Gevo and South Hampton Resources to Build Hydrocarbon Processing Demonstration Plant
ENGLEWOOD, Colo., Jul 26, 2011 (BUSINESS WIRE) -- Gevo, Inc. (NASDAQ: GEVO), a leading renewable chemicals and advanced biofuels company, today announced it plans to work with South Hampton Resources, Inc., a subsidiary of Arabian American Development Co. (NASDAQ: ARSD), to build a hydrocarbon processing demonstration plant at their facility just outside of Houston in Silsbee, Texas. This demonstration plant is expected to process up to 10,000 gallons of Gevo's isobutanol per month into a variety of renewable hydrocarbon materials including jet fuel for engine testing, isooctane for gasoline, isooctene and paraxylene for polyethylene terephthalate (PET) and will supply other potential customers with material for product qualification and evaluation. The demonstration plant is slated for completion before the end of 2011. The contract between the companies is for two years with one-year extensions thereafter.
"This demonstration plant allows us to complete the value chain from isobutanol to renewable hydrocarbon fuels and chemical intermediates which is one of our key strategic objectives," said Patrick Gruber, Ph.D., CEO of Gevo. "With the operation of this plant, Gevo intends to demonstrate its fully integrated biorefinery -- going from renewable carbohydrates all the way to fungible hydrocarbon materials used across the refining and petrochemical industries. We expect this plant to showcase the value of our renewable hydrocarbons and drive future customer demand."
"We have a growing list of potential customers and end-users interested in renewable hydrocarbons for a variety of market applications from jet fuel to renewable PET," said Christopher Ryan, Ph.D., president and COO of Gevo. "This plant should allow us to supply early adopters with product so they can test our material, make samples and start their selling cycle. We also expect to gain critical technical and market insights along the way."
South Hampton Resources, Inc. has agreed to provide Gevo with toll-manufacturing services at its Silsbee, TX facility and complete the final design and engineering package for the demonstration plant from preliminary plans supplied by Gevo. Gevo will own all the intellectual property that results from the work including the plans, designs and systems developed for the demonstration plant and future commercial-scale plants.
Gevo is converting existing ethanol plants into biorefineries to make renewable building block products for the chemical and fuel industries. The Company plans to convert renewable raw materials into isobutanol and renewable hydrocarbons that can be directly integrated on a "drop in" basis into existing chemical and fuel products to deliver environmental and economic benefits. Gevo is committed to a sustainable biobased economy that meets society's needs for plentiful food and clean air and water. For more information, visit http://www.gevo.com
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 include statements that are not purely statements of historical fact, and can sometimes be identified by our use of terms such as "intend," "expect," "plan," "estimate," "future," "strive" and similar words. 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 the company undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although the company 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, 2010, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo.
SOURCE: Gevo, Inc.