Kolmar and Gevo have entered into a financeable fuel supply agreement for 45 million gallons per year (on a neat basis) of renewable, energy-dense liquid hydrocarbons—including sustainable aviation fuel (SAF) and isooctane that is a key component of renewable premium gasoline—that are expected to be produced from Gevo’s second Net-Zero production facility (earlier post), Net-Zero 2.
Gevo’s Net-Zero 1 project is being engineered now, with an expected startup in 2024. Gevo is developing a new project—Net-Zero 2—at a location to be determined.
Kolmar is a wholly owned subsidiary of Kolmar Group AG that is a privately held service provider, manufacturer, and marketer of renewable fuels headquartered in Zug, Switzerland.
Deliveries to Kolmar would represent the entire plant output based on Net-Zero 2’s current design. Under the fuel supply agreement, Net-Zero 2 is expected to generate approximately US$300 million per year of gross revenue, including revenue from environmental benefits. With protein and corn oil co-product sales, Net-Zero 2 is estimated to generate gross revenues of approximately US$350 million per year.
Over the eight years of the agreement, Net-Zero 2 all-in, gross revenue is estimated to be up to approximately US$2.8 billion, inclusive of renewable fuels and related products for the food chain.
The fuel supply agreement with Kolmar is subject to certain terms and conditions. A copy of the fuel supply agreement with Kolmar has been filed with the US Securities and Exchange Commission on Form 8-K.