Gevo Enters Joint Development Agreement with Southwest Iowa Renewable Energy to Measure, Report & Verify Carbon Intensity
March 16 2023 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) announced today that it has entered into
a joint development agreement with Southwest Iowa Renewable Energy
(SIRE) to measure, report and verify carbon intensity (CI) through
the entire value chain, inclusive of climate-smart agriculture
practices to lower the carbon footprint of SIRE’s product
portfolio.
Utilizing the Verity Tracking platform under Gevo's newly
created Verity Carbon Solutions business, this joint development
agreement will focus on implementing tracking technology and
developing the market for carbon inset credits that will help
farmers and biofuel producers quantify the CI reductions for their
products. This initiative plans to track reductions of CI to
produce fuels and nutritional products through the use of “climate
smart” agricultural practices, improvements in energy efficiency
and potential use of defossilization of the input energy. With
these tools in place, companies like Gevo and SIRE should then be
able to source low-carbon grain from farmers and reward them for
their contributions to overall CI reductions.
“We are excited about our partnership with SIRE to track carbon
intensity reductions through the entire value chain, creating high
quality carbon insets. Unlike carbon offsets where the carbon
reduction value is transferred to a value chain that may not be
related, the carbon inset approach here allows carbon intensity
reduction to be quantified throughout the value chain from the
bushel to the gallon to drive continuous improvement,” said Dr.
Paul Bloom, Gevo’s Chief Carbon & Innovation Officer. “For end
customers who want to reduce their carbon footprint within the
value chains in which they participate, this effort aims to provide
measurable improvement and trust in verification of those
efforts.”
Mike Jerke, SIRE CEO stated, “Farmers have always understood
that their livelihood is directly tied to the land, and they are
quick to adopt practices that benefit the soil for the long-term.
SIRE is pleased to be working alongside Gevo to introduce our
farmers to the Verity platform. This tool should allow
participating farmers to track, prove, and ultimately monetize, the
carbon reduction on their acres."
This partnership between Gevo and SIRE will provide a market
driven approach to tracking reductions of CI through the use of
climate smart agricultural practices, energy efficiency projects
and potential defossilization of the input energy for the
production of agricultural based products including biofuels, food,
animal feed, and renewable chemicals. Farmers and other value chain
participants who contribute to lowering CIwill be financially
rewarded for their efforts while companies like Gevo and SIRE are
able to continue to make improvements on the path to net-zero
carbon emissions energy, liquid transportation fuels, and renewable
chemicals.
About GevoGevo’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.
About SIRESIRE is an Iowa limited liability
company located in Council Bluffs, operating a 130 million gallon
per year ethanol plant. SIRE began production in February 2009 and
sells its ethanol, distillers grains, condensed corn distillers
syrup, and distillers corn oil primarily in the continental United
States. SIRE consumes over 44 million bushels of corn feedstock
annually from producers within a 40-mile radius of the facility.
Locally owned, SIRE provides farmers with an important market and
gives investors ownership in a facility that generates
environmentally friendly products in a sustainable way.
Forward-Looking Statements
Certain statements in this press release may constitute
“forward-looking statements” 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, Gevo’s technology, Gevo’s Verity Carbon Solutions
Tracking platform, Gevo’s agreement with SIRE, the benefits that
might accrue as a a result of Gevo’s agreement with SIRE, whether
reductions of CI will occur as anticipated by Gevo, and other
statements that are not purely statements of historical fact. These
forward-looking statements are made based on 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, 2022,
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.
Media ContactHeather L.
Manuel+1 303-883-1114PR@gevo.com
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