Variable Interest Entities

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

20. Variable Interest Entities

The Company has entered into agreements with various SPEs to facilitate the development and construction of facilities to provide carbon neutral power to NZ1. These SPEs are structured as a limited liability companies.

Consolidated VIEs

During September 2022 and February 2023, the Company entered into agreements with ZEDI, a national clean energy expert that provides expertise in capital management, development, engineering, and asset management, to develop and construct facilities to provide carbon neutral power to NZ1 via the two Project LLCs: KCWF and DRH, respectively.

Each Project LLC is currently funded via advances for certain long lead equipment items from Gevo. The Company has made certain refundable project advances to the Project LLCs, to induce to design and construct the power generation, transmission and distribution facilities that will serve NZ1.

Each Project LLC is a VIE, and the Company holds a variable interest in each Project LLC, for which the Company is the primary beneficiary. The Project LLCs are a VIE because their equity is insufficient to maintain its on-going collateral requirements without additional financial support from the Company. The Company is the primary beneficiary of the VIEs, and the VIEs are required to be consolidated on the Consolidated Balance Sheet, because the Company has a controlling financial interest in the VIEs and has both the power to direct the activities of the VIEs that most significantly impact the economic performance of the VIEs as well as the obligation to absorb losses or the right to receive benefits from the VIEs that could potentially be significant to the VIEs. As the primary beneficiary of these VIEs, the VIEs’ assets, liabilities, and results of operations are included in the Company’s consolidated financial statements as of, and for the nine months ended, September 30, 2023.

The following table summarizes the carrying amount of the VIEs’ assets and liabilities included in the Company’s Consolidated Balance Sheets at September 30, 2023 and December 31, 2022 (in thousands):

	September 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	15	$	—
Total current assets		15		—
Property, plant and equipment, net		33,944		8,302
Total assets	$	33,959	$	8,302
Liabilities
Current liabilities
Accounts payable and accrued liabilities	$	6,674	$	—
Total current liabilities		6,674		—
Total liabilities	$	6,674	$	—

All assets in the above table can only be used to settle obligations of the consolidated VIE to which the respective assets relate. Liabilities are nonrecourse obligations. Amounts presented in the table above are adjusted for intercompany eliminations.