Gevo, Inc. (NASDAQ: GEVO) and Praj Industries Ltd. have announced
that they have signed a binding, definitive Master Framework
Agreement (MFA) to collaborate on providing renewable, low carbon,
low particulate, Sustainable Aviation Fuel (SAF) and renewable
premium gasoline in India and neighboring countries. This follows
an earlier announcement in April 2019 between both parties
regarding the commercialization of renewable isobutanol, SAF and
renewable premium gasoline.
Gevo will license its technology and Praj will
provide technology, plant equipment and EPC services to sugar mills
and ethanol plants to produce renewable isobutanol from 1G
feedstock (cane juice, cane molasses, sugar syrup, etc.) and 2G
feedstock (cellulosic biomass like straws, bagasse, etc.) The
renewable isobutanol will be aggregated and transferred to various
refineries. Gevo will also license its technology and Praj will
provide technology, plant equipment and EPC services to refineries
for converting renewable isobutanol into Sustainable Aviation Fuel
and premium gasoline through the ASTM-approved pathway of
Alcohol-to-Jet (ATJ).
According to Apte Research Group, University of
California, Berkley, particle air pollution in South Asia ranks
among the most severe in the world. In India alone, hundreds of
millions of people are exposed to PM2.5 concentrations, an order of
magnitude greater than World Health Organization guidelines. The
use of SAF, blended with aviation turbine fuel, can contribute
significantly to mitigating the risk associated with particulate
air pollution.
SAF should find applications in commercial
aviation as well as in the defense sector in India. Praj and Gevo
supplied the sample of SAF produced by Gevo to the Indian Air Force
(IAF). The Indian Air Force tested the sample and found it to be
meeting the desired specifications as per relevant ASTM standards.
Further tests are underway at IAF.
“Jet fuel and gasoline made with our technology
are made from renewable resources, reduce greenhouse gasses, and
eliminates particulates,” said Patrick Gruber, CEO of Gevo. “We are
pleased to be working with Praj, moving down the commercialization
path and that the Indian Air Force has the vision to see that the
domestic supply of jet fuel makes sense. We also recognize that
products like ours have the potential to reduce air pollution.”
Speaking on the occasion, Dr. Pramod Chaudhari,
Executive Chairman, Praj Industries, said, “We are happy to partner
with Gevo, a leading renewable chemicals and advanced biofuels
company to expand the commercial-scale use of SAF in India. Praj’s
enfinityTM technology under Bio-MobilityTM platform, combined with
Gevo’s ATJ, will create a winning solution to address the growing
need of sustainable decarbonization. This will also help India in
achieving energy security, reducing import bill and meeting climate
change goals.”
Pursuant to the terms of the MFA, Gevo is
providing a license to Praj, which will allow the latter to carry
out basic engineering and design package services, supply
equipment, build plants and use jointly developed process design
package to produce renewable isobutanol for plant operators who are
licensed by Gevo.
In addition, Gevo is also providing a license to
Praj, which will allow the latter to carry out basic engineering
and design package services, supply equipment and build plants to
convert renewable isobutanol into renewable gasoline and SAF for
plant operators who are licensed by Gevo.
A copy of the MFA has been filed with the U.S.
Securities and Exchange Commission on Form 8-K.
About GevoGevo is
commercializing the next generation of renewable premium gasoline,
jet fuel and diesel fuel with the potential to achieve zero carbon
emissions, addressing the market need of reducing greenhouse gas
emissions with sustainable alternatives. 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 lifecycle). 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. Learn more at our website: www.gevo.com
About Praj Industries
Limited:
Praj, India’s most accomplished process
engineering company in the Bioeconomy, is driven by innovation and
integration capabilities. Over the past three decades, Praj has
focused on the environment, energy, and agri-process industry, with
over 750 customer references spanning 75 countries across 5
continents.
Bio-mobilityTM and Bio-PrismTM are the mainstays
of Praj’s contribution to the global Bioeconomy. The Bio-MobilityTM
portfolio offers technology solutions globally to produce renewable
transportation fuel, thus ensuring sustainable decarbonization
through circular bio-economy. The company’s Bio-PrismTM portfolio
comprises of renewable chemicals and materials solutions promise
sustainability while reimagining nature. Praj Matrix, the
state-of-the-art R&D facility, forms the backbone for the
company’s endeavors towards a clean energy-based Bioeconomy.
Praj’s diverse portfolio comprises Bio-energy
plants, Zero liquid discharge plants, Critical process equipment
& skids for oil & gas industries, Breweries and High purity
water systems. Led by an accomplished and caring leadership, Praj
is a socially responsible corporate citizen. Praj is listed on the
Bombay and National Stock Exchanges of India. More information at
www.praj.net
Forward-Looking
StatementsCertain statements in this press release may
constitute “forward-looking statements” 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 Gevo’s
partnership with Praj, Master Framework Agreement (MFA), Gevo’s
technology, Praj’s technology, demand for Gevo’s isobutanol, ATJ
and isooctane in India and elsewhere and the timing of activities
contemplated in this press release, and other
statements that are not purely statements of historical fact. These
forward-looking statements are made based on 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, 2019
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.
Investor and Media Contact +1 720-647-9605
IR@gevo.com |
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