19 Mar 2023
Gevo , Inc. (NASDAQ:GEVO) announced that it has entered into a joint development agreement with Southwest Iowa Renewable Energy (SIRE) to measure, report and verify carbon intensity (CI) through the entire value chain, inclusive of climate-smart agriculture practices to lower the carbon footprint of SIRE’s product portfolio.
Utilizing the Verity Tracking platform under Gevo's newly created Verity Carbon Solutions business, this joint development agreement will focus on implementing tracking technology and developing the market for carbon inset credits that will help farmers and biofuel producers quantify the CI reductions for their products. This initiative plans to track reductions of CI to produce fuels and nutritional products through the use of “climate smart” agricultural practices, improvements in energy efficiency and potential use of defossilization of the input energy. With these tools in place, companies like Gevo and SIRE should then be able to source low-carbon grain from farmers and reward them for their contributions to overall CI reductions.
“We are excited about our partnership with SIRE to track carbon intensity reductions through the entire value chain, creating high quality carbon insets. Unlike carbon offsets where the carbon reduction value is transferred to a value chain that may not be related, the carbon inset approach here allows carbon intensity reduction to be quantified throughout the value chain from the bushel to the gallon to drive continuous improvement,” said Dr. Paul Bloom, Gevo’s Chief Carbon & Innovation Officer. “For end customers who want to reduce their carbon footprint within the value chains in which they participate, this effort aims to provide measurable improvement and trust in verification of those efforts.”
Mike Jerke, SIRE CEO stated, “Farmers have always understood that their livelihood is directly tied to the land, and they are quick to adopt practices that benefit the soil for the long-term. SIRE is pleased to be working alongside Gevo to introduce our farmers to the Verity platform. This tool should allow participating farmers to track, prove, and ultimately monetize, the carbon reduction on their acres."
This partnership between Gevo and SIRE will provide a market driven approach to tracking reductions of CI through the use of climate smart agricultural practices, energy efficiency projects and potential defossilization of the input energy for the production of agricultural based products including biofuels, food, animal feed, and renewable chemicals. Farmers and other value chain participants who contribute to lowering CIwill be financially rewarded for their efforts while companies like Gevo and SIRE are able to continue to make improvements on the path to net-zero carbon emissions energy, liquid transportation fuels, and renewable chemicals.
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