Gevo and HCS Group Sign Strategic Agreement to Produce Renewable Low-Carbon Chemicals and Sustainable Aviation Fuel in Europe

Gevo, Inc. (“Gevo”), announced today that Gevo and HCS Group GmbH, a long-time customer of Gevo, have signed a project memorandum of understanding (“MOU”) to develop and build a renewable hydrocarbon facility at HCS Group’s site located in Speyer, Germany, which would utilize Gevo’s low-carbon sustainable aviation fuel (“SAF”) technology.

The MOU anticipates a first project that is estimated to produce approximately 60 kMT (22 million gallons per year) of renewable hydrocarbons, advanced renewable fuels, and low-carbon SAF at HCS Group’s Speyer site by the end of 2024. The HCS Group manufacturing center, operated by the Haltermann Carless brand, is strategically located in the geographical center of Europe, at the Rhine river and in the vicinity of Frankfurt airport, offering excellent prerequisites for supplying customers in Europe with SAF, certified under Europe’s Renewable Energy Directive (“EU REDII”), and a portfolio of certified renewable drop-in fuels and specialty chemicals.

“This project, developed in technology partnership with Gevo, is a key element of HCS Group’s strategy and our aspiration to be a perpetual pioneer in the area of high-value hydrocarbons, while making a clear contribution to defossilization and the reduction of greenhouse gas emissions. This is a unique opportunity to enter the SAF market as the first commercial producer in Germany, building on our market success with renewable hydrocarbons”, says Henrik Krüpper, Chief Executive Officer HCS Group and adds: “We are excited to enable our customers in the aviation, premium fuels and personal care industries with bio-based solutions to meet their sustainability goals. Using our existing infrastructure in Speyer including our new hydrogenation plant allows us to minimize time-to-market, certification and approval processes, and costs for this first-of-its-kind project.”

“Gevo and HCS Group have a long-standing and productive relationship at supplying products to service existing HCS Group customers with renewable chemicals and high-octane products. Given that history, and the need for SAF in Europe, it made strategic sense to develop a joint project in the EU. Gevo’s technology creates the building blocks for making hydrocarbons. We will need to establish several suppliers of our renewable building blocks, throughout EU, made from sugary agricultural residues,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer. Dr. Gruber continued, “Gevo’s technology and business system for producing renewable hydrocarbons for fuels, chemicals, and plastics can be a contributor to fight climate change, get production off a fossil-based system and be at the forefront of future use of residues and waste feedstocks under EU REDII Annex IX in Europe.”

Source: Gevo Inc., press release, 2021-02-24.