Luverne Plant Update - Fourth Quarter Isobutanol Production Milestone Achieved Under Side-by-Side
08 Januar 2015 - 3:00PM
Gevo, Inc. (Nasdaq:GEVO), the world's only commercial producer of
renewable isobutanol, today reported an update on the progress of
the Side-by-Side operational mode (SBS) of its plant in Luverne,
MN.
In June 2014, Gevo commenced the co-production of isobutanol and
ethanol at Luverne, with one fermenter dedicated to isobutanol
production and three fermenters dedicated to ethanol production.
Gevo had articulated a goal of reaching isobutanol production
levels of 50-100 thousand gallons per month by the end of 2014. In
the month of December, Gevo produced over 50 thousand gallons of
isobutanol, meeting the Company's stated goal.
Other key highlights since the last plant update provided in
Gevo's third quarter earnings release include:
- Implementation of a second-generation yeast isobutanol
biocatalyst at Luverne that significantly improves plant
operability.
- Increased the isobutanol fermentation rate by approximately 20%
versus the best performing batch using the first-generation
yeast.
- Can produce in operating conditions that enable further
mitigation of potential infections, as well as the improved
management of the iDGs™ animal feed
co-product.
- This second-generation yeast platform, which is a product of a
new yeast modification capability developed by Gevo, speeds up the
development and implementation of new traits in Gevo's yeast
through high-speed combinatorial techniques.
- NAPA Myers Auto Parts began selling off-road fuel developed by
Gulf Racing Fuels containing blends of up to 16% of Gevo's
renewable isobutanol in North Dakota, South Dakota, Wyoming,
Montana, and Minnesota for use in boats, ATVs, motorcycles and
snowmobiles.
"We are very pleased to have achieved our milestone of producing
over 50 thousand gallons of isobutanol in a month, while continuing
the co-production of ethanol. Since announcing in March 2014 that
we would be switching Luverne over to SBS, we have consistently met
our operational targets. I would like to thank the entire Gevo team
for all of their hard work in continuing to prove out isobutanol
production at a commercial scale. We are also extremely excited to
have implemented our new yeast biocatalyst at Luverne. We believe
that this yeast platform will enable even greater progress of our
commercial isobutanol production," said Dr. Patrick Gruber, Gevo's
CEO.
"The anticipated benefits of switching Luverne to SBS have borne
out. Producing alcohol in all four fermenters improves the
operating environment for the optimization of our isobutanol
production by creating a continuous and stable mash flow and a more
consistent recycle of water through the plant. SBS has also
dramatically improved the cash flow profile of the plant. In fact,
we estimate that the plant operated at roughly an EBITDA breakeven
level in November. Overall, we believe that we have made tremendous
progress in proving out our isobutanol technology for potential
licensees," Gruber added.
"We are also very encouraged by the enthusiasm of the market to
adopt Gulf Racing Fuels' gasoline blends with Gevo's renewable
isobutanol for marine and off-road applications. These are ideal
markets to demonstrate isobutanol's beneficial properties and set
the stage for entry into the larger on-road market," he said.
About Gevo
Gevo is a leading renewable technology, chemical products, and
next generation biofuels company. Gevo's underlying technology uses
a combination of synthetic biology, metabolic engineering,
chemistry and chemical engineering to focus primarily on the
production and sale of isobutanol, as well as related products from
renewable feedstocks. Gevo's strategy is to commercialize biobased
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities' assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
first fermentation plant in Luverne, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates its first biorefinery in Silsbee, TX, in
collaboration with South Hampton Resources Inc., to produce
renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo has a marquee list of partners including The
Coca-Cola Company, Toray Industries Inc., Total SA and LANXESS,
Inc., an affiliate of LANXESS Corporation, among others. Gevo is
committed to a sustainable bio-based economy that meets society's
needs for plentiful food and clean air and water. For more
information, visit www.gevo.com.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include statements that are not purely statements of
historical fact, and can sometimes be identified by our use of
terms such as "intend," "expect," "plan," "estimate," "future,"
"strive" and similar words. These forward-looking statements are
made on the basis of the current beliefs, expectations and
assumptions of the management of Gevo and are subject to
significant risks and uncertainty. Investors are cautioned not to
place undue reliance on any such forward-looking statements. All
such forward-looking statements speak only as of the date they are
made, and the company undertakes no obligation to update or revise
these statements, whether as a result of new information, future
events or otherwise. Although the company believes that the
expectations reflected in these forward-looking statements are
reasonable, these statements involve many risks and uncertainties
that may cause actual results to differ materially from what may be
expressed or implied in these forward-looking statements. For a
further discussion of risks and uncertainties that could cause
actual results to differ from those expressed in these
forward-looking statements, as well as risks relating to the
business of Gevo in general, see the risk disclosures in the Annual
Report on Form 10-K of Gevo for the year ended December 31, 2013,
as amended, and in subsequent reports on Forms 10-Q and 8-K and
other filings made with the SEC by Gevo.
CONTACT: Media Contact:
Robin Peak
Gevo, Inc.
T: (720) 267-8632
rpeak@gevo.com
Investor Contact:
Mike Willis
Gevo, Inc.
T: (720) 267-8636
mwillis@gevo.com
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