Gevo and Praj to Commercialize Sustainable Aviation Fuel in India (2022)

| Source: Gevo, Inc.

ENGLEWOOD, Colo., Aug. 18, 2020 (GLOBE NEWSWIRE) -- 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.

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“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.

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A copy of the MFA has been filed with the U.S. Securities and Exchange Commission on Form 8-K.

About Gevo
Gevo 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.

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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 Statements
Certain 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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FAQs

Which company makes sustainable aviation fuel? ›

We are SkyNRG – a global leader in making flying more sustainable. We know that sustainable aviation fuel (SAF) is integral for the aviation industry to meet its 2050 net zero target.

What is a 100% sustainable fuel? ›

It means that the engines do not add anything to the carbon dioxide in the atmosphere.

Is sustainable aviation fuel really sustainable? ›

Burning SAF doesn't eliminate aircraft CO2 emissions. Chemically, it's nearly identical to normal fuel; it doesn't change how jet engines work. Rather, it does provide some sustainability because it balances the carbon emissions produced during flight with carbon absorbed during production.”

How does gevo make fuel? ›

Gevo has taken an existing ethanol plant and converted it to an isobutanol plant, rather than requiring green-field construction that is expensive and carbon intensive. Gevo will use wind turbines to power its isobutanol plant, to eliminate the need for electricity generated on the grid using fossil fuels.

Which company supplies aviation fuel in India? ›

Bharat Petroleum Corporation Limited (BPCL) is pioneer in providing aviation fuel services in India.

Which airline uses sustainable aviation fuel first? ›

Stockholm, 21 June 2022 – Today, regional aircraft manufacturer ATR, Swedish airline Braathens Regional Airlines and sustainable aviation fuel (SAF) supplier Neste supplier Neste collaborated to enable the first ever 100% SAF-powered test flight on a commercial aircraft.

What is the cost of sustainable aviation fuel? ›

After all, the cost is a prime reason why several airlines have been slow in adopting SAF. In 2020, the overall cost of jet fuel was $0.5 per liter. Meanwhile, the cost of SAF was $1.1 per liter. So, SAF was more than double the price of conventional jet fuel.

What is sustainable aviation fuel made from? ›

What is SAF made from? SAF can be produced from a variety of sustainable resources, also known as feedstocks. This includes forestry and agricultural waste, used cooking oil, carbon captured from the air, and green hydrogen.

What are the 3 grades of fuel? ›

Retail gasoline stations in the United States sell three main grades of gasoline based on the octane level: Regular (the lowest octane fuel–generally 87) Midgrade (the middle range octane fuel–generally 89–90) Premium (the highest octane fuel–generally 91–94)

What are the 4 pillars of aviation sustainability? ›

They are then using a 4 pillar strategy to achieve these goals; the four pillars are, new technology, more efficient operations, improved infrastructure and global market based measures for aviation emissions (Gill M. , 2015).

Why is sustainable aviation important? ›

Sustainable aviation fuels have great potential for securing the sustainable growth of air travel as they could reduce CO2 emissions by around 80% compared with fossil fuels, without the need to radically change the fuel supply systems or engines of aircraft.

Why is sustainable aviation fuel expensive? ›

Because SAF is relatively new, the industry is still building facilities to scale up production. Less is available. Supply is low, which pushes prices higher. Currently, global SAF production is a miniscule 26.4 million gallons a year—about 0.1 percent of all aviation fuel.

What is the future for Gevo? ›

The 3 analysts offering 12-month price forecasts for Gevo Inc have a median target of 10.00, with a high estimate of 18.00 and a low estimate of 10.00. The median estimate represents a +339.56% increase from the last price of 2.28.

Does Gevo produce ethanol? ›

Gevo has purchased an ethanol production facility in Luverne, Minnesota. This plant is expected to provide 18 million gallons per year of production capacity for chemicals and fuels customers.

What is the price target for Gevo? ›

Stock Price Targets
High$18.00
Median$10.00
Low$10.00
Average$12.67
Current Price$2.2800

Who is the biggest supplier of jet fuel? ›

The United States of America is the top country by output of jet fuel in the world. As of June 2022, output of jet fuel in the United States of America was 1,665.2 thousand barrels per day. The top 5 countries also includes Republic of Korea, India, Netherlands, and Japan.

What are the two types of aviation fuel? ›

Shell Aviation fuels fall into two basic groups: Aviation gasoline – Used in reciprocating or piston engines. Aviation turbine fuels (jet fuels) – Used in turbo-fan, turbo-jet, and turbo-prop engines.

Where does India buy its fuel from? ›

The USA along with the top-3 countries of Iraq, Saudi Arabia & UAE make up 63% of the total value of Crude oil imports to India. The year 2021-22 has seen the emergence of Russia & Brazil among the top 10 countries from which India imports crude oil.

When was sustainable aviation fuel created? ›

SAF was first used in 2008 (according to Shell). Today, many airlines have made commitments to certain levels of SAF use, and this is expanding. ICAO predicted in 2019 that use would reach 8 billion litres by 2032 (from levels then of 6.45 million litres).

