Gevo enters into long-term supply agreement for renewable isooctane with HCS Group: worth up to $180M
Gevo, Inc. and HCS Group have entered into a long-term, definitive, binding and bankable renewable isooctane purchase and sale agreement.
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%, 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, 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.
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.—Dr. Uwe Nickel, CEO of HCS Group
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.
Gevo is a next-generation low-carbon fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. Gevo is focused on the development and production of mainstream fuels such as 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.