Business
Gevo Inks Largest Supply Agreement To-Date for Renewable Fuels
Kolmar Deal Valued at Up to US$2.4 Billion over Eight Years ENGLEWOOD, Colo., Dec. 07, 2021 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) has a new partner:
About this update from Gevo, Inc.
[{"type":"text","content":"Kolmar Deal Valued at Up to US$2.4 Billion over Eight Years\nENGLEWOOD, Colo., Dec. 07, 2021 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) has a new partner: Kolmar Americas Inc. (“Kolmar”). Kolmar and Gevo have entered into a financeable fuel supply agreement for 45 million gallons per year (on a neat basis) of renewable, energy-dense liquid hydrocarbons that are expected to be produced from Gevo’s second Net-Zero production facility, Net-Zero 2. Kolmar is a wholly owned subsidiary of Kolmar Group AG that is a privately held service provider, manufacturer, and marketer of renewable fuels headquartered in Zug, Switzerland. The agreement with Kolmar demonstrates that Gevo is continuing to diversify its partner base geographically as it grows its presence on the global stage. The fuel supply agreement provides for Gevo to supply Kolmar with renewable hydrocarbons, including sustainable aviation fuel (“SAF”) and isooctane that is a key component of renewable premium gasoline. Gevo expects to supply 45MGPY of renewable fuels to Kolmar from its Net-Zero 2 plant that is currently being developed in the Mid-West of the United States. 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 US$300 million per year of gross revenue, including revenue from environmental benefits. With protein and corn oil co-product sales, Net-Zero 2 is estimated to generate gross revenues of approximately US$350 million per year. Over the eight years of the agreement, Net-Zero 2 all-in, gross revenue is estimated to be up to approximately US$2.8 billion, inclusive of renewable fuels and related products for the food chain. According to Raf Aviner, President of Kolmar Americas, Inc.: “In addition to our traditional businesses, Kolmar is dedicated to commercial development and optimization of leading-edge low carbon products and technologies. 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.” “With this agreement, Kolmar is investing in the future, and this kind of foresight makes for another excelle...