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Gevo inks renewable fuel supply deal with Avfuel, plans new facility

Commercial bio-based isobutanol plant at Luverne. Source: http://www.gevo.com

June 21 (Renewables Now) - US biofuels company Gevo Inc (NASDAQ:GEVO) will be supplying renewable alcohol-to-jet fuel (ATJ) to Avfuel Corporation under a newly-signed long-term agreement that also includes the construction of a new plant in Minnesota.

The contract, which represents Gevo’s first long-term commercial supply agreement for its ATJ, will become effective on July 1, 2018, and it contemplates two phases. As part of the first one, Gevo will make deliveries from its smaller-scale hydrocarbon processing facility in Silsbee, Texas, and, in the meantime, will be building a larger-scale plant at its existing ethanol and isobutanol production site in Luverne, Minnesota.

The second phase will commence upon completion of the new facility and will last for at least five years. During that period, Gevo will be delivering larger volumes of ATJ, ramping up to 1 million gallons of unblended ATJ per year. When blended with conventional jet fuel, it would produce multi millions of gallons of finished ASTM D1655 jet-fuel product for distribution per year, Gevo said.

“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.

Avfuel has more than 650 company-branded locations and over 3,000 fueling locations around the world.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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