Gevo and HCS Group Enter Into Game-Changing, Long-Term Supply Agreement for Renewable Isooctane Worth Up to $180 Million
February 27 2019 - 6:00AM
Gevo, Inc. (NASDAQ: GEVO) announced today that HCS
Group and Gevo have entered into a long-term, definitive, binding
and bankable renewable isooctane purchase and sale agreement, dated
February 21, 2019. HCS Group will be supplied exclusively for sales
of Gevo’s renewable isooctane into high-end applications ranging
from high purity solvents to specialty fuels under its Haltermann
Carless brand, excluding use of isooctane for on-road
transportation fuels. Gevo’s renewable isooctane is a low-carbon,
drop-in blending component for gasoline and has the potential to
reduce greenhouse gases by as much as 70 percent, well within the
standards established by the EU Renewable Energy Directive.
This long-term, binding purchase and sale agreement with HCS
Group is an important step forward in Gevo’s previously-announced
strategy to build out Gevo’s advanced biofuels production facility
in Luverne, Minnesota, USA, to increase the production of renewable
isobutanol and renewable jet fuel as well as isooctane.
Pursuant to the terms of the agreement, Gevo will supply
low-carbon, renewable isooctane to HCS Group over ten years if
certain conditions are met, including the expansion of Gevo’s
isooctane production capabilities at its advanced biofuels
production facility in Luverne.
According to Patrick R. Gruber, Gevo’s Chief Executive Officer,
this agreement represents a significant milestone in Gevo’s crusade
to help leading consumer brands reduce greenhouse gas emissions
through decarbonizing transportation fuel. “This is a
game-changing, bankable agreement for Gevo and another step forward
to delivering on our promise to address the need for low-carbon
fuels while also meeting sustainability requirements for our
customers, to reduce their carbon foot print,” Dr. Gruber said.
“This agreement strengthens our partnership with HCS Group that
began with a prior agreement signed in 2017. Our technology and our
renewable isooctane have proven themselves in highly demanding
niche applications. We now want to scale substantially in order to
enable rolling-out our renewable isooctane to a variety of high-end
fuel and solvent applications.”
Dr. Uwe Nickel, CEO of HCS Group, confirms: “We have been
impressed with the quality and the consistency of Gevo’s renewable
isooctane, proving its value in the most demanding, high-end race
fuel applications This long-term agreement and the capacity
expansion enables us to satisfy growing demand for our sustainable
ECO products in mass markets driven by global, blue-chip accounts.
We see strong interest for our advanced bio-based products in the
outdoor power equipment and the cosmetics industries as well as in
a wider range of fuel applications.”
HCS Group is a leading global provider of solutions for high
value specialty hydrocarbons and is active in a broad range of
markets, such as automotive, pharmaceutical and agrochemicals. HCS
Group, with its key brand Haltermann Carless, operates a network of
9 state of the art facilities for refining, processing and blending
in Germany, the UK, France and in the US.
A copy of the renewable isooctane purchase and sale agreement,
dated February 21, 2019, between HCS Group and Gevo has been filed
with the U.S. Securities and Exchange Commission on Form 8-K.
To access the Form 8-K, please visit
https://www.sec.gov/edgar/searchedgar/companysearch.html.
About Gevo
Gevo is a next generation “low-carbon” fuel company focused on
the development and commercialization of renewable alternatives to
petroleum-based products. Low-carbon fuels reduce the carbon
intensity, or the level of greenhouse gas emissions, compared to
standard fossil-based fuels across their lifecycle. The most common
low-carbon fuels are renewable fuels. Gevo is focused on the
development and production of mainstream fuels like gasoline and
jet fuel using renewable feedstocks that have the potential to
lower greenhouse gas emissions at a meaningful scale and enhance
agricultural production, including food and other related products.
In addition to serving the low-carbon fuel markets, through Gevo’s
technology, Gevo can also serve markets to produce chemical
intermediate products for solvents, plastics, and building block
chemicals. Learn more at our website: www.gevo.com.
About HCS Group and Haltermann
Carless HCS Group is one of the leading manufacturers
of high-quality hydrocarbons and specialty chemicals. The company
employs about 500 people worldwide. The products are sold worldwide
through the traditional brands Haltermann Carless, ETS
Racing and EOS. HCS Group belongs to H.I.G. Europe, a
subsidiary of the US private equity investment company, H.I.G.
Capital.
The brand Haltermann Carless, one of the oldest
chemical companies in the world, provides innovative
hydrocarbon-based specialty products and solvents and associated
services to best serve its customers. The company operates a
network of state-of-the-art facilities for refining, processing and
blending to produce a wide variety of specialty products in key
business areas: Automotive, Middle Distillates, Oil & Gas,
Pentanes, Performance Fuels, Performance Solvents and Special
Aromatics.
For more information
visit: http://www.h-c-s-group.com; www.haltermann-carless.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, including, without
limitation, statements related to the expected revenue that Gevo
will earn pursuant to the purchase and sale agreement with HCS
Group, the quantities of isooctane Gevo will sell pursuant to the
purchase and sale agreement, the term or length of the purchase and
sale agreement, whether Gevo will sell any amount of isooctane
pursuant to the purchase and sale agreement, Gevo’s ability to
produce the quantities of isooctane referenced in this press
release, Gevo’s ability to obtain financing to expand production
capabilities at its Luverne, MN advanced biofuels production
facility, 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, 2017, as amended, 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.
Investor and Media
Contact Shawn M. Severson Integra Investor Relations +1
415-226-7747 gevo@integra-ir.com |
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