Gevo Inks Largest Supply Agreement To-Date for Renewable Fuels
December 07 2021 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) has a new partner: Kolmar Americas Inc.
(“Kolmar”). Kolmar and Gevo have entered into a financeable fuel
supply agreement for 45 million gallons per year (on a neat basis)
of renewable, energy-dense liquid hydrocarbons that are expected to
be produced from Gevo’s second Net-Zero production facility,
Net-Zero 2. Kolmar is a wholly owned subsidiary of Kolmar Group AG
that is a privately held service provider, manufacturer, and
marketer of renewable fuels headquartered in Zug, Switzerland.
The agreement with Kolmar demonstrates that Gevo is continuing
to diversify its partner base geographically as it grows its
presence on the global stage. The fuel supply agreement provides
for Gevo to supply Kolmar with renewable hydrocarbons, including
sustainable aviation fuel (“SAF”) and isooctane that is a key
component of renewable premium gasoline.
Gevo expects to supply 45MGPY of renewable fuels to Kolmar from
its Net-Zero 2 plant that is currently being developed in the
Mid-West of the United States. Deliveries to Kolmar would represent
the entire plant output based on Net-Zero 2’s current design. Under
the fuel supply agreement, Net-Zero 2 is expected to generate
approximately US$300 million per year of gross revenue, including
revenue from environmental benefits. With protein and corn oil
co-product sales, Net-Zero 2 is estimated to generate gross
revenues of approximately US$350 million per year. Over the eight
years of the agreement, Net-Zero 2 all-in, gross revenue is
estimated to be up to approximately US$2.8 billion, inclusive of
renewable fuels and related products for the food chain.
According to Raf Aviner, President of Kolmar Americas, Inc.: “In
addition to our traditional businesses, Kolmar is dedicated to
commercial development and optimization of leading-edge low carbon
products and technologies. We are excited to align Kolmar’s global
supply reach, logistics, and regulatory capabilities with GEVO’s
Net-Zero 2 production of cutting-edge low carbon aviation and
gasoline fuels to get these advanced, sustainable products to the
varied global markets that need and want them the most.”
“With this agreement, Kolmar is investing in the future, and
this kind of foresight makes for another excellent partner and
should make clear to our investors that we have traction in the
market,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive
Officer. “We have great potential in our business system to
reinvent what is possible. Our system translates well because we
actively address food security with the high-value nutritional
products that our process generates simultaneously as we produce
our advanced renewable fuels. Both products come from the same acre
of farmland and add to our environmental benefit.”
The fuel supply agreement with Kolmar is subject to certain
important terms and conditions. A copy of the fuel supply agreement
with Kolmar has been filed with the U.S. Securities and Exchange
Commission on Form 8-K.
About GevoGevo’s mission is to transform
renewable energy and carbon into energy-dense liquid hydrocarbons.
These liquid hydrocarbons can be used for drop-in transportation
fuels such as gasoline, jet fuel and diesel fuel, that when burned
have potential to yield net-zero greenhouse gas emissions when
measured across the full life cycle of the products. Gevo uses
low-carbon renewable resource-based carbohydrates as raw materials,
and is in an advanced state of developing renewable electricity and
renewable natural gas for use in production processes, resulting in
low-carbon fuels with substantially reduced carbon intensity (the
level of greenhouse gas emissions compared to standard petroleum
fossil-based fuels across their life cycle). Gevo’s products
perform as well or better than traditional fossil-based fuels in
infrastructure and engines, but with substantially reduced
greenhouse gas emissions. In addition to addressing the problems of
fuels, Gevo’s technology also enables certain plastics, such as
polyester, to be made with more sustainable ingredients. Gevo’s
ability to penetrate the growing low-carbon fuels market depends on
the price of oil and the value of abating carbon emissions that
would otherwise increase greenhouse gas emissions. Gevo believes
that its proven, patented technology enabling the use of a variety
of low-carbon sustainable feedstocks to produce price-competitive
low-carbon products such as gasoline components, jet fuel and
diesel fuel yields the potential to generate project and corporate
returns that justify the build-out of a multi-billion-dollar
business.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI. Learn more at Gevo’s
website: www.gevo.com
About KolmarKolmar Americas, Inc. a wholly
owned subsidiary of Kolmar Group AG, is a leading petrochemical,
renewable fuels and liquid energy products trader and producer,
headquartered in Shelton, Connecticut. Kolmar’s product slate
includes crude oil to light petroleum derivatives, biodiesel,
cellulosic fuels, renewable diesel, SAF, and biomass/circular
carbon petrochemical feeds. Kolmar Group AG is a global
company with twenty offices worldwide and dedicated storage
capacity located in the world’s main energy and chemicals
hubs.
Learn more at Kolmar’s website: www.kolmargroup.com or contact
press@kolmar-americas.com
Forward-Looking StatementsCertain 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, without limitation, including Gevo’s technology, the fuel
supply agreement with Kolmar, the estimated revenue that Gevo might
earn from the Kolmar fuel supply agreement, Gevo’s estimated value
of the fuel supply agreement with Kolmar, Gevo’s Net-Zero 2
project, Gevo’s ability to develop, finance and construct Net-Zero
2 using the fuel supply agreement with Kolmar, Gevo’s ability to
produce renewable hydrocarbons, the attributes of Gevo’s products,
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, 2020, 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.
Gevo Media ContactHeather L. Manuel+1
720-418-0085IR@gevo.com
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