Gevo begins selling renewable isooctene to BCD Chemie; fuel applications
29 September 2015
Gevo has begun selling renewable isooctene to BCD Chemie, a subsidiary of Brenntag. Initial orders in 2015 are expected to result in revenues to Gevo of more than $1 million. The isooctene will be produced at Gevo’s biorefinery in Silsbee, Texas, derived from isobutanol produced at Gevo’s plant in Luverne, Minn. Gevo’s biorefinery is operated in conjunction with South Hampton Resources.
BCD Chemie is targeting applications in Europe with Gevo’s isooctene. This commences a relationship with BCD Chemie that may include the marketing of other hydrocarbon products, including isooctane and jet fuel, and builds on Gevo’s existing partnership with Brenntag in Canada, which is currently selling Gevo’s isobutanol as a solvent in Canada.
Isobutanol converts readily to isobutylene, which can be dimerized to form isooctene. Isooctene, in turn, can be hydrogenated to form isooctane.
Isooctene and isooctane can be used as high-octane fuel blend components used in gasoline formulations. Higher octane ratings in fuel are important for high performance engines to minimize engine knock. The additional value of these products are reflected in the market price, which in Europe can range up to $7.00-$10.00 per gallon for petroleum-based isooctene and isooctane.
Renewable hydrocarbons such as isooctene can directly replace petroleum-based hydrocarbons without any compromise of performance. The use of these renewable hydrocarbons enables companies to meet regulatory requirements for renewable content in fuels while satisfying the performance requirements of their customers.
BCD Chemie has begun purchasing continuously increasing quantities of renewable hydrocarbons from Gevo for distribution to selected customers. These customers are very excited to utilize renewable components in their products as they are green replacements for fossil hydrocarbons, which benefit the environment without any performance loss. We are looking forward to developing this market together with Gevo in Europe, as this fits our business plan of expanding sales of high performance chemicals and substances throughout Europe.
—Denis Hamann, Project Manager for BCD Chemie
Gevo appears to be one of the only sources of renewable isooctene and isooctane globally. As a result, the market has been very excited by these product offerings, with demand outpacing our ability to produce at our biorefinery in Silsbee.
—Dr. Patrick Gruber, Gevo CEO
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 via fermentation, 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, Minn. 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 partners includeThe Coca-Cola Company, Toray Industries Inc. and Total SA, among others.
Brenntag, the global market leader in chemical distribution, covers all major markets with its extensive product and service portfolio. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 490 locations in 72 countries. BCD Chemie GmbH, headquartered in Hamburg, Germany is one of the leading specialty chemical distributors in Europe.
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