Gevo Executes Deal with Biorecro for Sustainable Aviation Fuel Development

Gevo, a diversified energy company, has executed a deal with Biorecro. Gevo is focused on sustainable aviation fuel and renewable hydrocarbon products, such as renewable natural gas, gasoline blend stocks, and diesel fuel. The company operates in three segments: Gevo, Agri-Energy, and Renewable Natural Gas.

Gevo, Inc. (NASDAQ: GEVO), a diversified energy company focused on sustainable aviation fuel and renewable hydrocarbon products, has announced a significant Carbon Dioxide Removal Sales Agreement with Biorecro North America. The deal, expected to generate approximately $26 million in revenues over five years, represents a strategic pivot for Gevo towards revenue diversification. This agreement will provide a stable revenue stream, contrasting sharply with the historically volatile biofuel market.

The agreement involves Gevo's subsidiary, Net-Zero Richardton, which has been certifying up to 165,000 tonnes of stored CO₂ annually since 2022. The facility has the capacity to store up to 1 million tonnes per year, generating high-integrity carbon removal credits (CORCs) certified by Puro.earth. These credits meet stringent standards for 1,000-plus-years permanence, addressing a critical weakness in Gevo's business model. The deal aligns with the growing demand for high-quality carbon dioxide removal solutions, as companies struggle to meet net-zero commitments.

Gevo's carbon removal credits are immediately available for customers looking to offset hard-to-abate emissions. The company's operational readiness in the carbon removal marketplace, along with its existing infrastructure, positions Gevo to generate this new revenue stream with minimal additional capital investment. This strategic move enhances Gevo's financial performance while maintaining its longer-term renewable fuels strategy.

"While biofuel markets can be volatile, the demand for our cost-effective carbon abatement solutions is starting to provide new, stable revenue streams to deliver value to our customers and shareholders," said Dr. Paul D. Bloom, Chief Business Officer for Gevo. "This deal with Biorecro demonstrates the demand for high-quality carbon dioxide removal credits."

Henrik Karlsson, Founder and Chief Executive Officer of Biorecro, expressed excitement about the partnership. "As a global BECCS project developer, our team at Biorecro is excited to share our expertise with Gevo and leverage their capacity to grow this critical carbon removal sector in this project and beyond."

Gevo's North Dakota facility has been certifying up to 165,000 tonnes of stored CO₂ per year since 2022, with the ability to scale to 1 million tonnes per year. The site is one of the first BECCS and industrial-scale carbon removal projects to become operational globally, providing immediate solutions for companies with hard-to-abate emissions.

This deal underscores Gevo's commitment to sustainability and its ability to leverage existing infrastructure for new revenue streams. The company's strategic pivot towards carbon removal credits not only stabilizes its revenue but also strengthens its position in the renewable energy sector.

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Gevo Executes Deal with Biorecro to Accelerate Multi-Year Carbon Credit Offtake and Business Expansion^[1] https://www.stocktitan.net/news/GEVO/gevo-executes-deal-with-biorecro-to-accelerate-multi-year-carbon-58fjtzhaw1ql.html