Gevo, Mansfield Oil align on isobutanol fuel project
US-based advanced biofuels firm Gevo has entered into a strategic marketing alliance with Mansfield Oil to distribute isobutanol-based fuel into the petroleum market.
In addition, the companies signed a commercial off-take agreement, Gevo’s second commercial off-take agreement to date and its first in the fuel industry.
The agreement has three main pillars, the company said. The first two are part of a five-year contract that allows Mansfield to blend Gevo’s isobutanol for its own use, and to be a distributer of Gevo’s isobutanol.
The last pillar is a three-year contract, under which a Mansfield subsidiary will provide supply chain services that include logistics management, customer service support, invoicing and billing services.
Mansfield markets and distributes fuel to thousands of commercial customers across all 50 states and has over 900 supply points across the country, it said.
“Entering into our second commercial off-take agreement is an exciting milestone for us,” said Christopher Ryan, Ph.D., president of Gevo. “Mansfield is an outstanding partner to help us both market and distribute our advanced biofuel product into a complex petroleum market.”
Earlier this month, Gevo entered into its first definitive commercial off-take agreement with Sasol, with a goal of providing cost-competitive, reduced carbon footprint alternatives for consumer goods such as paint, ink and coating applications, the company said.
South Africa-based Sasol will sell Gevo’s isobutanol for use as a chemical intermediate.
“We are impressed by Gevo’s unique approach to isobutanol development and are confident they will remain the industry leader and a key partner for us,” said Doug Haugh, executive vice president of Mansfield Oil.
“Through this partnership, we are working to develop new fuels formulated with renewable isobutanol that expand the renewable content of the fuels we supply. This also addresses the performance requirements seen in the recreation and marina markets that we supply today.”
Comments