Gevo Enters Joint Development Agreement with LG Chem to Develop Bio-Propylene
April 12 2023 - 4:01PM
Gevo, Inc. (NASDAQ: GEVO) and LG Chem, Ltd. (KRX: 051910), a
leading global chemical company committed to producing sustainable
products, announced today that they have entered into a joint
development agreement (the “Agreement”) to develop bio-propylene
for renewable chemicals using Gevo’s Ethanol-to-Olefins (ETO)
technology.
Gevo’s proprietary ETO technology can target carbon neutral or
carbon negative drop-in replacements for traditional
petroleum-based building blocks called olefins, including
bio-propylene, that can be used for renewable chemicals or fuels
including sustainable aviation fuel. These plant-based, renewable
olefins would be derived from atmospheric CO2 captured through
photosynthesis and are expected to deliver the same performance in
final products on the market today. Under the terms of the
Agreement, Gevo will provide the core enabling technology it has
developed for renewable olefins to be produced from low-carbon
ethanol and together the parties will collaborate to accelerate the
pilot research, technical scale-up, and commercialization of
bio-propylene.
“We believe Gevo’s ethanol to olefin’s process can be more
capital and energy efficient than existing technologies to make the
renewable olefin intermediates used in the production of chemicals
or fuels,” said Gevo’s Chief Carbon and Innovation Officer, Dr.
Paul Bloom. “Our partnership with LG Chem is a great example of how
we intend to accelerate development and commercialization of our
ETO technology to enable renewable chemicals with our world class
partner while Gevo plans to deploy the technology to lower the cost
and carbon intensity for SAF and other drop-in fuels like renewable
diesel.”
“Our joint development agreement with Gevo helps LG Chem expand
sustainable and eco-friendly future businesses by reinforcing our
business portfolio centered on bio-based raw materials,” said Noh
Kug-lae, President of LG Chem’s Petrochemical Business.
Bio-propylene can be used to replace fossil-based products as an
eco-friendly raw material for various plastic products and is
expected to play a pivotal role in the rapid growth of the
bioplastic market and circular economy. Once commercialization is
achieved, bio-propylene could be used as a drop-in replacement for
use in automobile interiors and exteriors, flooring, and diapers to
replace petroleum products with bio-based materials with a low or
negative carbon footprint.
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.
About LG ChemLG Chem is a leading global
chemical company with a diversified business portfolio in the key
areas of petrochemicals, advanced materials, and life sciences. The
company manufactures a wide range of products from high-value added
petrochemicals to renewable plastics, specializing in cutting-edge
electronic and battery materials, as well as drugs and vaccines to
deliver differentiated solutions for its customers. LG Chem is
committed to reaching carbon-neutral growth by 2030 and net-zero
emissions by 2050 by managing the impacts of climate change and
making positive contributions to society through renewable energy
and responsible supply chains. Headquartered in Seoul, Korea, LG
Chem has multiple operation sites worldwide and generated
consolidated revenue of KRW 51.9 trillion (USD 42.1 billion) in
2022. For more information, please visit www.lgchem.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, including, without limitation, Gevo’s ETO technology, the
Agreement with LG Chem, Ltd., whether the ETO technology will be
commercialized, the benefits that might accrue as a result of the
Agreement with Lg Chem, Ltd., and other statements that are not
purely statements of historical fact. These forward-looking
statements are made based on 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, 2022, 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 ContactHeather L.
Manuel+1 303-883-1114PR@gevo.com
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