Gunvor agrees 10-year offtake agreement with ClearShift for low carbon fuels

In Texas, as part of its strategy to accelerate the energy transition, Gunvor USA LLC has executed a feedstock supply and product offtake Letter of Intent with Dallas-based 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 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.