Gevo and Avfuel announce renewable jet fuel supply agreement
US-based advanced renewable fuel and biochemical platform technology company, Gevo, Inc., has announced that it has entered into a long-term agreement to supply its renewable alcohol-to-jet fuel (ATJ) to Avfuel Corporation, a leading independent and global aviation fuel and services supplier to all industry consumer groups, effective July 1, 2018. The supply agreement with Avfuel is Gevo’s first long-term commercial supply agreement for its ATJ.
According to a statement, the supply agreement contemplates two phases. During the first phase, Gevo will supply Avfuel from its smaller-scale hydrocarbon processing facility it operates in Silsbee, Texas, in partnership with South Hampton Resources, Inc.
Currently, the Silsbee Facility has the capacity to produce approximately 70 000 (US) gallons (≈ 265 000 litres) of renewable hydrocarbon products per year – 50 percent of which is ATJ and 50percent of which is isooctane.
We are pleased to have a customer and partner like Avfuel. Avfuel has tremendous reach with more than 650 Avfuel-branded locations and 3 000-plus fueling locations worldwide to a vast scope of customers. We appreciate its vision and leadership in working with us to bring a better and more sustainable fuel to the marketplace. Not only can we reduce greenhouse gas emissions, but we also can produce a higher quality product than petroleum-based jet fuel from a technical standpoint. The whole supply chain should benefit, as well as the end customer. This contract with Avfuel is an excellent first step and will serve as a catalyst for Gevo to build up the aggregate demand so we can proceed with the development of a larger scale ATJ facility, said Patrick Gruber, Gevo’s CEO in a statement.
During the first phase, Gevo expects to construct a larger-scale hydrocarbon facility at its existing ethanol and isobutanol production facility located in Luverne, Minnesota, to produce larger quantities of ATJ, subject to Gevo’s receipt of sufficient financing.
Upon completion of the Luverne Hydrocarbon Facility, the second phase of the supply agreement would commence, which would have a term of five years, subject to extension upon the mutual agreement of the parties.
During the second phase, Gevo would supply Avfuel with larger volumes of ATJ, ramping up to 1 million gallons (3.785 million litres) of unblended ATJ per annum, which, when blended with conventional jet fuel, would produce many millions of gallons of finished ASTM D1655 jet-fuel product for distribution annually.
As a leader in the global supply of aviation fuel and services, we have a social responsibility to make sustainable alternative jet fuel a reality in the marketplace. Our agreement with Gevo is a notable component in our overall strategy to support our industry’s commitment to reduce carbon emissions and enhance sustainability to mitigate its effect on climate change, said Craig Sincock, Owner, President and CEO of Avfuel.
Sincock remarked that the agreement with Gevo will help the company meet the demand of its customers for a low-carbon, alternative jet fuel, filling a gap in the industry’s supply chain.