Chevron USA, a subsidiary of Chevron Corporation, and Gevo announced a letter of intent to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel, which can lower the lifecycle carbon intensity of fuels used in the aviation industry. 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 co-investing 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.
Earlier this month, Chevron made headlines when it joined Delta Air Lines and Google in announcing a memorandum of understanding (MOU) to track sustainable aviation fuel test batch emissions data using cloud-based technology. The companies hope to create a common, more transparent model for analyzing potential greenhouse gas emissions reductions that could then be adopted by organizations considering SAF programs. Through this project, Chevron plans to produce a test batch of SAF at its El Segundo Refinery and to sell SAF to Delta at Los Angeles International Airport (LAX), a major global hub for Delta’s fleet.