Chevron, Gevo Eye Sustainable Aviation Fuel Investment

By Ashemiriogwa Emmanuel

Chevron USA Incorporated, an energy company under the umbrella of the second-largest oil company in America, Chevron Corporation, together with Biofuel company, Gevo, have today announced intent to pursue sustainable aviation fuel investment.

In a press release obtained by Business Post from the official website of Chevron, it was gathered that both companies want to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel.

Hence, this can lower the lifecycle carbon intensity of fuels used in the aviation industry as the new facilities would also produce proteins and corn oil.

The proposed collaboration will see that Gevo operates its proprietary technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity.

Chevron, while co-investing with Gevo in one or more projects, would have the right to offtake about 150 million gallons per year to market to customers.

In his comment on the proposed investment, the Executive Vice President of Downstream & Chemicals for Chevron, Mr Mark Nelson, stated that, “Chevron is providing our customers with next-generation renewable fuels that can help them lower their overall carbon footprint.

 “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.”

Highlighting Gevo’s excitement on Chevron’s willingness to co-invest in the project, its Chief Executive Officer, Mr  Patrick Gruber, was quoted as saying that, “Chevron’s advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers.”

The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions.

This also includes regulatory approval, as updates regarding the letter of intent can be found in the Current Report on Form 8-K which was filed by Gevo with the US Securities and Exchange Commission on September 9, 2021.