Gevo Inc. (NASDAQ: GEVO) withdrew its loan guarantee application from the U.S. Department of Energy Office of Energy Dominance Financing and is pursuing alternative funding for its ATJ-30 sustainable aviation fuel project, the company announced.

The renewable fuels company withdrew the application after discussions with the DOE office revealed that required business objectives, specifically supporting enhanced oil recovery operations, are not commercially viable at scale in the project area. Gevo maintains its goal of securing financing for the project by the end of 2026.

The company had previously received a conditional commitment from the DOE for its ATJ-60 project in Lake Preston, South Dakota, and was working to transition that commitment to the smaller ATJ-30 project at its Gevo North Dakota facility in Richardton.

The North Dakota facility, which Gevo acquired, includes low-carbon ethanol production and carbon capture capabilities. The facility is currently generating cash flow, according to the company.

"Over the past year, we have substantially derisked our position in low-carbon ethanol required for our ATJ and we believe we are in a better position to secure alternative financing," said Paul Bloom, Gevo's chief executive officer.

Gevo can resubmit an application for a project at a later date if desired. The company stated the withdrawal allows it to pursue financing options that align better with its business strategy and timeline.

The ATJ-30 project would produce sustainable aviation fuel using alcohol-to-jet technology at the North Dakota site.