Gevo inks renewable Isooctane supply deal with Haltermann Carless 

May 7, 2017 |

In Colorado, Gevo has entered into a Supply Agreement with HCS to supply renewable isooctane under a five-year offtake agreement. HCS is a leading global supplier of high-quality hydrocarbon specialty products. Haltermann Carless, a subsidiary of HCS and one of the oldest companies in the world of chemistry, is expected to be the direct customer with Gevo under the Supply Agreement.

In the first phase, HCS will purchase isooctane produced at Gevo’s demonstration hydrocarbon plant located in Silsbee, Texas.  This first phase commences in May 2017 and would continue until completion of Gevo’s first large-scale commercial hydrocarbon plant. Gevo estimates that this could generate up to $2-3 million of gross revenue per year.

In the second phase, HCS has agreed to purchase 300,000 gallons of isooctane per year with an option to purchase an additional 100,000 gallons of isooctane per year, under a five-year offtake agreement. The Supply Agreement contains a selling price that is expected to allow for an appropriate level of return on the capital required to build out Gevo’s existing production facility in Luverne, Minnesota.

More on the story.

Category: Fuels

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