Which Indian airline used biofuel first? ›

Spicejet was the first Indian airline company that used biofuel as ATF in August 2018.

What is aviation fuel price in India? ›

Its principal uses are as jet engine fuel. The most common jet fuel worldwide is a kerosene-based fuel classified as JET A-1.
...
Applicable from September 1, 2022.
MetrosPrices
Delhi1,21,041.44
Kolkata1,27,523.33
Mumbai1,20,001.74
Chennai1,25,599.88

Why is aviation fuel cheaper than petrol? ›

The reason behind ATF price being lower than that of petrol and diesel is the way tax on these fuels are calculated. Just like the conventional vehicle fuels, ATF too attracts both central and state taxes, and it varies from state to state due to different VAT rates.

Which fuel is the most sustainable? ›

Natural gas is the most eco-friendly fossil fuel. It is also gaining popularity because its price is a big advantage. Natural gas is a bridge from hard coal and oil to renewable, clean energy.

Is aviation fuel good for the environment? ›

Contrails are even worse. Airplanes constantly emit the trails every time they fly, blasting pollutants into the atmosphere.

What is Type 2 fuel? ›

2 Fuel oil. No. 2 Diesel Fuel: A fuel that has a distillation temperature of 640 degrees Fahrenheit at the 90-percent recovery point and meets the specifications defined in ASTM Specification D 975. It is used in high-speed diesel engines, such as those in railroad locomotives, trucks, and automobiles.

What is a Tier 1 fuel? ›

Top Tier fuel is gasoline or diesel that has a greater amount of detergent additives than the Environment Protection Agency requires. Detergent additives help keep engines clean.

What is Type B fuel? ›

Class B - Flammable liquids: gasoline, oil, grease, acetone. Any non-metal in a liquid state, on fire.

What are the 5 P's in aviation? ›

One such approach involves regular evaluation of: Plan, Plane, Pilot, Passengers, and Programming. The point of the 5P approach is not to memorize yet another aviation mnemonic. You might simply write these words on your kneeboard, or add a reference to 5Ps to your checklist for key decision points during the flight.

What are the 3 main pillars of sustainability? ›

The figure at the top of this page suggests that there are three pillars of sustainability – economic viability, environmental protection and social equity.

What are the 3 P's in aviation? ›

Perceive, Process, Perform (3P) Model:
  • Perceive the given set of circumstances for a flight.
  • Process by evaluating their impact on flight safety.
  • Perform by implementing the best course of action.

How can we make the aviation industry more sustainable? ›

Six Ideas to Make Aviation More Sustainable
  1. 1 – Reduce the amount of single-use plastics on board. ...
  2. 2 – Fly short-haul hybrid or fully electric. ...
  3. 3 – Offset flights. ...
  4. 4 – Reduce routes. ...
  5. 5 – Use Bio Fuels.
22 Nov 2019

How can aviation become more sustainable? ›

One of the most effective ways for airlines to reduce carbon emissions now is to fly on newer aircraft, which are more fuel-efficient and therefore have lower CO2 emissions per passenger. However, no airline can change its fleet overnight; it takes time.

How much sustainable aviation fuel is used each year? ›

Only 3 million gallons (11.4 ML) of sustainable aviation fuel (SAF) (with a heat of combustion totaling about 400 TJ = 0.0004 EJ) was produced in the U.S. in 2019 for a 26 billion gallon per year market (3.6 EJ/year).

Is Gevo Inc A Good Investment? ›

Gevo's analyst rating consensus is a 'Strong Buy. This is based on the ratings of 3 Wall Streets Analysts.

Who is investing in Gevo? ›

Top 10 Owners of Gevo Inc
StockholderStakeShares owned
BlackRock Fund Advisors7.69%18,078,479
The Vanguard Group, Inc.4.55%10,709,367
BlackRock Advisors (UK) Ltd.2.54%5,974,623
Sabby Management LLC2.33%5,486,831
6 more rows

Is Gevo a profitable company? ›

Gevo is bordering on breakeven, according to the 2 American Oil and Gas analysts. They expect the company to post a final loss in 2023, before turning a profit of US$64m in 2024. The company is therefore projected to breakeven around 2 years from now.

Which alcohol is used for fuel? ›

Ethanol is a renewable fuel made from various plant materials collectively known as "biomass." More than 98% of U.S. gasoline contains ethanol, typically E10 (10% ethanol, 90% gasoline), to oxygenate the fuel, which reduces air pollution.

What type of alcohol is used as fuel? ›

Ethanol also called as grain alcohol or ethyl alcohol. The purest form of ethanol is colorless liquid, flammable and boiling point 78.5°C. Compared to many other fuels, ethanol burns more cleanly and produces carbon dioxide and water. Hence, ethanol was considered as eco-friendly fuel for transportation process.

