Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2023

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) as of:

	March 31, 2023		December 31, 2022
Land	$	6,452	$	6,452
Plant facilities and infrastructure	76,875		76,900
Machinery and equipment	88,002		87,248
Furniture and office equipment	2,990		2,977
Software	2,217		2,217
Construction in progress	82,780		72,717
Total property, plant and equipment	259,316		248,511
Less: accumulated depreciation and amortization	(75,454)		(71,639)
Property, plant and equipment, net	$	183,862	$	176,872

The Company recorded depreciation expenses of $4.2 million and $1.2 million for the three months ended March 31, 2023 and 2022, respectively.

Construction in progress includes $28.9 million for Gevo, $11.4 million for the Agri-Energy segment ("Agri-Energy") related to a fractionation and hydrocarbon skid, $1.6 million for NW Iowa RNG and $40.9 million for NZ1 at March 31, 2023. Construction in progress includes $25.9 million for Gevo, $11.4 million for Agri-Energy, $1.0 million for NW Iowa RNG and $34.4 million for NZ1 at December 31, 2022. Construction in progress is not subject to depreciation until the assets are placed into service. At March 31, 2023, construction in progress included accruals of $13.3 million.

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 period. The Company did not capitalize interest expense during the three months ended March 31, 2023, and capitalized $0.5 million of interest expense for the three months ended March 31, 2022.