Gevo Signs Master Services Agreement with McDermott for Sustainable Aviation Fuel Facilities
July 24 2023 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce it entered into a
Master Services Agreement (MSA) with a subsidiary of McDermott
International, Ltd to provide front end engineering and early
planning services for Gevo’s development of multiple sustainable
aviation fuel facilities in North America. The first facility,
Net-Zero 1, is expected to be located near Lake Preston, South
Dakota. The Net-Zero 1 plant is expected to produce up to 65
million gallons of sustainable aviation fuel (SAF), diesel,
renewable gasoline that, when consumed, is designed to have a
lifecycle net-zero greenhouse gas footprint.
Under the scope of the MSA, McDermott will provide engineering,
execution planning and pricing for the engineering, procurement,
and construction (EPC) phase of Gevo’s Net-Zero 1 project. The MSA
is expected to lead to a final EPC agreement with Gevo for its
Net-Zero 1 project to be finalized in coordination with the timing
of Gevo’s financing activities for its Net-Zero 1 project.
"Gevo's Net-Zero Plant Design with its focus on carbohydrates as
feedstock, has been carefully chosen for its exceptional
cost-effectiveness, reliability, and scalability to meet the
surging demand for sustainable aviation fuel and renewable
hydrocarbons. This MSA is the first step towards adding McDermott
as a project EPC partner. In addition to Axens, Praj, and Fluid
Quip, adding McDermott to our team, fortifies further our
capabilities in project execution and modularization, especially
when teamed with Praj. In an increasingly challenging project
environment over the past years, this collaboration is designed to
ensure we stay on track, manage costs, execute our NZ-1 project,
and be capable of executing additional NZ projects,” stated Dr.
Chris Ryan, President and Chief Operating Officer of Gevo.
“Gevo is a premier provider in the fast-growing sustainable
aviation fuel market. This agreement marks the commencement of a
collaborative relationship through which we will support Gevo’s
low-cost delivery and speed-to-market goals for its novel
alcohol-to-jet process design which incorporates Axen’s
ethanol-to-jet process,” said Vaseem Khan, Senior Vice President of
McDermott. “We believe we have the experience and expertise to
deliver a standardized, modularized, and repeatable design for this
and Gevo’s future Net-Zero projects.”
The Net-Zero 1 plant will not only contribute to sustainable
aviation fuel production but also has the potential to generate 550
million pounds of high-value nutritional products annually.
Electricity needed to power the plant will come from wind energy,
ensuring a sustainable and environmentally friendly approach to
fuel production. Additionally, renewable natural gas (RNG) from
captured methane emissions of manure from dairy cattle and
livestock may be used to meet the thermal energy needs of the
plant, making the fuel production even more sustainable.
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 it possesses the technology and know-how to convert various
carbohydrate feedstocks through a fermentation process into
alcohols and then transform the alcohols into renewable fuels and
materials, through a combination of its own technology, know-how,
engineering, and licensing of technology and engineering from Axens
North America, Inc., which 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 McDermottMcDermott is a premier,
fully-integrated provider of engineering and construction solutions
to the energy industry. Our customers trust our technology-driven
approach engineered to responsibly harness and transform global
energy resources into the products the world needs. From concept to
commissioning, McDermott's innovative expertise and capabilities
advance the next generation of global energy
infrastructure—empowering a brighter, more sustainable future for
us all. Operating in over 54 countries, McDermott's locally-focused
and globally-integrated resources include more than 30,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. To learn more,
visit www.mcdermott.com.
Forward Looking Statement
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, the MSA, our Net-Zero projects, any future agreements
with McDermott, 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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