Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

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

	Useful Life (in years)	December 31,
		2022		2021
Land		$	6,452	$	410
Plant facilities and infrastructure	5 to 20	76,900		84,117
Machinery and equipment	5 to 20	87,248		25,369
Furniture and office equipment	3 to 7	2,977		2,550
Software	3 to 6	2,217		1,564
Construction in progress		72,717		87,591
Total property, plant and equipment		248,511		201,601
Less accumulated depreciation and amortization		(71,639)		(63,859)
Property, plant and equipment, net		$	176,872	$	137,742

The Company recorded depreciation expenses of $6.5 million and $4.8 million for the years ended December 31, 2022 and 2021, respectively.

At December 31, 2022, construction in progress included accruals of $13.8 million.

Construction in progress includes $25.9 million for Gevo, $11.4 million for Agri-Energy related to a fractionation and hydrocarbon skid, $1.0 million for NW Iowa RNG and $34.4 million for NZ1 at December 31, 2022. Construction in progress includes $0.4 million for Gevo, $9.1 million for Agri-Energy, $55.5 million for NW Iowa RNG and $22.5 million for NZ1 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 $0.3 million and nil of interest expense for the years ended December 31, 2022, and 2021, respectively.