Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

The following table sets forth the Company’s property, plant and equipment by classification (in thousands) as of:


	Useful Life (in years)			June 30, 2022		December 31, 2021
Land				$	410	$	410
Plant facilities and infrastructure	5	to	20	84,117		84,117
Machinery and equipment	5	to	10	25,416		25,369
Furniture and office equipment	3	to	7	2,606		2,550
Software	3	to	6	1,621		1,564
Construction in progress				128,080		88,990
Total property, plant and equipment				242,250		203,000
Less accumulated depreciation and amortization				(66,196)		(63,859)
Property, plant and equipment, net				$	176,054	$	139,141

The Company recorded depreciation expense of $1.2 million and $2.3 million for the three and six months ended June 30, 2022, respectively, as compared with $1.2 million and $2.4 million for the same periods ended June 30, 2021.

At June 30, 2022, construction in progress included accruals of $11.5 million.

Construction in progress includes $0.8 million for Gevo, $13.4 million for our subsidiary, Agri-Energy, LLC ("Agri-Energy") $75.5 million for NW Iowa RNG and $38.4 million for the Net-Zero 1 Project at June 30, 2022. Construction in progress includes $0.4 million for Gevo, $9.1 million for Agri-Energy, $56.9 million for NW Iowa RNG and $22.5 million for the Net-Zero 1 Project at December 31, 2021. Construction in progress is not subject to depreciation until the assets are placed into service.

Borrowing costs. Borrowing costs directly attributable to acquisition and construction of an asset are capitalized until it is completed and ready for its intended use, and thereafter are recognized in profit or loss for the current period. The Company capitalized $0.8 million and nil of interest expense for the six months ended June 30, 2022, and June 30, 2021, respectively.