Gevo Announces Sales of Isooctene to BCD Chemie, a Subsidiary of Brenntag
ENGLEWOOD, Colo., Sept. 28, 2015 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) announced it 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 over $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.
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," said 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. Renewable hydrocarbons are exact replacements to petroleum-derived hydrocarbons, so there is no compromise on performance. We are very pleased to be working with BCD Chemie. The European market is an ideal place to be marketing many of our specialty fuels and chemicals products," said Dr. Patrick Gruber, Gevo's Chief Executive Officer.
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. 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, 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 has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society's needs for plentiful food and clean air and water.
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. In 2014, the company, which has a global workforce of more than 13,500, generated sales of EUR 10.0 billion (USD 13.3 billion). Brenntag connects chemical manufacturers and chemical users. The company supports its customers and suppliers with tailor-made distribution solutions for industrial and specialty chemicals. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to around 170,000 customers. This includes specific application technology, an extensive technical support and value-added services such as just-in-time delivery, product mixing, formulation, repackaging, inventory management and drum return handling. Long-standing experience and local excellence in the individual countries characterize the global market leader for chemical distribution.
About BCD Chemie GMBH
BCD Chemie GmbH, headquartered in Hamburg, Germany is one of the leading specialty chemical distributors in Europe. Linking world-class chemical manufacturers and chemical users in all major applications, BCD Chemie services more than 10.000 customers. Based on its wide ranging application know-how, the company provides product solutions and value-adding services to its partners, including mixing and blending, supply-chain-management, tailor-made services and extensive technical support.
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 that are not purely statements of historical fact. These forward-looking statements are made on the basis of 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, 2014, as amended, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo.
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