Gevo

October 3, 2017

Press Release

ENGLEWOOD, Colo., Oct. 03, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO), announced today that it expects to supply its renewable alcohol-to-jet fuel (ATJ) to the Virgin Australia Group, a leading Australian airline group.  The Virgin Australia Group will be responsible for coordinating the purchase, supply and blending of the ATJ into the fuel supply system at Brisbane Airport in Queensland, Australia. Gevo’s ATJ is expected to be blended with traditional jet fuel and supplied on flights departing Brisbane Airport, including Virgin Australia flights.  It is currently contemplated that Gevo will ship the first gallons of ATJ to the Virgin Australia Group in October 2017.

Gevo will supply the ATJ from its hydrocarbon plant based in Silsbee, Texas. The ATJ is derived from isobutanol produced at its commercial isobutanol plant located in Luverne, Minnesota (the “Luverne Facility”).

Gevo is looking to expand its isobutanol production capabilities at the Luverne Facility to enable larger production volumes of its ATJ in the future. Gevo has a goal in 2017 of obtaining binding supply contracts for a combination of isobutanol and hydrocarbon products (ATJ and isooctane) equal to at least 50% of the capacity of the anticipated expanded Luverne Facility. These supply contracts are expected to form the basis on which Gevo would set the specific configuration of the Luverne Facility in terms of end product mix between isobutanol, ATJ and isooctane.

The Queensland government is supporting the arrangement as a first step in the development of a renewable jet fuel production industry in the state. Queensland is looking to leverage carbohydrate-based feedstocks, abundant to its local agricultural sector, to support the build-out of renewable jet fuel production plants in the future. Gevo is well positioned to play a role in this growth, as the company believes its ATJ is cost advantaged in comparison to other renewable jet alternatives derived from carbohydrate-based feedstocks.

Virgin Australia Group Chief Executive Officer John Borghetti said: “This initiative builds on Virgin Australia’s commitment to be a leader in the commercialization of the sustainable aviation fuel industry in Australia. The project announced today is critical to testing the fuel supply chain infrastructure in Australia to ensure that Virgin Australia and Brisbane Airport are ready for the commercial supply of these exciting fuels.”

“Biojet is fast becoming a staple of the aviation industry, and Brisbane is joining major airports such as Los Angeles and Oslo in embracing a sustainable aviation future. Although the aviation biojet fuel sector is quite new, there has been more than a decade of work behind it and hundreds of thousands of hours of fuel testing to prove the fuels are compatible with fossil based fuels. The first aviation biojet fuels were approved for commercial flights in 2011,” said Queensland Premier Annastacia Palaszczuk.

“We are excited to work in partnership with Virgin Australia, the Queensland government and the Brisbane Airport Corporation to enable flights out of the Brisbane Airport using our ATJ. We believe Queensland offers huge potential for low-cost, biomass-based feedstocks to produce biofuels. When I visited Queensland last year for the Biofutures Industry Forum, I discovered the depth and diversity of its agriculture sector. It really opened our eyes to Queensland's potential for sustainable aviation fuels based on Gevo’s ATJ technology,” added Dr. Patrick Gruber, Gevo’s Chief Executive Officer. 

About Gevo
Gevo is a 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 bio-based 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, Minnesota. 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.

Forward-Looking Statements
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, which include statements relating to the commercial flights to be flown by Virgin Australia, Gevo’s supply of ATJ, Gevo’s plans and goals, including its plans to expand the Luverne Facility, the Queensland government’s plans to develop the renewable jet fuel production industry and the properties of Gevo’s ATJ, 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, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Media Contact
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Read the original press release: Gevo to Supply Jet Fuel to Virgin Australia at Brisbane Airport in Australia Flights Expected to be Flown through the End of 2018

Des Moines Register

October 2, 2017

By Steve Roe

In the decade since the Renewable Fuel Standard (RFS) has been in place, it's been a tremendous success, providing a cleaner, lower-cost choice for consumers and boosting local economies.

However, two recent actions by Environmental Protection Agency administrator Scott Pruitt, and a rumored third proposal, threaten to reverse the progress made and put refiners — not consumers — in the driver's seat.

