Renewable fuels and chemicals manufacturer Leaf Resources Limited (ASX: LER) has signed a Joint Development Agreement (JDA) with Colorado-based Gevo.
The JDA is to explore the potential use of cellulosic derived sugars and glycerol and the ability to convert these to hydrocarbon molecules useful as fuels or chemicals.
Gevo is a next generation “low-carbon” fuel company focused on the development and commercialisation of renewable alternatives to petroleum-based products, while Leaf Resources is one of the world’s leading companies in converting plant biomass into industrial sugars.
Alex Baker, CEO of Leaf Resources said the JDA is structured around three phases of joint work designed to establish a bankable project.
Phase 1 will develop the feasibility of a potential facility, followed by phases investigating the commercial development and commercialisation of the project. Gevo and Leaf will carry their own costs during phase 1 of the project, with further funding to be determined by a future written agreement after completion of the phase 1 milestones.
“Leaf’s progress in Malaysia and Queensland, in addition to the comprehensive work undertaken with regard to its Glycell process creates the potential for a mutually beneficial relationship with Gevo,” said, Dr Patrick Gruber, CEO at Gevo.
“We have already been supplying renewable jet fuel to Virgin Australia and see the potential demand in Australia and more broadly in Asia. 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.”
Mr Baker said that subject to the necessary R&D under this project, Leaf sees real potential to work with Gevo in the delivery of renewable alternatives to petroleum-based products, where we only expect demand to significantly increase over time.