In the United States (US), Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, one of the world’s largest integrated energy companies, and compatriot biofuels- and biochemicals producer and process developer Gevo, Inc., have signed a Letter of Intent (LoI) to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel (SAF).
Through the proposed collaboration, Gevo would operate its proprietary technology to produce SAF and renewable blending components for motor gasoline to lower its lifecycle carbon intensity. In addition to co-investing with Gevo in one or more projects, Chevron would have the right to offtake approximately 150 million (US) gallons (≈ 567.75 million litres) 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. 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, said Mark Nelson, EVP of Downstream & Chemicals for Chevron.
The new facilities would also produce proteins and corn oil.
We are pleased to collaborate with Chevron, which 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, commented Dr Patrick Gruber, CEO of Gevo.
The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.
