Terviva Secures Investment from Idemitsu to Scale Sustainable Pongamia Production for Sustainable Aviation Fuel

Published 13 hours ago via Business Wire

Together, the two companies are poised to accelerate the transition to a low-carbon economy through greener fuel production

Terviva, Inc., an agricultural innovation company working with farmers to grow and harvest pongamia for food, feed and fuel, today announced a strategic investment from integrated energy company Idemitsu Kosan Co., Ltd (Idemitsu). Idemitsu, in partnership with Terviva and Stanmore, an Australia-based coal resource company, is beginning a trial plantation of Terviva’s pongamia in Queensland, Australia. This collaboration leverages Terviva’s scalable tree production and Idemitsu’s expertise in fuels to accelerate the global production of sustainable aviation fuels (SAF) with oil from Terviva's proprietary pongamia technology. Terviva has developed a model that ensures high yields for farmers and a robust end market for the entire pongamia bean, while Idemitsu's industry knowledge streamlines the path to market for the oil as SAF.

Pongamia is recognized for its ability to serve as a feedstock for Sustainable Aviation Fuel (SAF) using HEFA1 technology. Through this trial planting, Idemitsu Kosan will gain an understanding of growing pongamia in a non-typical cropping area, and work on development and optimization of the supply chain for SAF production. Additionally, the company will explore the creation of carbon credits through afforestation, the production of black pellets from shells for biomass power plants, the use of pressed seed pomace as livestock feed, and other uses beyond feedstock for SAF.

"We are excited to partner with a leading company like Idemitsu that shares our vision for a sustainable future," said Naveen Sikka, founder and CEO of Terviva. "Our pongamia genetics have been proven through extensive field trials on over a thousand acres, using proprietary data analytics and farming techniques to drive maximal yield, minimize cost and promote sustainable cultivation. The end result is a complete pongamia farming package that creates a low cost, low carbon and high quality form of oil and protein - revolutionary for a global agriculture industry that is confronting climate change. We are eager to support Idemitsu’s goals to advance sustainable fuel solutions.”

Terviva's elite pongamia cultivars have been developed over 15 years of research trials spanning nearly 2,000 acres in the US and Australia. Terviva’s pongamia trees produce three or more metric tons of beans per acre, which feature a high oil content. The harvested beans are processed to produce oil, which can then be used as a feedstock, or raw material, for the biofuels industry. The combination of high oil yielding cultivars with low agricultural input best-practices creates a unique opportunity for reduced greenhouse gas emissions compared to traditional fossil fuels. Due to the strong genetic variability of pongamia, the know-how for selecting and reproducing superior varieties is key to achieving high yield.

Idemitsu Kosan aims to establish a supply system for 500,000 kL of SAF annually. To meet this goal, the company plans to produce 250,000 kL of SAF annually using HEFA technology at its Tokuyama Complex in FY2028. Considering the potential future supply and demand tightness and price fluctuations of various raw materials, Idemitsu Kosan is working to secure raw materials that can be supplied sustainably over the long term. Pongamia’s ability as a high yielding oilseed crop is considered promising as a measure to secure raw materials for the long-term stable and economical production of SAF using HEFA technology. This initial trial will inform Idemitsu Kosan’s future expansion of commercial pongamia.

ABOUT IDEMITSU KOSAN

The Idemitsu Group is engaged in the development, manufacture, and sales of a wide variety of energy sources and materials in the areas of Petroleum, Basic Chemicals, High-Performance Materials, Power/Renewable Energy, and Resources based on relationships of trust with partners and customers in a variety of fields. To achieve carbon neutrality and a circular society by 2050, we aim to develop the three business areas of "Energy One-Step Ahead," "Diverse Resource Conservation/Circulation Solutions," and "Smart Yorozuya" and continue to take on new challenges using our domestic and international networks.

ABOUT STANMORE RESOURCES LIMITED (ASX: SMR)

Stanmore Resources Limited controls and operates the South Walker Creek, Poitrel and Isaac Plains Complex metallurgical coal mines as well as the undeveloped Eagle Downs, Lancewood, Isaac Plains underground and Isaac Plains South projects, in Queensland’s prime Bowen Basin region. Stanmore Resources holds several additional high-quality prospective coal tenements located in Queensland’s Bowen and Surat basins. The Company is focused on the creation of shareholder value via the efficient operation of its mining assets and the identification of further development opportunities within the region. For more information, visit https://www.stanmore.au/.

ABOUT TERVIVA

Terviva is an agricultural innovation company partnering with farmers to grow and harvest pongamia, a regenerative, permanent tree crop that stores carbon, revitalizes soil health, and has a history of reforestation. Through an equitable and transparent supply chain, Terviva transforms pongamia beans into sustainable food ingredients and bioenergy, which help to revitalize land and communities around the world. Learn more at terviva.com.

1 HEFA (Hydroprocessed Esters and Fatty Acids) Technology and process for producing SAF from hydroprocessed esters and fatty acids obtained by hydrotreating of vegetable oils and other materials. Certified as “ASTM D7566 Annex 2,” the international standard for SAF.

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