ADM (NYSE: ADM), a global leader in nutrition and agricultural
origination and processing, and Gevo, Inc., (NASDAQ: GEVO), a
pioneer in transforming renewable energy into low carbon,
energy-dense liquid hydrocarbons, announced today that they have
signed a memorandum of understanding (MoU) to support the
production of sustainable aviation fuel (SAF) and other low
carbon-footprint hydrocarbon fuels.
The MoU contemplates the production of both ethanol and
isobutanol that would then be transformed into renewable low
carbon-footprint hydrocarbons, including SAF, using Gevo’s
processing technology and capabilities. About 900 million gallons
of ethanol produced at ADM’s dry mills in Columbus, Nebraska, and
Cedar Rapids, Iowa, as well as its Decatur, Illinois, complex, is
expected to be processed utilizing this technology, resulting in
approximately 500 million gallons of SAF and other renewable
hydrocarbons. The isobutanol is expected to be produced at a
proposed new facility in Decatur that would employ ADM’s carbon
capture and sequestration capabilities.
“The potential conversion of 900 million gallons of ethanol –
more than half of our production capacity – to serve growing demand
for sustainable aviation fuel would represent a major step in the
continued evolution of our Carbohydrate Solutions business to focus
increasingly on new, high-growth opportunities,” said ADM Chairman
and CEO Juan Luciano. “Carbohydrate Solutions is unlocking new
value and meeting customer needs through the growth of our
BioSolutions platform, with agreements like our LG Chem MoU;
sustainable solutions supported by our carbon capture capabilities,
like our net-zero carbon milling footprint in the U.S.; and the
completion of our dry mill review, with the sale of our Peoria
facility and this exciting collaboration with Gevo. Equally
important, we’re continuing to live our purpose, with our entry
into SAF representing another step in our strategic efforts to
advance decarbonization and use our integrated value chain to
deliver more sustainable, environmentally friendly products and
services.”
“Our potential customer contract pipeline has grown to over 1
billion gallons,” said Gevo CEO Patrick Gruber, Ph.D. “By working
with ADM, who already has committed to reducing their carbon
footprint, we have the opportunity to accelerate scale. The
technology to convert low carbon ethanol and isobutanol into SAF by
Gevo is well developed and ready for world scale-commercialization.
We look forward to working with ADM in the pursuit of Net-Zero
fuels.”
Demand for SAF is expected to increase as major U.S. airlines,
airports, shippers and the U.S. government have agreed to work
together to advance the use of cleaner sustainable fuels. The U.S.
and the EU have set goals that together would support almost 4
billion gallons of annual SAF production in 2030, and more than 45
billion by 2050.
The companies intend to work together to determine full
commercialization plans and enter into definitive agreements
enabling a timeline such that production of SAF can begin in the
2025-2026 timeframe.
Media ContactsADMJackie Anderson
media@adm.com312-634-8484
Gevo, Inc.Heather L. ManuelIR@gevo.com 720-418-0085
About ADMAt ADM, we unlock the power of nature
to provide access to nutrition worldwide. With industry-advancing
innovations, a complete portfolio of ingredients and solutions to
meet any taste, and a commitment to sustainability, we give
customers an edge in solving the nutritional challenges of today
and tomorrow. We’re a global leader in human and animal nutrition
and the world’s premier agricultural origination and processing
company. Our breadth, depth, insights, facilities and logistical
expertise give us unparalleled capabilities to meet needs for food,
beverages, health and wellness, and more. From the seed of the idea
to the outcome of the solution, we enrich the quality of life the
world over. Learn more at www.adm.com.
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 also plans to
take advantage of decarbonization via geological sequestration in
the future. 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
Forward-Looking Statements Regarding ADMSome of
the above statements constitute forward-looking statements. ADM’s
filings with the SEC provide detailed information on such
statements and risks and should be consulted along with this
release. To the extent permitted under applicable law, ADM assumes
no obligation to update any 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 the MOU, the demand for SAF and other hydrocarbon fuels
contemplated by the MOU, whether Gevo and ADM will enter into
legally binding, definitive agreements to effect the transactions
contemplated by the MOU, Gevo’s potential customer contract
pipeline, Net-Zero fuels, the gallons of SAF contemplated to be
produced under the MOU, 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.
Source: corporate release
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