Benzinga | Oct 25, 2021 02:55PM EDT

ADM Signs MoU With Gevo For Aviation Fuel Production

* Archer-Daniels-Midland Co (NYSE:ADM) has signed a memorandum of understanding (MoU) with Gevo Inc (NASDAQ:GEVO) for aviation fuel production. The financial terms were not disclosed.

* The MoU will concentrate on producing both ethanol and isobutanol that would then be transformed into renewable, low carbon-footprint hydrocarbons, including SAF, using Gevo's processing technology and capabilities.

* The company expects about 900 million gallons of ethanol produced at dry mills to be processed, resulting in about 500 million gallons of SAF and other renewable hydrocarbons.

* ADM noted isobutanol would be produced at a proposed new facility in Decatur that would employ its carbon capture and sequestration capabilities.

* Price Action: ADM shares are trading higher by 0.66% at $66.66 on the last check Monday.