4 advanced biofuel plants for Argentina as Porta, Gevo announce deal

February 2, 2016 |

BD TS 020316 Gevo smGevo and Porta are targeting the construction of at least four isobutanol plants in Argentina; first plant to be wholly owned by Porta, with a targeted production capacity of up to five million gallons per year

In Colorado, Gevo has entered into a license agreement and a joint development agreement with Argentine ethanol distiller Porta Hnos S.A. to construct multiple isobutanol plants in Argentina using corn as a feedstock. Porta is a well-established, family-owned distilling concern.

The first plant is to be wholly owned by Porta and is expected, according to Gevo CFO Mike Willis, to be co-located at Porta’s facility in Cordoba. Isobutanol production is expected to start in  2017, and the plant is expected to have a production capacity of up to five million gallons of isobutanol per year.

Based on projected isobutanol pricing, Gevo estimates that it could generate approximately $1 million in annual revenues once the plant is operational, through royalties, sales and marketing fees, and other revenue streams such as yeast sales.

The agreements also contemplate Porta constructing at least three additional isobutanol plants for certain of their existing ethanol plant customers. For these projects, Gevo would be the direct licensor of its technology and the marketer for any isobutanol produced, and would expect to receive all royalties and sales and marketing fees generated from these projects. As one of the leading engineering, procurement and construction service providers to the ethanol industry in Argentina, Porta would provide the EPC services for the projects. The production capacity of these additional plants is still to be determined.

Prev1 of 4
Use your ← → (arrow) keys to browse

Print Friendly, PDF & Email

Tags: , ,

Category: Top Stories

Thank you for visting the Digest.