Gevo, Inc
Encyclopedia
Gevo, Inc. is a renewable chemicals and advanced biofuels company headquartered in unincorporated Douglas County
, Colorado
in the Denver-Aurora metropolitan area
. The company develops bio-based alternatives to petroleum-based products using a combination of biotechnology and classical chemistry. Gevo converts renewable raw materials into isobutanol
and renewable hydrocarbons that Gevo believes can be directly integrated on a “drop in” basis into existing fuel and chemical products. Gevo’s investors include Burrill & Company, Khosla Ventures
, Lanxess
, Total
, and Virgin Green Fund
, among others.
Isobutanol produced from renewable raw materials may be a competitively priced alternative source of hydrocarbons for the petrochemical and refining industries. Over the last decade, fermentable sugars had lower cost volatility than petroleum, which is important to industrial consumers who are seeking less volatile sources that might be used to hedge equivalent petroleum-derived materials. Isobutanol and its derivatives have potential applications in approximately 40 percent of the global petrochemicals market. Manufacturers can replace petroleum-derived raw materials with isobutanol-derived raw materials without modification to their equipment or production processes. Additionally, the final products produced from isobutanol-based raw materials are chemically equivalent to those produced from petroleum-based raw materials and may help reduce the time to market adoption.
production plants to produce isobutanol. Gevo’s Integrated Fermentation Technology®, or GIFT™, is an integrated technology platform for the efficient production and separation of isobutanol. GIFT consists of two components, proprietary biocatalysts that convert sugars derived from multiple renewable feedstocks into isobutanol through fermentation, and a proprietary separation unit that is designed to continuously separate isobutanol from water during the fermentation process.
Gevo developed its technology platform to be compatible with the existing approximately 20 BGPY (Billion Gallons per Year) of global operating ethanol production capacity, as estimated by the Renewable Fuels Association
. GIFT is designed to allow relatively low capital expenditure retrofits of existing ethanol facilities, enabling a rapid and cost-efficient route to isobutanol production from the fermentation of renewable feedstocks. Gevo is also developing biocatalysts to convert sugars derived from biomass to produce cellulosic isobutanol once the conversion technology is commercially viable. Gevo plans to expand its production capacity beyond its initial commercial facility to produce and sell over 500 million gallons of isobutanol by 2014.
, other polymers and hydrocarbon fuels is known and practiced in the chemicals industry today. Gevo’s commercialization efforts are focused on the following markets:
Douglas County, Colorado
Douglas County is the eighth most populous of the 64 counties of the state of Colorado, in the United States. The county is located midway between Colorado's two largest cities: Denver and Colorado Springs...
, Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
in the Denver-Aurora metropolitan area
Denver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...
. The company develops bio-based alternatives to petroleum-based products using a combination of biotechnology and classical chemistry. Gevo converts renewable raw materials into isobutanol
Isobutanol
Isobutanol is an organic compound with the formula 2CHCH2OH. This colorless, flammable liquid with a characteristic smell is mainly used as a solvent. Its isomers include n-butanol, 2-butanol, and tert-butanol, all of which are more important industrially.-Production:Isobutanol is produced by the...
and renewable hydrocarbons that Gevo believes can be directly integrated on a “drop in” basis into existing fuel and chemical products. Gevo’s investors include Burrill & Company, Khosla Ventures
Khosla Ventures
Khosla Ventures is a venture capital firm focused on early stage companies in the Internet, computing, mobile, silicon technology and clean technology sectors....
, Lanxess
Lanxess
Lanxess AG is a specialty chemicals group based in Germany, with headquarters and major operations in Leverkusen. It was founded in 2004 when Bayer AG spun off its chemicals operations and parts of its polymer activities. As measured by sales, Lanxess is the fourth largest chemicals group in Germany...
, Total
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...
, and Virgin Green Fund
Virgin Green Fund
Virgin Green Fund has been established to invest in companies in the renewable energy and resource efficiency sectors in the US and Europe.- Investment opportunities :...
, among others.
Economics of Isobutanol Production
Isobutanol is a four-carbon alcohol that can be directly used as a specialty chemical or a value-added fuel blendstock. It can also be converted into butenes, using simple dehydration chemistry deployed in the refining and petrochemicals industries today. Butenes are primary hydrocarbon feedstocks that are used in the production of plastics, fibers, rubber, other polymers and hydrocarbon fuels.Isobutanol produced from renewable raw materials may be a competitively priced alternative source of hydrocarbons for the petrochemical and refining industries. Over the last decade, fermentable sugars had lower cost volatility than petroleum, which is important to industrial consumers who are seeking less volatile sources that might be used to hedge equivalent petroleum-derived materials. Isobutanol and its derivatives have potential applications in approximately 40 percent of the global petrochemicals market. Manufacturers can replace petroleum-derived raw materials with isobutanol-derived raw materials without modification to their equipment or production processes. Additionally, the final products produced from isobutanol-based raw materials are chemically equivalent to those produced from petroleum-based raw materials and may help reduce the time to market adoption.
