Gevo selects Koch Project Solutions to execute expansion projects
In the United States (US), biofuels- and biochemicals producer and process developer Gevo Inc., has announced that it has engaged Koch Project Solutions, LLC (Koch) to provide front-end engineering, design, and project execution management services for the expansion projects that Gevo is in the process of financing with Citigroup Global Markets, Inc.
Last month Gevo announced that it has optioned the right to purchase approximately 239 acres (≈ 96.5 hectares – ha) of land near Lake Preston, South Dakota (SD), and has met the initial milestone to secure control of a site by the end of 2020 that meets the conditions required by the contract that Trafigura Trading LLC (Trafigura) and Gevo executed in August 2020.
The production facility planned for Lake Preston is contemplated to produce about 45 million (US) gallons (≈ 170 million litres) per year collectively of jet fuel and renewable gasoline products and Gevo intends to make a decision on whether to purchase the Lake Preston site in the future as part of the Citigroup led project financing.
The world is changing rapidly. We appreciate being able to tap into Koch Project Solutions, a subsidiary of Koch Industries, and their vast experience. Gevo’s focus is on drop-in renewable resource-based hydrocarbons with a massively reduced carbon footprint. These hydrocarbons are the same as those derived from fossil-based oil, except that we make them from renewable resources. Because we use renewable resources, we can see how to reduce and eliminate tailpipe emissions, on a net-carbon basis and also reduce or even eliminate the pollutants that contribute to smog, said Dr Patrick Gruber, CEO of Gevo.
A capital project execution specialist, Koch Project Solutions partners with project owners to develop customized execution and contracting strategies designed to maximize the return on investment. The company is a part of Koch Engineered Solutions LLC, which operates in 25 countries.
We are excited to bring Koch resources to bear on the advancement of Gevo’s low-carbon hydrocarbons. Gevo and Koch Project Solutions have forged a beneficial partnership that will deliver this valuable technology at a meaningful scale. It fits well into the Koch vision to help deliver superior societal benefits from existing feedstocks, said Paul Switzer, President of Koch Project Solutions.