Gevo, Inc. has announced that it has entered into a heads of agreement with Deutsche Lufthansa AG (Lufthansa) to supply Gevo’s alcohol to jet fuel (ATJ) from its first commercial hydrocarbons facility, intended to be built in Luverne, MN.
The terms of the agreement contemplate Lufthansa purchasing up to 8 million gal./y of ATJ from Gevo, or up to 40 million gal. over the 5 year life of the offtake agreement.
The heads of agreement establishes a selling price that is expected to allow for an appropriate level of return on the capital required to build-out Gevo’s first commercial scale hydrocarbons facility. The heads of agreement is non-binding and is subject to completion of a binding off-take agreement and other definitive documentation between Gevo and Lufthansa, expected to be completed in the next few months.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/08092016/gevo-signs-hoa-with-lufthansa-for-renewable-jet-fuel-4048/