Gevo Signs Heads of Agreement with Lufthansa for Commercial Supply of Renewable Jet Fuel
September 07 2016 - 8:00AM
Gevo, Inc. (NASDAQ:GEVO), announced today that it has entered into
a heads of agreement with Deutsche Lufthansa AG (“Lufthansa”) to
supply Gevo’s alcohol-to-jet fuel (ATJ) from its first commercial
hydrocarbons facility, intended to be built in Luverne, MN.
The terms of the agreement contemplate Lufthansa purchasing
up to 8 million gallons per year of ATJ from Gevo, or up to 40
million gallons over the 5 year life of the off-take agreement.
The heads of agreement establishes a selling
price that is expected to allow for an appropriate level of return
on the capital required to build-out Gevo’s first commercial scale
hydrocarbons facility. The heads of agreement is non-binding
and is subject to completion of a binding off-take agreement and
other definitive documentation between Gevo and Lufthansa, expected
to be completed in the next few months.
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, Minnesota. 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.
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; Gevo’s and
Lufthansa’s intent to reach a definitive, legally binding, off-take
agreement; and Gevo’s plans to construct a commercial
hydrocarbon facility to produce ATJ. 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 Gevo’s
ability to enter into a definitive binding agreement with Lufthansa
reflecting the terms of the heads of agreement, or at all; and
Gevo’s ability to finance and successfully complete the build out
of a commercial hydrocarbon facility and increase production of
ATJ. 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
gevo@energytechinvestor.com
@ShawnEnergyTech
www.energytechinvestor.com
Gevo (NASDAQ:GEVO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gevo (NASDAQ:GEVO)
Historical Stock Chart
From Jul 2023 to Jul 2024