Gevo and Land O’Lakes Purina Feed Sign Off-Take and Marketing Agreement
January 10 2012 - 7:00AM
Business Wire
Gevo, Inc. (NASDAQ: GEVO), a renewable chemicals and advanced
biofuels company, today announced it had signed an off-take and
marketing agreement with Land O’Lakes Purina Feed LLC for the sale
of distillers grains from Gevo’s isobutanol production facility
(isobutanol distillers grains or, iDGs™) at Luverne, Minnesota.
Land O’Lakes Purina Feed will be the exclusive marketer of Gevo’s
isobutanol dried and modified wet distillers grains for the animal
feed market. Further, the companies plan to work together to
explore opportunities to upgrade the material for special
value-added applications in feed markets.
“Corn is interesting as a feedstock because it has both protein
and carbohydrates. Producing protein and animal feed from
agriculture is extremely important, and selling the protein for
feed, and using the excess carbohydrate for chemicals and fuels
makes great sense given the fact that almost all of the nutritional
value of corn can be captured in the animal feed product,” said
Patrick Gruber, Ph.D., CEO of Gevo. “We are looking forward to
working with Land O’Lakes Purina Feed, the country’s leading brand
and largest producer of animal feed, to establish a market for and
explore ways to add nutritional value to our iDGs™.”
“When a partnership is developed between the technological
expertise of Gevo and the research capabilities and customer
networks of Land O'Lakes Purina Feed, it presents another
opportunity to add value to grain farmers and livestock producers
alike,” said John Hany, director, direct ship merchandising and DDG
marketing for Land O’Lakes Purina Feed. “We are very excited about
our future together and the potential gains that may be had by all
involved.”
According to the USDA’s Economic Research Service, one metric
ton of dried distillers grain can replace on average 1.22 metric
tons of animal feed consisting of corn and soybean meal in the USA.
Distillers grains have higher concentrations of protein and
nutrients, allowing them to displace a disproportionate amount of
corn and soybean meal in animal feed. Gevo's fermentation process
converts only the carbohydrates (corn starch) into isobutanol while
capturing 100 percent of the corn protein, the most valuable part,
for animal nutrition. The feed value of the iDGs™ reduces Gevo's
net carbohydrate costs.
About Gevo
Gevo is converting existing ethanol plants into biorefineries to
make renewable building block products for the chemical and fuel
industries. The Company plans to convert renewable raw materials
into isobutanol and renewable hydrocarbons that can be directly
integrated on a “drop in” basis into existing chemical and fuel
products to deliver environmental and economic benefits. Gevo is
committed to a sustainable biobased economy that meets society’s
needs for plentiful food and clean air and water. For more
information, visit www.gevo.com
About Land O’Lakes, Inc.
Land O’Lakes, Inc. (www.landolakesinc.com) is a national,
farmer-owned food and agricultural cooperative with 2010 sales of
$11 billion. Land O'Lakes is the nation’s second-largest
cooperative and number 218 on the Fortune 500. The company does
business in all 50 states and more than 60 countries. It is a
leading marketer of a full line of dairy-based consumer,
foodservice and food ingredient products across the United States;
serves its international customers with a variety of food and
animal feed ingredients; and provides farmers and ranchers with an
extensive line of agricultural supplies (feed, seed, and crop
protection products) and services. Land O’Lakes also provides
agricultural assistance and technical training in more than 25
developing nations.
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, 2010,
and in subsequent reports on Forms 10-Q and 8-K and other filings
made with the SEC by Gevo.
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