Gevo, Leaf Resources sign joint development agreement
Gevo, Inc., a leading renewable fuels and chemicals manufacturer, announced the signing of a joint development agreement (JDA) with Leaf Resources. Leaf is a Queensland, Australia-based company and one of the world’s leading companies in converting plant biomass into industrial sugars. The JDA is to explore the potential use of cellulosic derived sugars and glycerol from Leaf and the ability to convert these to hydrocarbon molecules useful as fuels or chemicals.
The JDA is structured around three phases of joint work designed to establish a bankable project. Phase 1 will develop the feasibility of a potential facility, followed by phases investigating the commercial development and commercialization of the project. Gevo and Leaf will carry their own costs during phase 1 of the project, with further funding to be determined by a future written agreement after completion of the phase 1 milestones.
“Leaf’s progress in Malaysia and Queensland, in addition to the comprehensive work it has undertaken with regard to its GlycellTM process, creates the potential for a mutually beneficial relationship with Gevo. We have already been supplying renewable jet fuel to Virgin Australia and see the potential demand in Australia and more broadly in Asia. Having a partner like Leaf in the region will help drive our strategy forward with access to sugars as feedstock and chemical and fuel markets in a rapidly growing economic region,” said Dr. Patrick Gruber, chief executive officer at Gevo.
Alex Baker, CEO of Leaf Resources, said: “The synergies between what Gevo is delivering in the market, and what we’ve developed with Leaf’s technology, is clear to see. Subject to the necessary R&D under this project, we see real potential to work with Gevo in the delivery of renewable alternatives to petroleum-based products, where we only expect demand to significantly increase over time.”