Chevron USA and Gevo plan to invest in building new facilities that will process inedible corn to produce sustainable aviation fuel (SAF).
Through the proposed collaboration, Gevo will operate its proprietary technology to produce SAF and renewable blending components for blended petro.
In addition to co-investing with Gevo in one or more projects, Chevron will have the right to offtake about 150 million gallons per year to market to customers.
“Chevron is providing our customers with next-generation renewable fuels that can help them lower their overall carbon footprint,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron.
“This potential investment leverages Gevo’s innovative approach to producing sustainable aviation fuel, complementing other renewable fuels investments we are making as part of our higher returns, lower carbon strategy.”
“We are pleased to collaborate with Chevron, who is willing to co-invest in building out Gevo's capacity to produce renewable, high-performing hydrocarbons that can be used in existing equipment and engines. Chevron’s advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers,” added Dr Patrick Gruber, CEO of Gevo.
The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.
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