Gevo options 239 acres in South Dakota for a planned renewable hydrocarbon production facility as part of Trafigura contract

Gevo Inc (NASDAQ:GEVO) announced Monday that it has optioned the right to purchase nearly 239 acres of land near Lake Preston, South Dakota for a planned fuel production facility. The Englewood, Colorado-based group also said it met the initial milestone to secure control of a site by the end of this year – meeting the conditions required under the company’s binding Renewable Hydrocarbons Purchase and Sale Agreement with Trafigura Trading LLC signed in August 2020. The agreement – a long term, take or pay contract that is the largest in Gevo’s history – sees Gevo delivering nearly 25 million gallons per year of renewable hydrocarbons. The majority of the product is expected to be low-carbon premium gasoline with a smaller portion of the volume for sustainable aviation fuel, starting in 2023. READ: Gevo hails United Airlines pledge to include sustainable aviation fuel in its bid to reduce greenhouse emissions Trafigura is one of the world’s leading independent commodity trading companies with over $171 billion and over $54 billion in revenue and assets, respectively. The production facility planned for Lake Preston is contemplated to produce about 45,000,000 million gallons per year collectively of jet fuel and renewable gasoline products, Gevo said in a statement. The group plans to decide on whether to purchase the Lake Preston site in the future as part of the Citigroup led project financing. “We like the scale of plant that could be built at the Lake Preston site, it has the potential to produce large amounts of our products. It also has room to expand further, or add other businesses,” Gevo’s CEO Patrick Gruber said in a brief statement. Gevo is developing gasoline and jet fuel using renewable feedstocks that have the potential to lower greenhouse gas emissions at a meaningful scale and enhance agricultural production, including food and other related products. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas