Gevo, Inc. (NASDAQ:GEVO)
Gevo, Inc. (NASDAQ:GEVO) shares were off slightly (-3.4%) after the company jointly announced that Gevo’s proprietary isobutanol technology will now be available for licensing to processors of sugar cane juice and molasses. This announcement came after Praj Industries Ltd’s development work, adapting Gevo, Inc. (NASDAQ:GEVO)’s technology to sugar cane and molasses feedstocks.
In the first phase of development, Praj Industries worked with Gevo’s technology using sugar cane and molasses feedstocks, undertaking test-runs to create a commercialized process to juice cane and molasses-based ethanol plants, as licensees of Gevo’s isobutanol technology. Licensing is expected to be focused on Praj plants located in India, South America and South-East Asia, with initial capacity targeted to come on-line between 2019 and 2020.
Pramod Chaudhari, Executive Chairman, Praj, stated, “We are excited to offer this technology to our global customers who stand to benefit from an additional revenue stream from isobutanol. Praj has worked on 750 projects for ethanol plants across 75 countries. This isobutanol platform can be offered as ‘bolt-on’ to an existing ethanol plant or as a greenfield plant. This isobutanol technology is the latest addition to Praj’s diverse product portfolio and reinforces our organization’s leadership in the bioenergy space.”
Isobutanol has several direct applications as a gasoline blendstock or as a specialty chemical solvent, or it can be used as Gevo’s alcohol-to-jet fuel (ATJ) and isooctane. In comparison to other renewable jet fuels, Gevo’s ATJ has the potential to offer the optimal solution in terms of operating cost, capital cost, feedstock availability and scalability.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.