Musket to Focus on Growing Customer and Retail Network
ENGLEWOOD, Colo., Feb. 08, 2018 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that it has strengthened its existing relationship with Musket Corporation, a national fuel distributor under the umbrella of the Love’s Family of Companies, by amending its existing isobutanol supply agreement to provide Musket with the exclusive right to sell Gevo’s renewable isobutanol within a 300 mile radius of Houston, Texas. This agreement establishes a market region that encompasses Austin, Dallas, Fort Worth, Oklahoma, Louisiana, as well as the majority of South and East Texas.
Musket began distribution of isobutanol gasoline blends in the Houston area in late 2016. Their ability to source, transport and blend fuels has led to rapid growth in and around Houston. Houston is classified as a Reformulated Gasoline (RFG) market under the EPA guidelines. Nearly all RFG gasoline is formulated with ethanol as the oxygenate. Isobutanol enables an ethanol free blended gasoline in RFG areas that meet all the EPA guidelines.
“Gasoline made with isobutanol is another offering we can provide to the marketplace to meet demand in RFG areas. We are pleased to expand our relationship and region with Gevo,” said JP Fjeld-Hansen, vice president of Musket.
“We believe Musket is an excellent partner to expand the use of isobutanol in gasoline blends for the ethanol free gasoline market in Houston and adjacent areas. Musket has a strong national market reach in the fuel distribution arena and is well positioned to grow the market. This exclusive arrangement incents Musket and Gevo to continue their collaborative marketing efforts, and it is expected to deliver a bigger network of distribution and retail outlets as demand for these ethanol free gasoline products develops,” 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 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 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.
About Musket Corporation
Musket Corporation is part of the privately held Love’s Family of Companies specializing in commodity supply, trading and logistics across North America. Musket is headquartered in Houston, Texas, with additional offices in Oklahoma City, Oklahoma, and Phoenix, Arizona. The Love’s Family of Companies includes Love’s Travel Stops & Country Stores with more than 380 retail locations in 40 states. For more information, visit www.musketcorp.com or www.loves.com.
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 Gevo’s ability to produce and increase its production of renewable isobutanol, Musket’s willingness to purchase and distribute renewable isobutanol from Gevo pursuant to the agreement the parties entered into, the size of the markets for renewable isobutanol and customer demand for renewable isobutanol. 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, including whether Musket will purchase any isobutanol pursuant to the agreement with Gevo. 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, 2016 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.
Media and Investor Contact
Shawn M. Severson
EnergyTech Investor, LLC