Can petrol engine run on ethanol? ›

Due to similar combustion characteristics, ethanol can be used in petrol engines. While some engines use petrol blended with a small percentage of ethanol, others are ethanol-only. There are several advantages of adding ethanol to petrol. Reduction in emissions is one of the key advantages of using ethanol.

Is Gevo a small cap stock? ›

Gevo, Inc. (NASDAQ:GEVO), is a small-cap stock that is attempting to make waves in the renewable fuels space.

Is Gevo a Buy Sell or Hold? ›

Gevo has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, no hold ratings, and no sell ratings.

Who are Gevo competitors? ›

The main competitors of Gevo include REX American Resources (REX), Origin Materials (ORGN), Aemetis (AMTX), FutureFuel (FF), CENAQ Energy (CENQ), Altus Midstream (ALTM), Energy Vault (NRGV), Natural Resource Partners (NRP), Borr Drilling (BORR), and TETRA Technologies (TTI).

What companies make aviation fuel? ›

Results
  • AERO Specialties. Aircraft Ground Support Equipment. ...
  • AFS Aviation Limited. Aviation Fuels & Refuelling Solutions / Ground Support Equipment. ...
  • Air Fuel Systems. Aviation Refuelling Solutions, Fuel Loading and Fuel Storage. ...
  • AMATEC SPA. ...
  • AVIACO GSE. ...
  • BETA Fueling Systems. ...
  • CYMA Petroleum. ...
  • EJ.

Who is the largest producer of jet fuel? ›

The United States of America is the top country by output of jet fuel in the world. As of June 2022, output of jet fuel in the United States of America was 1,665.2 thousand barrels per day. The top 5 countries also includes Republic of Korea, India, Netherlands, and Japan.

Where does SAF come from? ›

What is SAF made from? SAF can be produced from a variety of sustainable resources, also known as feedstocks. This includes forestry and agricultural waste, used cooking oil, carbon captured from the air, and green hydrogen.

Where is SAF produced? ›

This production took place in its pilot factory, located at the ParaChem industrial site, east of Montreal. SAF+ aims to bring to market, by 2025-2026, synthetic kerosene whose carbon footprint is reduced by 80% compared to fossil kerosene.

What are the two types of aviation fuel? ›

Shell Aviation fuels fall into two basic groups: Aviation gasoline – Used in reciprocating or piston engines. Aviation turbine fuels (jet fuels) – Used in turbo-fan, turbo-jet, and turbo-prop engines.

What is the new aviation fuel? ›

SAF stands for sustainable aviation fuel. It's produced from sustainable feedstocks and is very similar in its chemistry to traditional fossil jet fuel. Using SAF results in a reduction in carbon emissions compared to the traditional jet fuel it replaces over the lifecycle of the fuel.

How is sustainable aviation fuel produced? ›

SAF is made by blending conventional kerosene (fossil-based) with renewable hydrocarbon. They are certified as “Jet-A1” fuel and can be used without any technical modifications to aircraft.

What is the stocks for jet fuel? ›

Basic Info. US Kerosene-Type Jet Fuel Stocks is at a current level of 39.20M, up from 38.72M last week and down from 41.76M one year ago. This is a change of 1.24% from last week and -6.14% from one year ago.

Who is the number 1 producer of oil and gas in the world? ›

Oil Production: OPEC Countries vs.

Following the OPEC countries, the U.S., Canada, and Mexico accounted for just over a quarter of global oil production in 2021. Nearly 70% of North American oil production came from the U.S., the world's largest oil producer.

Who is the biggest supplier of fuel in the world? ›

United States

How is SAF better than jet fuel? ›

SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint. Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel.

What is the cost of sustainable aviation fuel? ›

After all, the cost is a prime reason why several airlines have been slow in adopting SAF. In 2020, the overall cost of jet fuel was $0.5 per liter. Meanwhile, the cost of SAF was $1.1 per liter. So, SAF was more than double the price of conventional jet fuel.

Why is SAF more expensive than jet fuel? ›

Because SAF is relatively new, the industry is still building facilities to scale up production. Less is available. Supply is low, which pushes prices higher. Currently, global SAF production is a miniscule 26.4 million gallons a year—about 0.1 percent of all aviation fuel.

When was SAF first used? ›

Since the first flight using sustainable aviation fuel (SAF) took off in 2008, a lot of progress has been made. Below is a snapshot of what is happening in the field of sustainable aviation fuel today.

Is sustainable aviation fuel more expensive? ›

Currently, SAFs are more expensive than traditional jet fuel. Estimates range from 2x for some waste-based sources to 6-10x for synthetic fuels using carbon capture. This is mainly due to the small production runs.

Why is sustainable aviation fuel important? ›

Sustainable aviation fuel provides a cleaner alternative to fossil fuel, achieving up to an 80 percent reduction in greenhouse gas emissions over the fuel's lifecycle, compared to conventional fossil jet fuel. This enables airlines to lower their impact on the environment.

Videos

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4. Flight Path to Net Zero Aviation | Ecosperity Week 2022
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