HOUSTON – As part of its strategy to accelerate the energy transitionEnergy Transition refers to the global shift from reliance on fossil fuels such as coal, oil, and natural gas towards more sustainable and renewable energy sources like solar, wind, hydroelectric,... Read more, Gunvor USA LLC (Gunvor), 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 (ClearShift), 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 gasNatural Gas Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane (CH4), but commonly includes varying amounts of other higher alkanes, and sometimes a small percentage... Read more 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 optionalityOptionality refers to the feature embedded in certain financial contracts that gives the holder the right, but not the obligation, to execute a transaction at a predetermined price, within a... Read more 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 hydrogenHydrogen is the simplest and most abundant chemical element in the universe, represented by the symbol H and the atomic number 1. In standard conditions for temperature and pressure, hydrogen... Read more, 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.”
ClearShift produces ultra-pure, environmentally friendly fuels and specialty chemicals using a cutting-edge gas-to-liquids (GTL) process, responsibly replacing legacy oil-based fuels and chemicals. Its GTL technology converts methane, flare gas and CO2 into low carbon fuels and non-combustible carbon neutral specialty chemicals, removing the associated CO2 from the air permanently. ClearShift helps companies convert pollution into profit, while reducing their carbon footprint. For further information, visit www.goclearshift.com.
About Gunvor Group
Gunvor is one of the world’s largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. Gunvor has strategic investments in industrial infrastructure — refineries, pipelines, storage and terminals — that complement our core trading activity and generate sustainable value across the global supply chainSupply chain refers to the network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. In the context of energy commodities, the... Read more for our customers. Gunvor established Nyera, its wholly owned subsidiary dedicated to identifying Energy Transition investments, including new sustainable commodities and businesses.