Property, Plant, and Equipment

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

10. Property, Plant and Equipment

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

	September 30, 2023		December 31, 2022
Land	$	6,505	$	6,452
Plant facilities and infrastructure		77,305		76,900
Machinery and equipment		95,016		87,248
Furniture and office equipment		2,828		2,977
Software		2,374		2,217
Construction in progress		137,231		81,019
Total property, plant and equipment		321,259		256,813
Less: accumulated depreciation and amortization		(83,142)		(71,639)
Property, plant and equipment, net	$	238,117	$	185,174

The Company recorded depreciation expenses of $5.2 million and $13.3 million for the three and nine months ended September 30, 2023, respectively, as compared with $1.3 million and $3.6 million for the same periods ended September 30, 2022.

Construction in progress includes $33.8 million for Gevo, $13.5 million for the Agri-Energy segment (“Agri-Energy”) related to a fractionation and hydrocarbon skid, and $89.8 million for NZ1 at September 30, 2023. Construction in progress includes $25.9 million for Gevo, $11.4 million for Agri-Energy, $1.0 million for NW Iowa RNG and $42.7 million for NZ1 at December 31, 2022. Construction in progress is not subject to depreciation until the assets are placed into service. At September 30, 2023, construction in progress included accruals of $9.1 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 any interest expense during the nine months ended September 30, 2023, and capitalized $1.2 million of interest expense for the nine months ended September 30, 2022.