Gevo signs master services agreement with McDermott for SAF facilities

Gevo Inc. announced July 24 that it has entered into a master services agreement (MSA) with a subsidiary of McDermott International Ltd. to provide front-end engineering and early-planning services for Gevo’s development of multiple sustainable aviation fuel (SAF) facilities in North America.

The first facility, Net-Zero 1, is located near Lake Preston, South Dakota.

The Net-Zero 1 plant is expected to produce up to 65 million gallons of SAF, renewable diesel and renewable gasoline that, when consumed, is designed to have a lifecycle net-zero greenhouse-gas (GHG) footprint.

Under the scope of the MSA, McDermott will provide engineering, execution planning and pricing for the engineering, procurement, and construction (EPC) phase of Gevo’s Net-Zero 1 project.

The MSA is expected to lead to a final EPC agreement with Gevo for its Net-Zero 1 project to be finalized in coordination with the timing of Gevo’s financing activities for the project.

“Gevo’s Net-Zero plant design with its focus on carbohydrates as feedstock has been carefully chosen for its exceptional cost-effectiveness, reliability and scalability to meet the surging demand for sustainable aviation fuel and renewable hydrocarbons,” said Chris Ryan, president and chief operating officer of Gevo. “This MSA is the first step towards adding McDermott as a project EPC partner. In addition to Axens, Praj and Fluid Quip, adding McDermott to our team fortifies further our capabilities in project execution and modularization, especially when teamed with Praj. In an increasingly challenging project environment over the past years, this collaboration is designed to ensure we stay on track, manage costs, execute our NZ-1 project, and are capable of executing additional NZ projects.”

Vaseem Khan, senior vice president of McDermott, added, “Gevo is a premier provider in the fast-growing sustainable aviation fuel market. This agreement marks the commencement of a collaborative relationship through which we will support Gevo’s low-cost delivery and speed-to-market goals for its novel alcohol-to-jet process design, which incorporates Axen’s ethanol-to-jet process. We believe we have the experience and expertise to deliver a standardized, modularized and repeatable design for this and Gevo’s future Net-Zero projects.”

The Net-Zero 1 plant will not only contribute to sustainable aviation fuel production but also has the potential to generate 550 million pounds of high-value nutritional products annually.

Electricity needed to power the plant will come from wind energy, ensuring a sustainable and environmentally friendly approach to fuel production.

Additionally, renewable natural gas (RNG) from captured methane emissions of manure from dairy cattle and livestock may be used to meet the thermal-energy needs of the plant, making the fuel production even more sustainable.