Gevo, Amyris “On The Comeback Trail,” say Cowen & Company analysts

June 3, 2013 |

In California and Colorado, Cowen & Co’s Rob Stone and James Medvedeff write that “AMRS is back in production and could be shipping to multiple partners by year end. GEVO expects to complete a phased re-start at Luverne by year end.”

At Amyris, the analysts noted that the plant at Brotas (formerly Paraiso) “began shipping in Q1; It is expected to reach 80% utilization by year end, and achieve a cost of $4.00/liter. However, yields still need to improve, and full nameplate could take up to three years to realize,” while noting that the Sao Martinho project may resume construction in 2014 but would not be expected to be online until 2016-17. The company si expected to become cash positive next year.

At Gevo, the analysts wrote that after “Mechanical, operational, and biological issues were uncovered during initial runs in 2012,” and that while “steam sterilization apparently resolves the contamination issue while still using existing yeast strain,” a new strain is under development to reduce downtime between runs. The plant is expected to reach 1 million gallons per month by year end.”

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