OAKHURST, N.J. (DTN) -- Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, and Gevo Inc. on Thursday announced a letter of intent to jointly invest in building and operating one or more facilities that would process inedible corn to produce sustainable aviation fuels. The new facilities would also produce proteins and corn oil.
Through the proposed collaboration, Gevo would operate its proprietary technology to produce sustainable aviation fuel and renewable blending components for motor gasoline to lower its lifecycle carbon intensity. In addition to coinvesting with Gevo in one or more projects, Chevron would have the right to offtake approximately 150 million gallons per year to market to customers.
The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval.
"Chevron is providing our customers with next-generation renewable fuels that can help them lower their overall carbon footprint," said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron. Patrick Gruber, CEO of Gevo, said: "We are pleased to collaborate with Chevron, who is willing to co-invest in building out Gevo's capacity to produce renewable, high-performing hydrocarbons that can be used in existing equipment and engines. Chevron's advantaged market position would allow it to offtake production from this venture, helping to place sustainable aviation fuel with airline customers."
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