources.

Gruber likes what he’s hearing, saying the administration’s directives put facts back in the driver’s seat and put renewable fuels in a stronger position.

Some of the supportive words include the executive order on “ Unleashing American Energy ,” which was one of 26 executive orders Trump signed on his first day back in office. Within that order is a section that lists biofuels on the same line as oil — as in a priority form of energy. The order says agencies are to review any actions that may potentially burden the development of those domestic energy resources.

“So for us, I'm saying, ‘Yeah, baby, we’re in the good category, awesome,’” Gruber said.

Another section of that executive order he sees as even more important is one titled “Prioritizing Accuracy in Environmental Analyses.” This intends to remove politics from the measurement and modeling formulas that determine how sustainable or regenerative a form of energy is. Instead, “agencies shall strictly use the most robust methodologies of assessment at their disposal and shall not use methodologies that are arbitrary or ideologically motivated.”

“You know what that executive order says?” Gruber asked rhetorically. “No more BS. No more political weighting of things. Hallelujah! This is wonderful. Let's have it. Let's be real. I want that done, right? I want that done. I want it done with the (Renewable Fuel Standard), too.”

The long process involves the USDA’s processing and Gevo's work of securing sequestration. Owning the Red Trail Plant now gives them access to sequestration whether a CO2 pipeline gets built or not, Gruber said.

Gruber said they plan to develop a SAF plant at the Red Trail site, and they could move the entire SAF plan project to Richardton “if we wanted.”

Taking it further, Gruber said the business environment is so much better in North Dakota that he believes they could get a SAF plant built there faster than the process has been in South Dakota.

“It's completely different,” Gruber said. "Ag and oil people and gas people are the same people up there. They get it. It's about growth economically. It's a very different mentality than in South Dakota. It's like, unbelievable, shockingly, unbelievably different.”

He feels with the new administration and new cabinet members, things are looking up for the development of a carbon pipeline. He sees North Dakota in need of CO2 for enhanced oil recovery in the not-too-distant future. He also see CO2 pipelines being built in time to fulfill that need.

Clean Fuel Production Credits, or 45Z as it is commonly referred to, are an integral part of SAF’s immediate future as a means of subsidizing the producers who are investing in new infrastructure and building a market for their products. Gruber believes that 45Z will be finalized and extended. The 45Z credit is a tax credit available for fuels that meet certain emissions standards. He does not see 45Z as a handout. He believes that those producing renewable energy should not be subsidized forever, but while they are, they need to be able to prove it’s working, or “pay for performance.” He looks at solar and wind as a couple of examples that have been around long enough that they should be able to stand on their own without government subsidies.

“It forces people to make a competitively costed product instead of having a forever plan relying on government subsidy or government tax breaks,” he said.

Gruber urges Americans who care about agriculture to tell their story of the responsible and sustainable efforts they are making to produce crops better than anyone else in the world. He feels many around the world are talking poorly of U.S. agriculture because they do not know anything about it.

“We are the best,” Gruber said of American agriculture. “We do the most mitigation of water runoff. We do the precision agriculture better than anyone. Why don’t we brag about it and use it as a tool to compete on a worldwide basis?” READ MORE