Story ID: 060Aug18
Avfuel Forges Biofuel Deal
By: Curt Epstein
Caption: Through the agreement, Avfuel will become the exclusive aviation fuel distributor for sustainable fuel producer Gevo.
Word Count: 596
Avfuel has signed an agreement with biofuel provider Gevo, following the release of the “Business Aviation Guide to the Use of Sustainable Alternative Jet Fuel (SAJF),” at EBACE in May. The paper, prepared by a coalition of industry organizations, presents an overview of emerging alternative fuel options and a roadmap for their development and adoption. Under the deal, which took effect July 1, Avfuel became Gevo’s exclusive sustainable jet fuel dealer to business aviation at the locations it serves. Avfuel has taken an interest in biofuels since 2012, when it formed the Avfuel Technology Initiatives Corporation.

According to Avfuel owner, president, and CEO Craig Sincock, the agreement will help his company meet customer demand for a low-carbon, sustainable alternative jet fuel (SAJF), thus filling a gap in the industry’s supply chain.

“Gaining reliable access to product that’s currently in limited supply was an important benchmark for our alternative fuel initiative,” said Sincock. “Our agreement with Gevo is a notable component in our overall strategy to support our industry’s commitment to reduce carbon emissions and enhance sustainability to mitigate its effect on climate change.”

For Colorado-based Gevo, which is looking to expand its capacity and develop a large-scale plant by 2022 with a production capacity of approximately 10 to 12 million gallons a year this represents an important step along that path.

“It’s important because Avfuel is a significant company trying to serve their markets and they recognize that we have a legitimate, real, live, clean jet fuel that we can deliver,” Gevo CEO Patrick Gruber told AIN. “They are willing to step up and do an offtake agreement. That’s a big deal for us.”

Initially, Gevo will supply SAJF from its current, smaller-scale hydrocarbon processing plant in Silsbee, Texas, which it operates in partnership with South Hampton Resources. “[Avfuel has] a lot of customer demand and interest for 'clean and green' jet fuel. In fact, the world at large is interested in 'clean and green' jet fuel because there just aren’t that many people who can deliver it,” explained Gruber. “We happen to be one of them.”

Once the larger production facility, which will likely be located in Minnesota, is up and running, Avfuel could purchase up to 1 million gallons of the concentrated SAJF a year, which would equate to millions of gallons of finished ASTMD1655 jet-fuel product when blended with conventional jet fuel.

With the agreement in place, Avfuel will turn its attention to logistics, such as deciding where the SAJF will be blended, and how much of the Avfuel network it will go to in the coming years.

Keith Sawyer, who heads the company’s technology initiatives team and serves as its manager of alternative fuels, played a significant role in drafting the sustainable jet fuel guide unveiled in May. “[The] agreement with Gevo is a significant step for the business and general aviation industry in bringing sustainable alternative jet fuel to market and demonstrates Avfuel’s dedication to leading the movement on alternative fuels, helping the industry meet demands on carbon-emission reduction and sustainability for a cleaner environment,” he told AIN.” Though it’s currently in limited supply, this agreement means SAJF is now a reality for the general aviation sector of our industry. The next important step is to develop the necessary infrastructure to support the supply chain for SAJF and encourage an investment in the production of the product and its adoption by general aviation on a larger scale.”
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