Property, Plant, and Equipment

3 Months Ended

Mar. 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)			March 31, 2022		December 31, 2021
Luverne Facility retrofit asset	20			$	70,820	$	70,820
Plant machinery and equipment	10			17,949		17,949
Site improvements	10			7,157		7,157
Lab equipment, furniture and fixtures and vehicles	5			6,813		6,811
Demonstration plant	2			3,597		3,597
Buildings	10			2,543		2,543
Leasehold improvements, pilot plant, land and support equipment	2	to	7	2,841		2,802
Computer, office equipment and software	3	to	6	2,338		2,332
Construction in progress	—			107,848		88,989
Total property, plant and equipment				221,906		203,000
Less accumulated depreciation and amortization				(65,010)		(63,859)
Property, plant and equipment, net				$	156,896	$	139,141

The Company recorded depreciation and amortization expense related to property, plant and equipment and intangible assets as follows (in thousands):

	Three Months Ended March 31,
	2022		2021
Depreciation:
Cost of goods sold	$	1,086	$	1,088
Operating expenses	65		56
Patent amortization:
Cost of goods sold	5		5
Operating expenses	286		—
Total depreciation and amortization	$	1,442	$	1,149

Construction in progress includes $0.6 million for Gevo, $13.1 million for Agri-Energy, $67.4 million for NW Iowa RNG and $26.8 million for the Net-Zero 1 Project at March 31, 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 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 $0.5 million and nil of interest expense for the three months ended March 31, 2022, and March 31, 2021, respectively.