Gevo and Bio-Fuel Energy announce alliance to pursue large-scale Isobutanol production
Gevo, Inc., a US-based renewable chemicals and next-generation bio-fuels company, has entered into a collaboration with BioFuel Energy Corp., operator of two 110 MGPY ethanol production facilities in Fairmont, Minn. and Wood River, Neb., to pursue their common goal of the high-volume production of isobutanol.
"The capacity of Bio-Fuel's plants would allow us to begin delivering isobutanol at the scale that refinery customers are likely to demand," said Dr. Patrick Gruber, CEO of Gevo.
"We have the potential to be at the forefront of the Advanced Biofuel market. BioFuel Energy recognizes this potential and has agreed to explore a possible retrofit of their assets to produce isobutanol," Gruber said.
Scott Pearce, CEO of BioFuel Energy, explained that his company's philosophy "has always been to actively explore emerging biofuel technologies, particularly those with the potential to transform our industry."
"Building on our initial work together over the past several months, we believe that collaborating with Gevo makes a lot of sense as a potential avenue to becoming a leader in second-generation biofuels," he said.
Although Gevo and Biofuel Energy signed a Development Agreement earlier this year, the companies only recently completed their preliminary evaluation of technical feasibility.
The companies plan to continue working to develop large-scale production of isobutanol at an existing or future BioFuel plant. Specific objectives include a more rigorous assessment of technical feasibility and the development of timelines for engineering, regulatory approvals, financing and construction.
The two companies will also explore the potential for seeking Advanced Biofuel status for isobutanol, which would allow domestic corn-based biofuels to compete more directly with biodiesel and imported ethanol produced from sugarcane.
Gevo recently began the start up of its first commercial-scale isobutanol plant in Luverne, Minn. with plans for another startup in 2013 at its Redfield, SD joint venture. By working with BioFuel Energy, Gevo is continuing to execute on its growth strategy and setting a clear path to achieving its projected volume targets.
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