Chevron USA, a subsidiary of Chevron Corporation, and Gevo have signed a letter of intent (LOI) to invest jointly in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel (SAF), which can lower the lifecycle carbon intensity of fuels used in the aviation industry. The new facilities would also produce proteins and corn oil.

The LOI also contemplates the issuance of warrants to Chevron to purchase up to 15 million shares of Gevo common stock at an exercise price equal to the 90-day volume weighted average price of the common stock at the time of the announcement of the LOI, not to be lower than $8.50 per share.

Through the proposed collaboration, Gevo would operate its proprietary technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity.

In addition to co-investing with Gevo in one or more projects, Chevron would have the right to offtake approximately 150 million gallons per year to market to customers.

Chevron is providing our customers with next-generation renewable fuels that can help them lower their overall carbon footprint. This potential investment leverages Gevo’s innovative approach to producing sustainable aviation fuel, complementing other renewable fuels investments we are making as part of our higher returns, lower carbon strategy.

—Mark Nelson, executive vice president of Downstream & Chemicals for Chevron

We are pleased to collaborate with Chevron, who is willing to co-invest in building out Gevo’s capacity to produce renewable, high-performing hydrocarbons that can be used in existing equipment and engines. Chevron’s advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers.

—Dr. Patrick Gruber, CEO of Gevo

The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.