London, 24 July, 2023, (Oilandgaspress) – McDermott has secured a master services agreement (MSA) from Gevo, Inc., 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 constructed near Lake Preston, South Dakota. The Net-Zero 1 plant is expected to produce up to 65 million gallons of sustainable aviation fuel (SAF), diesel and renewable gasoline that, when consumed, is expected to have a lifecycle net-zero greenhouse gas footprint.
“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 Gevo’s novel alcohol-to-jet process design which incorporates Axen’s ethanol-to-jet process,” said Vaseem Khan, Senior Vice President of McDermott. “We believe we have the experience and expertise to deliver a standardized, modularized, and repeatable design for this and Gevo’s future Net-Zero projects.”
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 finalized 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, and execute our NZ-1 project, and be capable of executing additional NZ projects,” stated Dr. Chris Ryan, President and Chief Operating Officer of Gevo.
The Net-Zero 1 plant will not only contribute to sustainable aviation fuel production but also has the potential to generate 550 million pounds of high-value nutritional products annually. The electricity needed to power the plant will come from wind energy, ensuring a sustainable and environmentally friendly approach to fuel production. Additionally, the thermal energy needs of the plant are expected to be met by renewable natural gas (RNG) sourced from upstream facilities that produce RNG using manure from dairy cattle and livestock.
The project will be led by McDermott’s team in Houston, Texas, with support from its engineering team in Gurugram, India.
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