Gevo and Mansfield Oil sign commercial off-take and strategic alliance agreements for renewable isobutanol
Gevo, Inc. has entered into a strategic marketing alliance with Mansfield Oil Company to distribute isobutanol-based fuel into the petroleum market. In addition the companies signed a commercial off-take agreement—Gevo’s second commercial off-take agreement to date and its first in the fuel industry.
The agreement has three main component: the first two are part of a five-year contract that allows Mansfield to blend Gevo’s isobutanol for its own use, and to be a distributer of Gevo’s isobutanol. The third is a three-year contract, under which a Mansfield subsidiary will provide supply chain services that include logistics management, customer service support, invoicing and billing services.
Mansfield markets and distributes fuel to thousands of commercial customers across all 50 states and has over 900 supply points across the country.
Earlier this month, Gevo entered into its first definitive commercial off-take agreement with Sasol Chemical Industries Limited, with a goal of providing cost-competitive, reduced carbon footprint alternatives for consumer goods such as paint, ink and coating applications. Sasol, a $32-billion South African-based chemicals company, will sell Gevo’s isobutanol for use as a chemical intermediate.
Gevo has developed and patented a process (Gevo Integrated Fermentation Technology, GIFT) which converts fermentable sugars from sustainable feedstocks into isobutanol. The company is converting existing ethanol plants into biorefineries to make renewable building block products for the chemical and fuel industries.
Isobutanol—a Renewable Solution For The Transportation Fuels Value Chain (Gevo white paper)