Gevo’s first isobutanol plant is located in Luverne, Minn. In September 2010, Gevo acquired the facility and subsequently retrofitted it with Gevo’s GIFT® technology.
The plant is currently operated in Side-by-Side mode, whereby it has the capability of producing both ethanol and isobutanol concurrently. Gevo is targeting producing 750,000 to 1 million gallons of isobutanol in 2016, while simultaneously producing approximately 15-17 million gallons of ethanol.
Gevo has proven that isobutanol can be produced economically by fermentation. The result is that once the technology is fully optimized, Gevo expects the EBITDA profit margin for isobutanol to be approximately $0.50 to $1.00 per gallon. Achievement of this margin would be due to high production efficiencies, combined with expected higher selling prices that reflect the intrinsic value created by isobutanol.