Gevo announces fuel contract, plan for sustainability tracking

By Erin Voegele | November 05, 2019

Gevo Inc. announced Nov. 4 it has won a contract to supply the city of Seattle with renewable gasoline to fuel its fleets. The following day, the company announced it has signed a development agreement with Blocksize Capital for a technology to track the sustainability of renewable products.

Regarding the contract with Seattle, Gevo said it submitted the winning big in a competitive process conducted by the city. As a result, Gevo has been awarded a four-year contact with three two-year extensions to supply a minimum of 200,000 gallons per year of renewable isobutanol and 600,000 gallons per year of renewable isooctane. The bidding process was part of Seattle’s Green Fleet Action Plan, which aims to aggressively tackle fleet emissions. As part of the CFAP, Seattle aims to reduce greenhouse gas (GHG) emissions by 50 percent by 2025 and use only fossil-fuel-free fuel by 2030.

Gevo has partnered with Scooter J Logistics and Small and Sons Oil Distribution Co. to deliver the final blended renewable gasoline products to the Seattle fleet. Gevo said these businesses will coordinate the blending, logistics, and delivery of the final product to the city of Seattle.

“The City of Seattle is making a measurable difference, and together, we can reach the goals of its Green Fleet Action Plan. The city is again illustrating what is possible; to break away from fossil-based fuels and to reduce CO2 and particulate emissions, as well as other related pollution,” said Patrick Gruber, chief executive officer of Gevo.  “These volumes are a great initial starting point to make some real change.  Gevo will again supply isobutanol then migrate into our renewable gasoline through the use of isooctane, once the Luverne plant is expanded up to 10-12MGPY.”

Gevo has also signed a development agreement with Germany-based Blocksize Capital, a distributed ledger technology (DLT), or “blockchain” company.

Gevo said DLT is an immutable tool that allows tracking of data with a product and the transactions associated with a product. The two companies discovered that it is possible to attach the key metrics for sustainability to gallons of fuel. Gevo said the data associated with certain key metrics for measuring sustainability are suitable for being digitized through blockchain.

“For years, we have been tracking the sustainability of the farms, and their farming practices, that supply products to our facilities, and we need to continue to do so as we expand. We also track the amount and type of energy used in the production of our products. An end user who buys fuel should be able to simply access the data and know where those gallons originated and what the sustainability profile looks like,” Gruber said. “One of the key principles of sustainability is to ‘measure, then improve’.  DLT will enable us to sort out what truly is valuable in the end market, assigning the correct value to it, and then set up market mechanisms to share value upstream in the value chain. We want to create a system that rewards the value chain for improving its sustainability. Done right, we should be able to bring some of that value back to the farmer creating rewards for managing sustainability in agriculture. Obviously we’ll target our ethanol, isobutanol, isooctane, and jet fuel first, but this type of tokenization system could be applied to protein and feed, as well as chemicals, and food production too. It isn’t lost on us that this type of Blockchain technology has enormous potential beyond Gevo and its business system. A DLT-based system like the one we are developing with Blocksize is suitable for any type of business that needs to track sustainability attributes using agriculture or forestry to generate raw materials for the production of food, chemicals, feed, and fuels.”