Gevo Signs Agreement with Musket Corporation to Supply Isobutanol for Gasoline Blending
June 16 2016 - 9:15AM
Gevo, Inc. (NASDAQ:GEVO), announced today that it has entered into
an agreement with Musket Corporation to supply isobutanol for
blending with gasoline. Musket is a national fuel distributor
under the umbrella of the Love’s Family of Companies. Initial
target markets are expected to include the marine and off-road
markets in Arizona, Nevada, and Utah.
The supply program is expected to begin with
railcar quantities of isobutanol (a railcar holds approximately
28-29 thousand gallons). As isobutanol production ramps at Gevo’s
production facility in Luverne, Minn., and isobutanol-blended
gasoline becomes more established at retail outlets, Musket expects
to expand its purchase quantities. Musket is initially targeting
retail pumps at Lake Havasu in Arizona, followed by other large
marine markets such as Lake Powell, Lake Mead, as well as other
large lakes in the western states. Later, Musket also
anticipates expanding distribution into its core Oklahoma
market.
Gasoline demand for the marine market in the
U.S. is estimated to be approximately 1.7 billion gallons per
year1. The National Marine Manufacturers Association has endorsed
the use of Gevo’s isobutanol in the marine fuel market because of
the superior properties of isobutanol-blended gasolines, namely:
prevent moisture absorption and phase separation; reduce engine
corrosion; provide higher energy content; and contain a high octane
rating.
“We believe Musket is an excellent partner to
expand the use of isobutanol in gasoline blends, as our isobutanol
production at Luverne builds. Musket and Love’s are significant
players in fuel distribution and retail in the U.S., so they have
great reach to get our isobutanol into the market,” said Dr.
Patrick Gruber, Chief Executive Officer of Gevo.
1 U.S. Energy Information Administration
Annual Energy Outlook 2014
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 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, Minn. 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.
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 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, the properties of
Gevo’s isobutanol, the properties of isobutanol-blended gasolines,
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 and estimates concerning the amount
of gasoline demand for the marine market in the U.S. 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, 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.
Media Contact
David Rodewald
The David James Agency, LLC
+1 805-494-9508
gevo@davidjamesagency.com
Investor Contact
Shawn M. Severson
EnergyTech Investor, LLC
+1 415-233-7094
shawn@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
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