Administrator Pruitt has indicated he wants to lower the price of Renewable Identification Numbers (RINs), the credits used by refiners in the RFS to add flexibility and lower cost in the program. That's driving EPA's rationale for proposing to lower the 2018 Renewable Volume Obligations (RVO), the first time the agency has lowered the RFS from the previous year's level.

Administrator Pruitt's RIN price destruction campaign is not ending there. Recently, EPA released a Notice of Data Availability, seeking comment on another idea hatched by the oil industry — to lower the 2018 RVO's equivalent to potential biodiesel imports, arguing that the RFS was intended as a domestic fuel program and imported volumes should not be accounted for in determining available supply. 

The problem with this approach is obvious. First, reducing the RVO will not discourage imports from entering the U.S., meaning that available supply will remain the same, but demand will have been butchered, thus lowering prices for refiners. Second, for the U.S. to use a domestic energy program to discourage imports has "World Trade Organization violation" stamped all over it.

Meantime, a rumor circulating now suggests EPA is considering a proposal to allow RINs attached to exported gallons to count toward a refiner's RFS obligation. Currently, those RINs are retired because the statute requires the renewable fuel be used in the United States. It is a domestic energy program, after all.

One might conclude that if EPA were to lower the RFS to account for imports, it would increase the RFS to account for exports. But that's apparently not what EPA is contemplating. The objective here is to add about 1.2 billion RINs (the approximate amount exported today) to an already saturated RIN market, cratering the market and undermining any future investment in biofuels infrastructure or technology.

Administrator Pruitt is missing a critical point — lowering the price of RINs does not translate into consumer savings. RINs are free. When ethanol producers sell a gallon of biofuel to a gasoline marketer, EPA requires them to supply an RIN, as well. The RIN market is created when obligated parties separate them from the gallon of biofuel and sell them to another obligated party that has failed to blend enough ethanol to meet their obligation.

Consumer prices are unaffected.

Whenever President Trump visits Iowa, he extols the virtues of ethanol, American energy and the RFS. It is past time for the President to act on his commitment. He must rein in his EPA administrator, who is implementing the RFS in a way that accommodates oil companies, not renewable fuels and certainly not consumers. He must make the RFS great again.

Read the original article: Trump Must Make the Renewable Fuel Standard Great Again

Renewable Fuels Association

October 3, 2017

By Emily Druckman

The Environmental Protection Agency’s recent “consideration of drastic, unprecedented changes to the Renewable Fuel Standard” would undermine the future growth of the biofuels industry, the Renewable Fuels Association and 10 other biofuel groups wrote today to President Trump. In the letter, the groups urged the president to ensure the administration remains firm in its commitment to the U.S. biofuels industry.

In July, EPA proposed to reduce the total 2018 RFS renewable fuel blending requirements below the levels required in 2017 and late last month, the agency said it was considering further reductions to the 2018 RFS volumes. This is in addition to rumors that EPA is considering a proposal in which U.S. biofuel export volumes would count towards compliance with the RFS.

“If the proposed changes are finalized, EPA’s actions would cause severe harm to our industry, undermining your efforts to drive economic growth and secure America’s status as the global leader in biofuel production. We urge you to act quickly to continue to grow the RFS….” the groups wrote.

In the letter, the groups clarified that they oppose any weakening of the 15 billion gallon conventional biofuel requirement, believe the proposed reduction of the 2018 advanced biofuel requirement is unwarranted and the current treatment of imports and exports under the RFS should be maintained.

“President Trump has been a strong and consistent supporter of fuel ethanol generally and the RFS specifically,” said RFA President and CEO Bob Dinneen. “However, recent proposals by EPA appear to run counter to the president’s renewable energy vision. We want to ensure a strong RFS is maintained, providing consumers with the cleanest, lowest cost and highest octane fuel on the planet.”

To view a copy of the letter, visit: http://www.ethanolrfa.org/wp-content/uploads/2017/10/POTUSletterOct3.pdf.

Read the original release: RFA Signs Letter Urging President Trump to Maintain Strong Commitment to Biofuels