Side-by-Side Operation of Luverne Plant on Track
July 28 2014 - 4:01PM
Gevo, Inc. (Nasdaq:GEVO) today reported an update on the progress
of the implementation of the Side-by-Side operational mode (SBS) of
its plant in Luverne, MN. In the beginning of June, Gevo commenced
the co-production of isobutanol and ethanol, with one fermenter
dedicated to isobutanol production and three fermenters dedicated
to ethanol production. This follows the company's announcement in
May that it had begun production of ethanol. The benefits of
simultaneously producing isobutanol and ethanol using the SBS are:
1) it facilitates the process
optimization of commercial-scale isobutanol production;
2) it maximizes the utilization of the
plant to generate cash by utilizing all the fermentation assets;
and
3) it demonstrates the simultaneous
production of isobutanol and ethanol, for the benefit of potential
licensee partners who are interested in augmenting the fermentation
capacities of their ethanol plants to co-produce isobutanol.
"The implementation of the SBS is tracking to our plan and
validating the underlying premises for switching to this mode of
production. Operating all the assets of the plant has aided us
greatly in solving issues that were impeding the ramp-up of
isobutanol using one fermenter in isolation, specifically the
consistent management of infections and the handling of recycle
streams and solids," said Dr. Patrick Gruber, Gevo's CEO.
The following are some of the key results achieved thus far:
Isobutanol
- Successfully produced isobutanol at initial run rates of tens
of thousands of gallons per month in a commercial-scale one million
liter fermenter (in line with previous guidance);
- Isobutanol yields have reached >90% of target based on
starch content, up from approximately 70% prior to running
SBS;
- Reduced isobutanol batch cash costs by >25% since beginning
SBS, with a clear path towards targeted economic rates;
- Produced and sold IDGs® (animal feed from isobutanol
production);
- Achieved 100% recycle streams (up from 90%), while consistently
producing sterile mash, controlling infections and growing
isobutanol producing yeast;
- GIFT® continues to work as designed (controlling the
concentration of isobutanol to desired levels in the fermentation
broth, by removing and collecting the isobutanol for further
downstream processing); and
- No yeast cross-contamination from the ethanol system.
Ethanol
- Produced ethanol at a run rate of approximately 1.5 million
gallons per month (above previous guidance of 1.25 million gallons
per month);
- Generating revenue of more than $3 million per month at
Luverne; and
- No yeast cross-contamination from the isobutanol system.
"By operating in the SBS we have been able to mitigate the
recycle, infection, solids handling and plant operability issues.
It is satisfying to see that our yeast and GIFT technology work
well at commercial scale. Our yields and costs have improved very
quickly. And while we have more work to do, I am pleased with our
overall progress and look forward to continuing to increase the
production levels of isobutanol at the plant. By running the SBS we
have dramatically reduced our cash burn at the plant and we are
targeting breakeven at Luverne by year end," continued Dr.
Gruber.
"In addition, we are very pleased with the United States
District Court's recent decision to stay the patent litigation
involving U.S. Patent Nos. 7,851,188 and 7,993,889 that was
scheduled to begin on July 21, 2014. This decision should
significantly decrease Gevo's legal costs for the foreseeable
future. Taken in combination with the improved cash flow profile of
the Luverne operations in the SBS, this should dramatically
decrease our overall corporate burn going forward."
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, 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,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the Securities Exchange Commission 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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