Gevo Inc (NASDAQ:GEVO), a renewable fuels company, announced Tuesday that it has signed a joint development agreement with Leaf Resources, an Australian company specializing in converting plant biomass into industrial sugars.
The plan is to investigate the potential of sugars and glycerol derived from cellulose — plants — to be converted into hydrocarbon molecules for use in fuels or chemicals.
The agreement consists of three phases, the company said in a statement, the first of which includes exploring a potential facility and investigating the project’s commercialization. The companies will each bear their own costs during phase one, with funding for future phases to be laid out in a written agreement at a later date.
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“Leaf’s progress in Malaysia and Queensland, in addition to the comprehensive work it has undertaken with regard to its Glycell process, creates the potential for a mutually beneficial relationship,” Gevo CEO Patrick Gruber said in the statement.
“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,” he added.
Gevo’s ties in the area include a deal supplying Virgin Australia with renewable jet fuel, Gruber said, which gives the company a firsthand look at potential demand.
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