Gevo, Inc. and Praj Industries Ltd. signed a binding, definitive Master Framework Agreement (MFA) to collaborate on providing renewable, low carbon, low particulate, Sustainable Aviation Fuel (SAF) and renewable premium gasoline in India and neighboring countries.
This follows an earlier announcement in April 2019 between both parties regarding the commercialization of renewable isobutanol, SAF and renewable premium gasoline.
Gevo will license its technology and Praj will provide technology, plant equipment and EPC services to sugar mills and ethanol plants to produce renewable isobutanol from 1G feedstock (cane juice, cane molasses, sugar syrup, etc.) and 2G feedstock (cellulosic biomass such as straws, bagasse, etc.) The renewable isobutanol will be aggregated and transferred to various refineries.
Gevo will also license its technology and Praj will provide technology, plant equipment and EPC services to refineries for converting renewable isobutanol into Sustainable Aviation Fuel and premium gasoline through the ASTM-approved pathway of Alcohol-to-Jet (ATJ).
According to Apte Research Group, University of California, Berkley, particle air pollution in South Asia ranks among the most severe in the world. In India alone, hundreds of millions of people are exposed to PM2.5 concentrations an order of magnitude greater than World Health Organization guidelines. The use of SAF, blended with aviation turbine fuel, can contribute to mitigating the risk associated with particulate air pollution.
SAF should find applications in commercial aviation as well as in the defense sector in India. Praj and Gevo supplied the sample of SAF produced by Gevo to the Indian Air Force (IAF). The Indian Air Force tested the sample and found it to be meeting the desired specifications as per relevant ASTM standards. Further tests are underway at IAF.
Pursuant to the terms of the MFA, Gevo is providing a license to Praj, which will allow the latter to carry out basic engineering and design package services, supply equipment, build plants and use jointly developed process design package to produce renewable isobutanol for plant operators who are licensed by Gevo.
In addition, Gevo is also providing a license to Praj, which will allow the latter to carry out basic engineering and design package services, supply equipment and build plants to convert renewable isobutanol into renewable gasoline and SAF for plant operators who are licensed by Gevo.