Gevo begins retrofit of second isobutanol plant

ERJ staff report (DS)

Englewood, Colorado -- Gevo Inc, through a subsidiary has agreed a joint venture project to convert a second plant to bio-isobutanoil in place of bio-ethanol. The retrofit, at Redfield Energy, LLC of Redfield, SD, is expected to commence by year end 2011, and Gevo expects to begin commercial production of isobutanol at the facility in the fourth quarter of 2012.

The project will retrofit Redfield's existing ethanol plant into an isobutanol plant with an expected production capacity of approximately 38 million gallons per year ("MGPY"). Gevo will provide the technology and capital necessary to retrofit Redfield's existing 50 MGPY ethanol facility and, in exchange, will receive an equity interest in Redfield. This JV validates the attractive economics for both Gevo and Redfield and is consistent with Gevo's business plan.

Gevo broke ground on its first plant retrofit on May 31, 2011 in Luverne, MN, and is expected to bring its isobutanol capacity online in the first half of 2012. The Redfield plant will become Gevo's second production facility and is expected to bring total annual isobutanol capacity for 2012 to approximately 60 MGPY. In May 2011, Gevo announced a letter of intent for its third plant, also a JV, for an additional expected 50 MGPY of isobutanol production. Gevo plans to have approximately 110 MGPY of isobutanol capacity online in 2013.

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Press release from Gevo