Benzinga | Sep 9, 2021 09:12AM EDT

Chevron And Gevo Announce Intent To Pursue Sustainable Aviation Fuel Investment

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:CVX), and Gevo, Inc. (NASDAQ:GEVO) today announced a letter of intent to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel, which can lower the lifecycle carbon intensity of fuels used in the aviation industry. The new facilities would also produce proteins and corn oil.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210909005196/en/

Through the proposed collaboration, Gevo would operate its proprietary technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity. In addition to co-investing with Gevo in one or more projects, Chevron would have the right to offtake approximately 150 million gallons per year to market to customers.

"Chevron is providing our customers with next-generation renewable fuels that can help them lower their overall carbon footprint," said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron. "This potential investment leverages Gevo's innovative approach to producing sustainable aviation fuel, complementing other renewable fuels investments we are making as part of our higher returns, lower carbon strategy."

"We are pleased to collaborate with Chevron, who is willing to co-invest in building out Gevo's capacity to produce renewable, high-performing hydrocarbons that can be used in existing equipment and engines. Chevron's advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers," commented Dr. Patrick Gruber, chief executive officer of Gevo.

The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval. Further information regarding the letter of intent between Gevo and Chevron U.S.A. can be found in the Current Report on Form 8-K filed by Gevo with the U.S. Securities and Exchange Commission on September 9, 2021.