October 31, 2020

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Gevo, Praj to commercialise sustainable aviation fuels in India

Gevo, Praj to commercialise sustainable aviation fuels in India
Photo courtesy of Gevo

Gevo, Inc. (NASDAQ: GEVO) and Praj Industries Ltd. have signed a binding, definitive master framework agreement (MFA) to collaborate in providing sustainable aviation fuel (SAF) and renewable 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 like 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 (SAF) and premium gasoline through the ASTM-approved pathway of Alcohol-to-Jet (ATJ).

SAF should find applications in commercial aviation as well as in the defense sector in India. Praj and Gevo have supplied the sample of SAF produced by Gevo to the Indian Air Force (IAF). The Indian Air Force tested the sample and found it met the desired specifications as per relevant ASTM standards. Further tests are underway at IAF.

“Jet fuel and gasoline made with our technology are made from renewable resources, reduce greenhouse gasses, and eliminate particulates,” said Patrick Gruber, CEO of Gevo. “We are pleased to be working with Praj, moving down the commercialization path and that the Indian Air Force has the vision to see that the domestic supply of jet fuel makes sense. We also recognize that products like ours have the potential to reduce air pollution.”

“We are happy to partner with Gevo, a leading renewable chemicals and advanced biofuels company to expand the commercial-scale use of SAF in India,” said Dr. Pramod Chaudhari, executive chairman of Praj Industries. Praj’s enfinity™ technology under Bio-Mobility™ platform, combined with Gevo’s ATJ, will create a winning solution to address the growing need of sustainable decarbonization. This will also help India in achieving energy security, reducing import bill and meeting climate change goals.”

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.

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