Global Clean Energy Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE D - PROPERTY, PLANT AND EQUIPMENT

Property, plant, and equipment as of September 30, 2023 and December 31, 2022 are as follows:

	September 30, 2023		December 31, 2022
Land	$	7,855,872	$	7,855,872
Office equipment		1,851,401		2,047,549
Buildings		2,684,402		2,684,402
Refinery and industrial equipment		88,575,526		88,057,913
Transportation equipment		468,587		468,587
Construction in process		483,590,373		452,735,198
Construction period interest		169,203,447		95,795,804
Total cost	$	754,229,608	$	649,645,325
Less accumulated depreciation		(1,952,214)		(1,112,498	)
Property, plant and equipment, net	$	752,277,394	$	648,532,827

Depreciation of office equipment and transportation equipment are computed using the straight-line method over estimated useful lives of 3 to 5 years. Refinery assets and buildings are depreciated using the straight-line method over estimated useful lives of 5 to 25 years. Depreciation expense for property and equipment was approximately $0.1 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and $0.6 million and $1.0 million for the nine months ended September 30, 2023 and 2022, respectively. During the three months ended September 30, 2023 and 2022, interest of $28.2 million and $16.2 million, respectively, was capitalized and included in property, plant and equipment, net, and $73.4 million and $36.6 million of interest was capitalized for the nine months ending September 30, 2023 and 2022, respectively. The Company has recognized a total of $169.2 million of capitalized interest during the construction of the Bakersfield Renewable Fuels Refinery.