Agri-business conglomerate Archer-Daniels-Midland (ADM) has signed a memorandum of understanding (MoU) with biofuel producer Gevo to support the production of up to 500 million gallons of sustainable aviation fuel (SAF) per year. The agreement would see ADM using Gevo's technology to transition approximately 900 million gallons of ethanol—more than half its production capacity at its facilities in Columbus, Nebraska; Cedar Rapids, Iowa; and Decatur, Illinois—into SAF and other renewable hydrocarbons.
Demand for SAF is expected to accelerate, with recent goals set by the U.S. and Europe calling for nearly four billion gallons of SAF production by 2030, and more than 45 billion gallons by 2050.
The two companies plan to work together on full commercialization plans and establish definitive deals that would allow SAF production to begin in the 2025 to 2026 timeframe.
“Our potential customer pipeline has grown to over one billion gallons,” said Gevo CEO Patrick Gruber. “By working with ADM, which already has committed to its carbon footprint, we have the opportunity to accelerate scale.” Gruber told AIN that his company’s process has the potential to deliver SAF at price parity with petroleum-based fuel when market incentivization is factored in.