Petroleum fuel provider Chevron has signed a letter of intent with renewable fuel producer Gevo that would see the two companies partner to increase the supply of sustainable aviation fuel (SAF). Under the proposed deal, Chevron will invest in the development of one or more production facilities that would be operated by Gevo, using its proprietary technology to produce SAF and renewable blending components for motor gasoline.
Gevo’s products are synthesized from inedible industrial corn products. Its patented process separates the sugars from the proteins and uses them to make jet fuel, while the remainder is used for livestock feed. As a result of its investment, Chevron would receive offtake rights to market approximately 150 million gallons of sustainable fuel (mainly SAF) and other renewable fuel products a year.
“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,” said Mark Nelson, Chevron’s executive v-p of downstream and chemicals.
The agreement is subject to regulatory approvals; if consummated, SAF production under the deal is expected to commence in 2025.