Gevo and Mansfield Oil Company Sign Commercial Off-Take and Strategic
ENGLEWOOD, Colo., Sep 08, 2011 (BUSINESS WIRE) --
Gevo, Inc. (NASDAQ: GEVO), a leading renewable chemicals and advanced biofuels company, has entered into a strategic marketing alliance with Mansfield Oil Company ("Mansfield"), to efficiently distribute isobutanol based fuel into the petroleum market. In addition the companies signed a commercial off-take agreement, Gevo's second commercial off-take agreement to date and its first in the fuel industry.
The agreement has three main pillars: the first two are part of a five-year contract that allows Mansfield to blend Gevo's isobutanol for its own use, and to be a distributer of Gevo's isobutanol. The last pillar is a three-year contract, under which a Mansfield subsidiary will provide supply chain services that include logistics management, customer service support, invoicing and billing services. Mansfield markets and distributes fuel to thousands of commercial customers across all 50 states and has over 900 supply points across the country.
"Entering into our second commercial off-take agreement is an exciting milestone for us," said Christopher Ryan, Ph.D., president and COO of Gevo. "Mansfield is an outstanding partner to help us both market and distribute our advanced biofuel product into a complex petroleum market. They will help us manage the supply chain and logistics required to efficiently move our product to market."
Earlier this month, Gevo entered into its first definitive commercial off-take agreement with Sasol Chemical Industries Limited ("Sasol"), with a goal of providing cost-competitive, reduced carbon footprint alternatives for consumer goods such as paint, ink and coating applications. Sasol, a $32 billion South African-based chemicals company, will sell Gevo's isobutanol for use as a chemical intermediate.
"We are impressed by Gevo's unique approach to isobutanol development and are confident they will remain the industry leader and a key partner for us," said Doug Haugh, executive vice president of Mansfield Oil Company. "Through this partnership, we are working to develop new fuels formulated with renewable isobutanol that expand the renewable content of the fuels we supply. This also addresses the performance requirements seen in the recreation and marina markets that we supply today."
Gevo is converting existing ethanol plants into biorefineries to make renewable building block products for the chemical and fuel industries. The Company plans to convert renewable raw materials into isobutanol and renewable hydrocarbons that can be directly integrated on a "drop in" basis into existing chemical and fuel products to deliver environmental and economic benefits. Gevo is committed to a sustainable biobased economy that meets society's needs for plentiful food and clean air and water. For more information, visit www.gevo.com
About Mansfield Oil Company
Ranked as one of the Top 100 privately held companies in America by Forbes and a multiple finalist in the 2009 and 2010 Platt's Global Energy Awards, Mansfield Oil defines the next generation of downstream oil company, delivering a disciplined approach to fuel services nationwide from over 900 supply terminals. Founded in 1957, the company has achieved double-digit growth for three decades. Mansfield Oil focuses on optimizing and controlling fuel-related costs for their customers with local service, nationwide. For more information, visit www.mansfieldoil.com
Notice Regarding 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, 2010, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo.
SOURCE: Gevo, Inc.
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