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By Gevo

As the United States works to reduce emissions from the transportation sector, the time is ripe for innovations in sustainable aviation fuel (SAF). According to the 2024 Sustainable Energy in America Factbook, supply of renewable diesel and jet fuel rose 53% and 81% respectively in 2023. Globally, airlines signed a total of 36 agreements to procure SAF from January to early December. U.S.-based airlines led in procurement, likely due to government incentives such as investment tax credits under the Inflation Reduction Act (IRA) for SAF producers.

In particular, new innovations have arisen when pairing SAF production with carbon capture and storage (CCS), which also saw growth in 2023. Last year, new investments in CCS totaled $2.8 billion, up 68% from 2022. Around 137 million metric tons annually (Mtpa) of new CCS projects are being planned in the United States, against an installed base of 23 Mtpa in 2023.

This month, BCSE member Gevo announced plans to acquire Red Trail Energy assets in North Dakota, including operating low-carbon ethanol production and carbon sequestration facilities. This development will expand Gevo’s platform for sustainable aviation fuel, hydrocarbons, and chemicals. Plus, the acquisition underscores Gevo’s dedication to providing innovative solutions that address the challenges of global climate change, U.S. energy security, and rural community development.

“Carbon abatement for fuels and chemicals is core to our business,” said Gevo CEO Patrick Gruber. “This acquisition enables immediate market development for sequestered carbon. We expect our ownership of these assets to generate significant near-term and long-term value for our shareholders, while adding new jobs and economic growth to rural communities in the region.”

The acquisition includes existing CCS assets with total sequestration capacity of 1 million metric tons per year, of which 160,000 metric tons per year are currently being utilized. This site could accommodate many future Net-Zero-type and related projects.

Gevo has previously explored traditional CCS such as capturing the carbon from its fermentation and combustion gases and using geologic formations to store the carbon indefinitely. This type of CCS is recognized globally as a viable long-term strategy for reducing the carbon footprint of many production processes.

“As Net-Zero 1 and other production facilities come online, the infrastructure and resources that we will have acquired in North Dakota offer tremendous flexibility for how we might operate in the area,” said  Gevo President and COO Chris Ryan. “We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS. The CCS well gives us optionality for our Net-Zero 1 carbon sequestration needs. The regional synergies with Net-Zero 1, our development facility in Luverne, Minnesota, and our RNG operations in Northwest Iowa, are fantastic.”