Sustainable Jet Fuel Developer Moves Priority From SD to ND Amid Summit Pipeline Delays

Gevo Inc. Plans Sustainable Aviation Fuel Shift From South Dakota To North Dakota Amid Summit Carbon Pipeline Delays

Gevo Inc., a Colorado-based developer of sustainable aviation fuel (SAF), announced plans to redirect its immediate investment from South Dakota to North Dakota due to delays in the Summit Carbon Solutions pipeline project. The company noted that it still intends to develop its South Dakota site in the future.

Gevo secured a $1.46 billion loan from the U.S. Department of Energy (DOE) to build a jet fuel facility in Lake Preston, South Dakota. Officials told the North Dakota Monitor that the company will now prioritize expanding operations at the Red Trail Energy ethanol plant in Richardton, North Dakota, which Gevo acquired in 2024. Gevo is currently working with the DOE to transfer the loan to this location.

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Red Trail Energy became the first ethanol plant in the United States to capture and store carbon dioxide in 2022. The site’s geology supports permanent underground carbon storage, making it ideal for expansion.

Gevo’s expansion in North Dakota will enable ethanol-to-jet fuel conversion using its proprietary Alcohol-to-Jet (ATJ) process, with carbon capture integral to production. “We don’t have to share pipelines. We don’t have to wait. We’re already doing it,” said Pat Gruber, CEO of Gevo.

The South Dakota site originally depended on the Summit pipeline, which faced resistance from landowners, resulting in rejected permit applications by the South Dakota Public Utilities Commission and an eminent domain ban enacted by the Legislature and signed by Governor Larry Rhoden. Despite this, Rhoden expressed optimism that Gevo would eventually expand in South Dakota.

Summit, headquartered in Iowa, is seeking to modify its pipeline permit through the Iowa Utilities Board to remove North Dakota as the endpoint. A company spokesperson told the Iowa Capital Dispatch that the change would allow potential transport routes through Nebraska or South Dakota.

Gevo’s North Dakota facility is projected to produce 30 million gallons of jet fuel annually—half the capacity initially planned for South Dakota—but offers room for future expansion on its 500-acre site. The $500 million project will enable the sale of captured carbon to oil producers for Enhanced Oil Recovery (EOR) in the Bakken Formation, North Dakota’s leading oil-producing region.

In September, Gevo announced a partnership with Biorecro North America to manage carbon credit sales from the North Dakota plant. The company remains in discussions with oil producers regarding future EOR projects and carbon utilization opportunities.