Gevo enters definitive off-take agreement with Sasol Chemical Industries Limited for renewable isobutanol
Gevo and Sasol Chemical Industries Limited (Sasol) have entered into a definitive commercial isobutanol off-take agreement commencing in 2012. This three-year agreement anticipates the utilization of the majority of Gevo’s 2012 and 2013 planned production capacity and includes specific volume and price commitments.
Gevo broke ground on the its Luverne, MN retrofit on 31 May 2011 and construction is proceeding on schedule. On June 15, 2011 Gevo and Redfield Energy, LLC (Redfield) entered into a definitive joint venture (JV) to convert Redfield’s 50 mgpy ethanol plant into an isobutanol plant. This JV plant is expected to be online by the end of 2012.
In June 2011, Gevo and Toray Industries, Inc. announced the successful production of fully renewable and recyclable polyethylene terephthalate (PET) made from Gevo’s isobutanol. In June 2011, Lanxess Inc. highlighted Gevo’s renewable isobutanol as an important feedstock in the production of synthetic rubber at its annual shareholders' meeting held in Cologne, Germany.
On 26 July, Gevo and South Hampton Resources (SHR) signed an agreement to build a hydrocarbon demonstration plant at SHR’s facility near Houston, TX. This plant is designed to produce jet fuel and other hydrocarbons from Gevo’s renewable isobutanol to facilitate ASTM certification requirements including jet engine testing.
Because of its quickly evolving technology, Gevo has made the strategic decision to add an enhanced Yeast Seed Train to the Luverne, MN facility. This unit is expected to reduce the cycle times required to deploy advanced yeast strains. The investment in the enhanced Yeast Seed Train is estimated to be up to $10 million.