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Gevo enters into a fuel sales agreement with SAS for sustainable aviation fuel

Gevo, Inc. signed a Fuel Sales Agreement with Scandinavian Airline System SAS) to produce and supply sustainable aviation fuel (SAF) for use and distribution in low-carbon fuel regions of the United States.

With the finalization of this new supply contract, Gevo will supply SAF to SAS from Gevo’s expanded Luverne, Minnesota plant, which is expected to be constructed over the next several years.

For every gallon of SAF produced, Gevo also produces approximately 10 pounds of protein that goes into the food supply chain and can sequester up to 2 pounds of carbon dioxide as carbon into the soil, making it one of the only renewable jet fuel producers to produce both food and fuel while sequestering carbon dioxide and lowering the GHG emissions as compared to traditional fossil-based jet fuel.

In addition to adding food back into the food chain, Gevo will also be more transparent with its sustainability practices by utilizing blockchain technology to track its sustainable agriculture efforts.

Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is developing renewable electricity and renewable natural gas for the energy of production processes resulting in low-carbon fuels with reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum) fossil-based fuels across their lifecycle. Gevo’s products deliver the technical performance expected of traditional fossil-based fuels in infrastructure and engines, but significantly reduce greenhouse gas emissions.

In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions, which would otherwise increase greenhouse gas emissions.

Gevo believes that because of its ability to use a variety of low-carbon, sustainably produced feedstocks and its proven technology resulting in the economical production of the main components of gasoline, jet fuel, and diesel fuel using a very low carbon footprint, Gevo has the potential to generate returns that justify the build-out of a multi-billion dollar business.



From Gevo's site:

Our plant in Luverne has gone through a major transformation since we acquired it. It currently is set up to produce about 100 million pounds of animal feed, about 20 million gallons per year of ethanol, with an IBA production capacity of 1.5 MGPY, and 3 million lbs of vegetable oil.
IBA appears to be short for isobutyl alcohol.

This process (a) takes in food and (b) yields roughly as much animal feed as other products.  If acid hydrolysis is part of the process, the feed is high in sulfur and cannot constitute too much of the total animal feed stream or it will be toxic.  As a consequence, it just can't get very big even on the rather small scale of crop-derived biofuels.

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