Gevo Signs Strategic Alliance Memorandum of Understanding With Praj
March 24 2015 - 9:00AM
Gevo, Inc. (Nasdaq:GEVO), announced today that Praj Industries
Limited ("Praj") has signed a memorandum of understanding (MOU) to
become a Gevo licensee for producing renewable isobutanol at
sugar-based ethanol plants.
Under the MOU, Praj will undertake to license up to 250 million
gallons of isobutanol capacity for sugar-based ethanol plants over
the next ten years. Gevo will market the isobutanol produced by
Praj's sub-licensees. Praj will also contribute process
engineering and equipment services to expand isobutanol capacity at
Gevo's plant in Luverne, Minn, as well as to improve yields and
optimize energy consumption at the facility.
Praj is a global leader in the ethanol and brewery industries,
in addition to the industrial wastewater treatment, pharma, biotech
and cosmetic sectors. It has blue-chip customers across five
continents and sixty countries. Praj has core expertise and
experience is in process and integration engineering, as well as
equipment and system manufacturing, with a strong focus on
sustainable development with the help of in-house state-of-the-art
R & D facilities to back up process expertise. Praj's fiscal
year 2014 group revenues were approx INR 10 billion (equivalent to
approximately US$160 million), and employs over 1,000 people
globally, with 85% of its workforce comprising engineers and
technical experts across its core sectors.
"Praj has conducted significant diligence on Gevo's corn
starch-based isobutanol technology and we believe in the
technology," said Pramod Chaudhari, Executive Chairman of Praj.
"Isobutanol has a substantial market opportunity given that
isobutanol is a high performance biofuel that can solve many of the
issues of 1st generation biofuels. It also enables a true
biorefinery model wherein a number of specialty chemicals and
bio-products can be produced using isobutanol as a feedstock. We
look forward to creating a new opportunity for 1st generation
sugar-based ethanol plant owners, as well as accelerating the use
of 2nd generation cellulosic feedstocks to produce isobutanol."
"We are very pleased to be working with Praj and having them
become an important licensee and partner. This new strategic
alliance demonstrates the flexibility of Gevo's GIFT® technology to
convert a wide range of sugar sources into isobutanol. It also
continues to validate the interest in licensing our intellectual
property portfolio as we look to transition our business to focus
more on a licensing model," said Dr. Patrick Gruber, Gevo's Chief
Executive Officer.
About 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, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a 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, 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 Praj Industries Limited
Praj is a global process solutions company driven by innovation
and integration capabilities, offers solutions to add significant
value to bio-ethanol facilities, brewery plants, water &
wastewater treatment systems, critical process equipment &
systems, high purity solutions and bioproducts. Over the past three
decades, Praj has focused on environment, energy and agri process
led applications. Praj has been a trusted partner for process
engineering, plant & critical equipment and systems with over
600 references across five continents. Solutions offered by Praj
are backed by its state of the art R&D Center called Matrix.
Led by an accomplished and caring leadership, Praj is a socially
responsible corporate citizen. Praj is listed on the Bombay and
National Stock Exchanges of India. For more information, visit
www.praj.net.
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 relate to a variety of matters, including, without
limitation, statements regarding the completion, timing and size of
the proposed public offering, Gevo's anticipated proceeds from the
offering, and its use of those proceeds 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 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, 2013,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the SEC by Gevo.
CONTACT: Media & Investor Contact:
Mike Willis
Gevo, Inc.
T: (720) 267-8636
mwillis@gevo.com
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