Chevron U.S.A. Inc., a subsidiary of Chevron Corporation
(NYSE: CVX), and Gevo, Inc. (NASDAQ: GEVO) today announced a letter
of intent to jointly invest in building and operating one
or more new facilities that would process inedible corn to
produce sustainable aviation fuel, which can lower the lifecycle
carbon intensity of fuels used in the aviation industry. The new
facilities would also produce proteins and corn oil.
Through the proposed collaboration, Gevo would operate its
proprietary technology to produce sustainable aviation fuel and
renewable blending components for motor gasoline to lower its
lifecycle carbon intensity. In addition to co-investing with Gevo
in one or more projects, Chevron would have the right to offtake
approximately 150 million gallons per year to market to
customers.
“Chevron is providing our customers with next-generation
renewable fuels that can help them lower their overall carbon
footprint,” said Mark Nelson, executive vice president of
Downstream & Chemicals for Chevron. “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.”
“We are pleased to collaborate with Chevron, who is willing to
co-invest in building out Gevo's capacity to produce renewable,
high-performing hydrocarbons that can be used in existing equipment
and engines. Chevron’s advantaged market position would allow it to
offtake production from this venture, helping to place sustainable
aviation fuel with airline customers,” commented Dr. Patrick
Gruber, chief executive officer of Gevo.
The proposed investment is subject to the negotiation of
definitive agreements with customary closing conditions, including
regulatory approval. Further information regarding the letter
of intent between Gevo and Chevron U.S.A. can be found in the
Current Report on Form 8-K filed by Gevo with the U.S. Securities
and Exchange Commission on September 9, 2021.
Contacts
Tyler Kruzich, Chevron Phone:
925-549-8686 Email: tkruzich@chevron.com
Gevo Investor and Media ContactPhone: (720)
647-9605Email: IR@gevo.com
About Chevron
Chevron is one of the world’s leading integrated energy
companies. We believe affordable, reliable and ever-cleaner energy
is essential to achieving a more prosperous and sustainable world.
Chevron produces crude oil and natural gas; manufactures
transportation fuels, lubricants, petrochemicals and additives; and
develops technologies that enhance our business and the
industry. To advance a lower-carbon future, we are focused on cost
efficiently lowering our carbon intensity, increasing renewables
and offsets in support of our business, and investing in low-carbon
technologies that enable commercial solutions. More information
about Chevron is available at www.chevron.com.
About Gevo, Inc.
Gevo’s mission is to transform renewable energy and carbon into
energy-dense liquid hydrocarbons. These liquid hydrocarbons can be
used for drop-in transportation fuels such as gasoline, jet fuel
and diesel fuel, that when burned have potential to yield net-zero
greenhouse gas emissions when measured across the full life cycle
of the products. Gevo uses low-carbon renewable resource-based
carbohydrates as raw materials, and is in an advanced state of
developing renewable electricity and renewable natural gas for use
in production processes, resulting in low-carbon fuels with
substantially reduced carbon intensity (the level of greenhouse gas
emissions compared to standard petroleum fossil-based fuels across
their life cycle). Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven, patented
technology enabling the use of a variety of low-carbon sustainable
feedstocks to produce price-competitive low-carbon products such as
gasoline components, jet fuel and diesel fuel yields the potential
to generate project and corporate returns that justify the
build-out of a multi-billion-dollar business.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI. Learn more at Gevo’s
website: www.gevo.com
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
This news release contains forward-looking
statements relating to Chevron’s operations that are based on
management's current expectations, estimates and projections about
the petroleum, chemicals and other energy-related industries. Words
or phrases such as “anticipates,” “expects,” “intends,” “plans,”
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“focus,” “on track,” “goals,” “objectives,” “strategies,”
“opportunities,” “poised,” “potential” and similar expressions are
intended to identify such forward-looking statements. These
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and other factors, many of which
are beyond the company’s control and are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
The reader should not place undue reliance on these forward-looking
statements, which speak only as of the date of this news release.
