Gevo Inc (NASDAQ:GEVO) (NASDAQ:GEVO) said it plans to begin installing an alcohol-to-hydrocarbon process pilot unit at its facility in Luverne, Minnesota in the third quarter of 2022 with startup demonstration production expected in the fourth quarter of the same year.
The unit is being designed to produce market development quantities of sustainable aviation fuel (SAF), renewable premium gasoline, other renewable fuel products, and to supply market development quantities of chemical products.
READ: Gevo files for environmental permits in South Dakota for its Net-Zero 1 project
It comes ahead of Gevo's state-of-the-art Net-Zero 1 production facility expected to begin production in 2024 in Lake Preston, South Dakota.
"The work we do at the Luverne facility will be critical in establishing a smooth startup of Net-Zero 1 and future Net-Zero projects for ramping up capacity right out of the gate,” said Dr Paul Bloom, Chief Carbon & Innovation Officer of Gevo.
“We also plan to use the new pilot capability to support our robust pipeline of new renewable fuel and chemical projects in the future, which is also a first step in converting Luverne into a hydrocarbon facility.
"We couldn’t do that effectively without the support we’ve received from the City of Luverne and the State of Minnesota. We’re excited to bring more high-quality jobs to the area and to continue to be a part of the Luverne community," he added.
Gevo subsidiary Agri-Energy, which owns the Luverne Facility, rehired multiple former employees in the beginning of August, and is in the process of hiring additional employees to produce the isobutanol (IBA) that is the feedstock for the hydrocarbon pilot unit.
The low carbon fuel firm is currently developing its first Net-Zero project in Lake Preston, South Dakota. The project is expected to produce renewable hydrocarbon products that when burned, have the potential to yield net-zero greenhouse gas emissions when measured across the entire lifecycle of the products.
Contact the author at giles@proactiveinvestors.com