12-12-2023

Gunvor partners with ClearShift on zero carbon diesel and chemicals

As part of its strategy to accelerate the energy transition, Gunvor USA LLC, part of the Gunvor Group and one of the world's largest independent commodities trading houses, has executed a feedstock supply and product offtake Letter of Intent with Dallas-based ClearShift LLC, a leader in the development of gas-to-liquids technology and the production of low-carbon fuels and specialty chemicals.

The Letter of Intent covers a 10-year supply of all natural gas and renewable natural gas, the offtake of low carbon diesel, and the offtake of high-grade carbon-neutral chemicals from ClearShift's facility to be located near the chemical corridor in Louisiana.

The structure of Gunvor's supply and offtake allows for a fully de-risked margin to ClearShift, while providing optionality for both parties to capture additional margin. The facility will consume approximately 55,000 MMBtu of natural gas and renewable natural gas per day and will produce approximately 75 million gallons per year of low-carbon renewable diesel and zero carbon, high-grade specialty chemicals. ClearShift also produces clean hydrogen, which is consumed in its non-combustion production process.

"ClearShift is pioneering the energy transition, creating pure, low carbon fuels and carbon neutral specialty chemicals from readily available cheap hydrocarbon supplies," said Shane Foster, Energy Transition Lead – Americas at Gunvor. "We look forward to building a long-term relationship focused on enhancing the variety and quality of fuels and chemicals we offer to our customers."

"We are thrilled about our relationship with Gunvor," said John Stephenson, CEO of ClearShift. "When combined with the new incentives available in the Inflation Reduction Act, this agreement serves as a quantum leap for our business, illustrating how sustainable technology-based companies and leading commodity trading houses can partner together to ensure that the next wave of sustainable infrastructure thrives."