Gevo Awarded Contract to Supply Jet Fuel to U.S. Air Force
ENGLEWOOD, Colo., Sep 28, 2011 (BUSINESS WIRE) -- Gevo, Inc. (NASDAQ: GEVO), a leading renewable chemicals and advanced biofuels company, has been awarded a contract by the Defense Logistics Agency (DLA) to supply jet fuel to the U.S. Air Force (USAF). DLA sources and provides nearly 100 percent of the consumable items America's military needs to operate. The contract, worth a possible total of $600,000, provides that Gevo will supply the USAF with up to 11,000 gallons of 'alcohol-to-jet' (ATJ) based jet fuel, which will be used to support engine testing and a feasibility flight demonstration using an A-10 aircraft.
"The USAF is committed to positioning itself to integrate cost competitive alternative aviation fuels for up to half of its domestic needs by 2016," commented Christopher Ryan, Ph.D., president and COO of Gevo. "Once the USAF certifies our ATJ fuel, we believe we will have an excellent opportunity to become a supplier of homegrown and renewable jet fuel to our armed services."
This is the first ATJ fuel contract awarded by the DLA. The contract stipulates that Gevo will supply the USAF with 7,000 gallons of ATJ fuel. The fuel will be shipped to Wright-Patterson Air Force Base, where the Air Force will finish lab testing and begin engine testing. DLA has the option to order up to an additional 4,000 gallons at the end of the contract.
The ATJ fuel is scheduled to be produced from isobutanol at Gevo's hydrocarbon processing demonstration plant in Silsbee, Texas, in partnership with South Hampton Resources. The company plans to begin shipping product to the USAF in the first quarter of 2012.
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, please visit http://www.gevo.com.
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to a variety of matters, including but not limited to the cost, timing and anticipated completion of the retrofit, the benefits expected to result from the joint venture and the retrofit, expected isobutanol production capacity and other statements that are not purely statements of historical fact. 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.