Through a partnership with Blocksize Capital, the two companies are working to track sustainability metrics for renewable energy.
Gevo (NASDAQ:GEVO), a company principally engaged in manufacturing renewable fuels and chemicals announced that it has entered an agreement with Blocksize Capital. Together, Gevo and Blocksize are developing solutions to track the sustainability of renewable fuels with blockchain technology. The two companies additionally noted the potential for these sustainable attributes to be tokenized in the future.
As quoted in the press release:
“For years, we have been tracking the sustainability of the farms, and their farming practices, that supply products to our facilities, and we need to continue to do so as we expand. We also track the amount and type of energy used in the production of our products. An end user who buys fuel should be able to simply access the data and know where those gallons originated and what the sustainability profile looks like,” stated Patrick Gruber, Chief Executive Officer of Gevo. “One of the key principles of sustainability is to ‘measure, then improve’. DLT will enable us to sort out what truly is valuable in the end market, assigning the correct value to it, and then set up market mechanisms to share value upstream in the value chain. We want to create a system that rewards the value chain for improving its sustainability. Done right, we should be able to bring some of that value back to the farmer creating rewards for managing sustainability in agriculture. Obviously we’ll target our ethanol, isobutanol, isooctane, and jet fuel first, but this type of tokenization system could be applied to protein and feed, as well as chemicals, and food production too. It isn’t lost on us that this type of Blockchain technology has enormous potential beyond Gevo and its business system. A DLT-based system like the one we are developing with Blocksize is suitable for any type of business that needs to track sustainability attributes using agriculture or forestry to generate raw materials for the production of food, chemicals, feed, and fuels.”