Expands on Previously Announced Partnership with Musket Corporation
ENGLEWOOD, Colo., Nov. 10, 2016 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that gasoline blended with its isobutanol and marketed for use in automobiles has begun to be sold in the Houston area. This marks the first time that Gevo’s isobutanol has been specifically targeted towards on-road vehicles. Previously, Gevo and its partners have focused on specialty markets such as marinas and off-road engines.
Musket Corporation is Gevo’s distribution partner serving the Houston market. Musket is blending up specially formulated gasoline containing Gevo’s isobutanol to distribute into the on-road automobile market. Buc-ee’s, a 37-store regional chain of rest stops in Texas, is the first company to sell the blend, marketed as a high-performance ethanol-free gasoline.
The 12.5% blend of isobutanol and gasoline is attractive to customers who are looking for a high-performance alternative to ethanol-blended gasoline. The on-road gasoline market represents a much larger market opportunity for isobutanol than specialty segments. Selling into the on-road market also counterbalances the seasonal nature of some of the specialty markets like marinas.
To learn more about the benefits of isobutanol-blended gasoline visit Gevo’s website: http://www.gevo.com/our-markets/
This announcement expands on the previously publicized partnership between Gevo and Musket. In June, Gevo announced it had entered into an agreement with Musket to supply isobutanol for blending with gasoline. Musket is a national fuel distributor under the umbrella of the Love’s Family of Companies and specializes in commodity supply, trading and logistics across North America. Under the partnership, the initial target markets were Musket’s marine and off-road customers in Arizona, Nevada, and Utah.
“Isobutanol-blended fuel is a new paradigm for biofuels because it combines high performance and sustainability. We’ve established this in the aviation and boating markets and are now bringing it to on-road transportation. It’s important for us to be working with established brands like Musket and Buc-ee’s to deliver a new high performance gasoline to end customers, and we look forward to seeing this business grow,” said Dr. Patrick Gruber, Chief Executive Officer of Gevo.
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based 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 fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, 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. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.
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 relate to a variety of matters that are not purely statements of historical fact, including, without limitation, statements related to the on-road market for isobutanol-blended gasoline, the benefits and qualities of isobutanol and isobutanol-blended gasoline and demand for isobutanol-blended gasoline. 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 Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo 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, 2015 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.
David RodewaldThe David James Agency, LLC
Shawn M. SeversonEnergyTech Investor, LLC