Gevo has entered into a master services agreement (MSA) with a subsidiary of McDermott to provide front end engineering and early planning services for Gevo’s development of multiple sustainable aviation fuel facilities in North America.
The first facility, Net-Zero 1, is expected to be located near Lake Preston, South Dakota. The Net-Zero 1 plant is expected to produce up to 65 million gallons (246,000 m3) of sustainable aviation fuel (SAF), diesel, renewable gasoline that, when consumed, is designed to have a lifecycle net-zero greenhouse gas 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 finalised in coordination with the timing of Gevo’s financing activities for its Net-Zero 1 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. 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 be capable of executing additional NZ projects,’ says Dr. Chris Ryan, president and chief operating officer of Gevo.
‘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,’ says Vaseem Khan, senior VP of McDermott. ‘We believe we have the experience and expertise to deliver a standardised, modularised, and repeatable design for this and Gevo’s future Net-Zero projects.’
The Net-Zero 1 plant will not only contribute to SAF production, but also has the potential to generate 550 million lbs (250,000 tonnes) 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.