Gevo, Kolmar enter $2.4 billion SAF, isooctane supply agreement
Gevo Inc. and Kolmar Americas Inc. have entered into a financeable fuel-supply agreement for 45 million gallons per year of renewable liquid hydrocarbons, including sustainable aviation fuel (SAF) and isooctane—a key component of renewable gasoline—expected to be produced from Gevo’s second Net-Zero production facility, Net-Zero 2. The project is currently being developed in the Midwest, and deliveries to Kolmar would represent the entire plant output based on Net-Zero 2’s current design.
Under the fuel-supply agreement, Net-Zero 2 is expected to generate approximately $300 million per year of gross revenue, including from environmental benefits. With protein and corn oil coproduct sales, Net-Zero 2 is estimated to generate gross revenues of approximately $350 million per year. Over the eight years of the agreement, the plant’s total, gross revenue is estimated to be up to approximately $2.8 billion, according to Gevo.
“In addition to our traditional businesses, Kolmar is dedicated to commercial development and optimization of leading-edge low carbon products and technologies,” said Raf Aviner, president of Kolmar Americas. “We are excited to align Kolmar’s global supply reach, logistics, and regulatory capabilities with Gevo’s Net-Zero 2 production of cutting-edge low carbon aviation and gasoline fuels to get these advanced, sustainable products to the varied global markets that need and want them the most.”
Patrick Gruber, CEO of Gevo, added, “With this agreement, Kolmar is investing in the future, and this kind of foresight makes for another excellent partner and should make clear to our investors that we have traction in the market. We have great potential in our business system to reinvent what is possible. Our system translates well because we actively address food security with the high-value nutritional products that our process generates simultaneously as we produce our advanced renewable fuels. Both products come from the same acre of farmland and add to our environmental benefit.”
Kolmar Americas is a wholly owned subsidiary of Kolmar Group AG, a privately held service provider, manufacturer, and marketer of renewable fuels based in Zug, Switzerland. It owns American GreenFuels, a biodiesel production facility in Port of New Haven, Connecticut, considered to be the largest biodiesel plant in the Northeast.