US-headed biofuels- and biochemicals producer and process developer Gevo Inc., has announced that it has entered into a financeable renewable fuel supply agreement with Kolmar Americas Inc (Kolmar), a wholly-owned subsidiary of Switzerland-headed Kolmar Group AG, a privately held service provider, manufacturer, and marketer of renewable fuels.
The agreement with Kolmar is for 45 million (US) gallons (≈ 170.3 million litres) per year (on a neat basis) of renewable, energy-dense liquid hydrocarbons including sustainable aviation fuel (SAF) and isooctane that is a key component of renewable premium gasoline, that are expected to be produced from Gevo’s second Net-Zero production facility, Net-Zero 2.
Gevo’s Net-Zero 2 plant is currently being developed in the Mid-West of the United States. Deliveries to Kolmar would represent the entire plant output based on Net-Zero 2’s current design.
In addition to our traditional businesses, Kolmar is dedicated to the commercial development and optimization of leading-edge low carbon products and technologies. We are excited to align Kolmar’s global supply reach, logistics, and regulatory capabilities with GEVO’s Net-Zero 2 production of cutting-edge low carbon aviation and gasoline fuels to get these advanced, sustainable products to the varied global markets that need and want them the most, said Raf Aviner, President of Kolmar Americas.
Under the fuel supply agreement, which is subject to certain terms and conditions, Net-Zero 2 is expected to generate approximately US$300 million per year of gross revenue, including revenue from environmental benefits.
With protein and corn oil co-product sales, Net-Zero 2 is estimated to generate gross revenues of approximately US$350 million per year.
Over the eight years of the agreement, Net-Zero 2 all-in, gross revenue is estimated to be up to approximately US$2.8 billion, inclusive of renewable fuels and related products for the food chain.
With this agreement, Kolmar is investing in the future, and this kind of foresight makes for another excellent partner and should make clear to our investors that we have traction in the market. We have great potential in our business system to reinvent what is possible. Our system translates well because we actively address food security with the high-value nutritional products that our process generates simultaneously as we produce our advanced renewable fuels. Both products come from the same acre of farmland and add to our environmental benefit, said Dr Patrick R. Gruber, Gevo’s CEO.