Unless legally required, Chevron undertakes no obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Among the important factors that could cause
actual results to differ materially from those in the
forward-looking statements are: changing crude oil and natural gas
prices and demand for our products, and production curtailments due
to market conditions; crude oil production quotas or other actions
that might be imposed by the Organization of Petroleum Exporting
Countries and other producing countries; public health crises, such
as pandemics (including coronavirus (COVID-19)) and epidemics, and
any related government policies and actions; changing economic,
regulatory and political environments in the various countries in
which the company operates; general domestic and international
economic and political conditions; changing refining, marketing and
chemicals margins; the company’s ability to realize anticipated
cost savings, expenditure reductions and efficiencies associated
with enterprise transformation initiatives; actions of competitors
or regulators; timing of exploration expenses; timing of crude oil
liftings; the competitiveness of alternate-energy sources or
product substitutes; technological developments; the results of
operations and financial condition of the company’s suppliers,
vendors, partners and equity affiliates, particularly during
extended periods of low prices for crude oil and natural gas during
the COVID-19 pandemic; the inability or failure of the company’s
joint-venture partners to fund their share of operations and
development activities; the potential failure to achieve expected
net production from existing and future crude oil and natural gas
development projects; potential delays in the development,
construction or start-up of planned projects; the potential
disruption or interruption of the company’s operations due to war,
accidents, political events, civil unrest, severe weather, cyber
threats, terrorist acts, or other natural or human causes beyond
the company’s control; the potential liability for remedial actions
or assessments under existing or future environmental regulations
and litigation; significant operational, investment or product
changes undertaken or required by existing or future environmental
statutes and regulations, including international agreements and
national or regional legislation and regulatory measures to limit
or reduce greenhouse gas emissions; the potential liability
resulting from pending or future litigation; the company's ability
to achieve the anticipated benefits from the acquisition of Noble
Energy, Inc.; the company’s future acquisitions or dispositions of
assets or shares or the delay or failure of such transactions to
close based on required closing conditions; the potential for gains
and losses from asset dispositions or impairments; government
mandated sales, divestitures, recapitalizations, taxes and tax
audits, tariffs, sanctions, changes in fiscal terms or restrictions
on scope of company operations; foreign currency movements compared
with the U.S. dollar; material reductions in corporate liquidity
and access to debt markets; the receipt of required Board
authorizations to pay future dividends; the effects of changed
accounting rules under generally accepted accounting principles
promulgated by rule-setting bodies; the company’s ability to
identify and mitigate the risks and hazards inherent in operating
in the global energy industry; and the factors set forth under the
heading “Risk Factors” on pages 18 through 23 of the company's 2020
Annual Report on Form 10-K and in other subsequent filings with the
U.S. Securities and Exchange Commission. Other unpredictable or
unknown factors not discussed in this news release could also have
material adverse effects on forward-looking statements.
Forward-Looking Statements Regarding Gevo,
Inc.
Certain statements in this press release may constitute
“forward-looking statements” regarding Gevo, Inc. (“Gevo”) within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements relate to a variety of
matters, including, without limitation, statements related to
expectations of the agreements between Gevo and Chevron, the
potential investment in Gevo’s projects, and the volume of
sustainable aviation fuel to be produced under the agreement,
Gevo’s technology, Gevo’s products, and other statements that are
not purely statements of historical fact. These forward-looking
statements are made on the basis of the current beliefs,
expectations and assumptions of the management of Gevo and are
subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. All such forward-looking statements speak only as of
the date they are made, and Gevo undertakes no obligation to update
or revise these statements, whether as a result of new information,
future events or otherwise. Although Gevo believes that the
expectations reflected in these forward-looking statements are
reasonable, these statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements. For a
further discussion of risks and uncertainties that could cause
actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of Gevo in general, see the risk disclosures in the Annual
Report on Form 10-K of Gevo for the year ended December 31, 2020,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the U.S. Securities and Exchange Commission by Gevo.
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