Significant new supply agreement secured. Kolmar, a private Swiss company headquartered in Zug, has signed a fuel supply agreement (FSA) for 45 MGPY of renewable transportation fuel, including SAF and isooctane, from the Net-Zero 2 plant. The agreement has an initial delivery term of eight years with options for two three-year extensions. The FSA should generate annual revenue of $350 million, or $300 million from transportation fuels, including environmental credits, or ~$6.65/gallon, and $50 million from protein and corn oil co-product sales.Contracted FSA portfolio expands and Net-Zero 1 and 2 are now full. The Kolmar FSA adds 45 MGPY and total revnue of $2.8 billion to the current contracted FSA portfolio. While the current contracted FSA portfolio is 99 MGPY, or revenue of ~$4.4 billion, the development pipeline remains large with potential CVX commitment of up to 150MGPY not yet included. The new contract fills up current design capacity of Net Zero 2 at yet to be determined location in the Midwest, but co-locating it with Net Zero 1 in South Dakota might leverage plant infrastructure.Building a world class team. The addition of Kolmar to the customer list is positive. While not as well known as Chevron (CVX) or Trafigura, Kolmar is a private company with a global footprint in the biofuels space. The expanded customer list complements recent moves to form alliances with ADM and Axens, and the additions of Chevron (CVX) as a co-investor and Kiewit as the FEED engineer and probable EPC contractor. Each partner enhances the credit profile and credibility of the Net Zero and ethanol-to-jet concepts.Funding is visible into next year, but development goal of 1 BGPY by 2030 likely to require added capital. Given 3Q2021 cash of $522 million, we don't believe that added capital is required right now based on the current development pipeline. Current cash creates a funding fairway into 2H2022. As additional FSAs are signed and construction costs firm up, additional capital raises, including equity, might be required, but we don't expect any issuance from the recently refreshed $500 million ATM program until the stock moves higher, or at least above the minimum strike price of $8.50/share on the CVX warrants. Read More >>