Colorado-headquartered advanced biofuel producer Gevo announced that it has entered into a long-term renewable isooctane purchase and sale agreement with chemical manufacturing group HCS.
Gevo claims that the agreement is an important step forward in its strategy to build out its advanced biofuels production facility in Luverne, Minnesota to increase the production of renewable isobutanol, renewable jet fuel as well as isooctane.
“This is a game-changing, bankable agreement for Gevo and another step forward to delivering on our promise to address the need for low-carbon fuels while also meeting sustainability requirements for our customers, to reduce their carbon foot print,” said Gevo CEO Dr. Patrick Gruber.
“This agreement strengthens our partnership with HCS Group that began with a prior agreement signed in 2017. Our technology and our renewable isooctane have proven themselves in highly demanding niche applications. We now want to scale substantially in order to enable rolling-out our renewable isooctane to a variety of high-end fuel and solvent applications.”
According to the release, Gevo will supply low-carbon, renewable isooctane to HCS Group over ten years if certain conditions are met, including the expansion of the Luverne facility.
“We have been impressed with the quality and the consistency of Gevo’s renewable isooctane, proving its value in the most demanding, high-end race fuel applications,” said Dr. Uwe Nickel, HCS Group CEO.
“This long-term agreement and the capacity expansion enables us to satisfy growing demand for our sustainable ECO products in mass markets driven by global, blue-chip accounts. We see strong interest for our advanced bio-based products in the outdoor power equipment and the cosmetics industries as well as in a wider range of fuel applications.”