Retrofitting strategy and economics

Our strategy of retrofitting existing ethanol facilities allows us the opportunity to capitalize on the approximately 20 billion gallons per year of operating ethanol production capacity worldwide. In North America, we will work with our exclusive contractor, ICM.

Gevo believes that its low cost commercial deployment strategy will allow rapid expansion of production capacity in response to customer demand. Gevo’s technology platform is designed to give current ethanol producers an opportunity to increase their operating margins through the retrofit of their pre-existing facilities.

Additionally, Gevo’s capability to convert sugars from multiple renewable feedstocks into isobutanol will enable us to leverage historically low-cost grain feedstocks (e.g., corn) and to eventually expand our production capacity into international markets that use sugar cane or other feedstocks which are prevalent outside of the U.S.

We plan to expand our production capacity beyond our initial commercial facility to produce and sell over 350 million gallons per year (MGPY) of isobutanol by 2015.

  • Demonstration facility in St. Joseph: Gevo’s production process was demonstrated at a commercially relevant scale with the retrofit of ICM’s one MGPY ethanol facility in St. Joseph, Missouri. We believe that the successful completion of this demonstration project illustrates that Gevo’s model for repurposing ethanol plants for scalable production of isobutanol can be accomplished rapidly and with a low up-front capital investment.
  • First commercial production facility: In September 2010, Gevo acquired its first production facility in Luverne, Minnesota. We expect to begin commercial production of isobutanol at the Luverne facility in the first half of 2012.

Future plans for capacity growth

Gevo is in discussions with a number of other ethanol producers and has plans to bring several hundred million gallons of isobutanol production capacity online in the next few years. If you have ethanol capacity and are interested in learning more about working with Gevo, please contact us at email hidden; JavaScript is required.