ADM, Gevo sign preliminary deal to produce up to half a-billion gallons of SAF
Agri-giant Archer Daniels Midland Co. and Gevo Inc. announced Oct. 25 that they have signed a memorandum of understanding (MOU) to support the production of sustainable aviation fuel (SAF) and other low-carbon fuels.
The agreement considers production of both ethanol and isobutanol for conversion into SAF and other low-carbon fuels 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,” Gevo stated. “The isobutanol is expected to be produced at a proposed new facility in Decatur that would employ ADM’s carbon capture and sequestration capabilities.”
Juan Luciano, ADM chairman and CEO, said, “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.”
Gevo CEO Patrick Gruber said Gevo’s potential customer-contract “pipeline” has grown to more than a billion gallons.
The company noted that 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.
ADM and Gevo are working to determine full commercialization plans and expect definitive agreements to enable production of SAF by 2025-’26.