Gevo signs MOU for German plant, amends SAF off-take agreement
Gevo Inc. in late February announced it has signed a memorandum of understanding (MOU) to develop a renewable hydrocarbon plant in Germany and has amended an agreement with a European airline for an increased off-take of sustainable aviation fuel (SAF).
Gevo on Feb. 22 announced that it has signed an agreement with Scandinavian Airlines System to increase SAS’s minimum purchase obligation to purchase SAF to 5 million gallons per year. Gevo and SAS signed an original fuel sales agreement in October 2019.
Under the amended agreement, Gevo said it expects to supply SAS with SAF beginning in 2024. The fuel is expected to be produced at Gevo’s proposed Net-Zero 2 Project.
“With this amendment, SAS has significantly increased the amount of SAF that it is willing to purchase from Gevo,” said Patrick Gruber, CEO of Gevo. “This amendment is evidence of the strong and growing demand for Gevo’s renewable hydrocarbon products. We expect to ink additional offtake agreements later this year. SAS have a vision and plan that they are executing, even in spite of the global pandemic. This additional volume will help Gevo grow its business and hopefully accelerate making real Gevo’s Net-Zero 2 plant.”
Two days later, on Feb. 24, Gevo announced it has signed a project MOU with HCS Group to develop and build a 22 MMgy renewable hydrocarbon facility at HCS Group’s site in Speyer, Germany. The proposed project would utilize Gevo’s SAF technology. The facility is currently expected to be operational by late 2024.
“This project, developed in technology partnership with Gevo, is a key element of HCS Group’s strategy and our aspiration to be a perpetual pioneer in the area of high-value hydrocarbons, while making a clear contribution to defossilization and the reduction of greenhouse gas emissions,” said Henrik Krüpper, CEO of HCS Group. “This is a unique opportunity to enter the SAF market as the first commercial producer in Germany, building on our market success with renewable hydrocarbons. We are excited to enable our customers in the aviation, premium fuels and personal care industries with bio-based solutions to meet their sustainability goals. Using our existing infrastructure in Speyer including our new hydrogenation plant allows us to minimize time-to-market, certification and approval processes, and costs for this first-of-its-kind project.”