Gunvor and ClearShift partner for zero-carbon diesel and chemicals

Gunvor USA LLC, a division of Gunvor Group and one of the world’s leading independent commodities trading houses, has announced a significant partnership with Dallas, Texas-based ClearShift LLC. This collaboration, marked by a Letter of Intent, focuses on the supply of feedstock and the offtake of low-carbon diesel and carbon-neutral chemicals, aligning with Gunvor’s strategy to expedite the energy transition.

ClearShift is a pioneer in producing ultra-pure, environmentally friendly fuels and specialty chemicals using advanced gas-to-liquids (GTL) technology. This technology converts methane, flare gas, and CO2 into low-carbon fuels and non-combustible carbon-neutral specialty chemicals, effectively removing associated CO2 from the atmosphere. ClearShift’s approach transforms pollution into profit while reducing the carbon footprint of companies.

The Letter of Intent encompasses a 10-year agreement for the supply of all natural gas and renewable natural gas. It also includes the offtake of low-carbon diesel and high-grade carbon-neutral chemicals from ClearShift’s facility, strategically located near the chemical corridor in the U.S. state of Louisiana.

ClearShift’s facility is set to consume approximately 55,000 MMBtu (million British thermal units) of natural gas and renewable natural gas daily. It will produce around 75 million gallons per year of low-carbon renewable diesel and zero-carbon, high-grade specialty chemicals. Additionally, ClearShift produces clean hydrogen, utilised in its non-combustion production process.

“ClearShift is at the forefront of the energy transition, producing pure, low-carbon fuels and carbon-neutral specialty chemicals from readily available hydrocarbon supplies. We’re excited to build a long-term relationship that enhances the variety and quality of fuels and chemicals for our customers,” said Shane Foster, Energy Transition Lead – Americas at Gunvor.

John Stephenson, CEO of ClearShift, also shared his excitement. “Our relationship with Gunvor represents a significant leap for our business. It demonstrates how sustainable technology companies and leading commodity trading houses can collaborate to ensure the success of sustainable infrastructure, especially with the new incentives available in the Inflation Reduction Act,” he said.