Gevo signs option for site of new biofuel facility for Trafigura
In line with the USD1.5 billion contract with Trafigura Trading LLC in August, Gevo Inc. announced that it has signed an option to purchase the site for the new biofuels production facility near Lake Preston, South Dakota, U.S.A.
Gevo Inc. will supply the wholly-owned subsidiary of Trafigura Group Pte Ltd, one of the world’s leading independent commodity trading companies, 45,000,000 million gallons per year of renewable hydrocarbons, the majority of which is expected to be low-carbon premium gasoline with a smaller portion of the volume for sustainable aviation fuel (SAF), starting in 2023.
The agreement is a long term, take or pay contract and is the largest contract in Gevo’s history.
The agreement with Gevo will support Trafigura’s efforts to develop the market for low-carbon fuels, including low-carbon premium gasoline.
Gevo, Inc. has optioned the right to purchase approximately 239 acres of land near Lake Preston and has met the initial milestone to secure control of a site by the end of this year that meets the conditions required by the contract.
Gevo intends to make a decision on whether to purchase the Lake Preston site in the future as part of the Citigroup-led project financing.
“We like the scale of the plant that could be built at the Lake Preston site, it has the potential to produce large amounts of our products. It also has room to expand further, or add other businesses,” said Patrick R. Gruber, Gevo chief executive officer.
Gevo is commercializing the next generation of renewable premium gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). For more information, visit www.gevo.com