Technology, Engineering and Production
Gevo has developed technology to retrofit existing ethanolEthanol
Ethanol, also called ethyl alcohol, pure alcohol, grain alcohol, or drinking alcohol, is a volatile, flammable, colorless liquid. It is a psychoactive drug and one of the oldest recreational drugs. Best known as the type of alcohol found in alcoholic beverages, it is also used in thermometers, as a...
production plants to produce isobutanol. Gevo’s Integrated Fermentation Technology®, or GIFT™, is an integrated technology platform for the efficient production and separation of isobutanol. GIFT consists of two components, proprietary biocatalysts that convert sugars derived from multiple renewable feedstocks into isobutanol through fermentation, and a proprietary separation unit that is designed to continuously separate isobutanol from water during the fermentation process.
Gevo developed its technology platform to be compatible with the existing approximately 20 BGPY (Billion Gallons per Year) of global operating ethanol production capacity, as estimated by the Renewable Fuels Association
Renewable Fuels Association
The Renewable Fuels Association is an American lobbying organization which promotes policies, regulations, and research and development initiatives that will lead to the increased production and use of ethanol fuel...
. GIFT is designed to allow relatively low capital expenditure retrofits of existing ethanol facilities, enabling a rapid and cost-efficient route to isobutanol production from the fermentation of renewable feedstocks. Gevo is also developing biocatalysts to convert sugars derived from biomass to produce cellulosic isobutanol once the conversion technology is commercially viable. Gevo plans to expand its production capacity beyond its initial commercial facility to produce and sell over 500 million gallons of isobutanol by 2014.
- Demonstration facility in St. Joseph: Gevo’s production process was demonstrated in September 2009 on a commercially relevant scale with the retrofit of ICM’s 1 MGPY(Million Gallons per Year) ethanol facility in St. Joseph, Missouri. This demonstration project illustrates that Gevo’s model for repurposing ethanol plants for scalable production of isobutanol can be accomplished rapidly and with a low up-front capital investment.
- First commercial production facility: In September 2010, Gevo acquired ownership of a 22 MGPY ethanol production facility in Luverne, MinnesotaLuverne, MinnesotaAs of the census of 2000, there were 4,617 people, 1,968 households, and 1,247 families residing in the city. The population density was 1,356.1 people per square mile . There were 2,161 housing units at an average density of 634.7 per square mile...
. Gevo anticipates beginning its retrofit of the Luverne facility in the fourth quarter of 2010. Commercial production of isobutanol is expected to begin at the Luverne facility in the first half of 2012.
Target Markets
Most of the technology necessary to convert isobutanol into plastics, fibers, rubberRubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
, other polymers and hydrocarbon fuels is known and practiced in the chemicals industry today. Gevo’s commercialization efforts are focused on the following markets:
- Isobutanol — Without any modification, isobutanolIsobutanolIsobutanol is an organic compound with the formula 2CHCH2OH. This colorless, flammable liquid with a characteristic smell is mainly used as a solvent. Its isomers include n-butanol, 2-butanol, and tert-butanol, all of which are more important industrially.-Production:Isobutanol is produced by the...
has applications as a specialty chemical and a fuel blendstock. In the fuel blendstock market, isobutanol can be used to replace high-value blendstocks such as alkylate and can be blended in conjunction with, or as a substitute for, ethanol and other widely used fuel oxygenates. In November 2010, Gevo became the first company to receive EPA (Environmental Protection Agency) certification for isobutanol as a fuel blendstock after meeting the EPA’s standards under the Clean Air Act. The global gasoline oxygenate market is approximately 40 BGPY, based upon data from the International Energy AgencyInternational Energy AgencyThe International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...
(IEA). While isobutanol can be used as a replacement for ethanol, its product properties are significantly differentiated from ethanol. As a gasoline blendstock, isobutanol’s low Reid Vapor Pressure (RVP), high energy content and low water solubility compared to ethanol make it a valuable product that can be sold directly to refiners and is compatible with existing engine and industry infrastructure, including pipeline assets. Isobutanol can also be sold for immediate use as a specialty solvent. This global market for butanol represents approximately 1.1 BGPY, based upon volume data from SRI. - Plastics, Fibers, Rubber and other Polymers — Isobutanol can be converted into a wide variety of hydrocarbons that form the basis for the production of many products, including rubber, lubricants, additives, methyl methacrylateMethyl methacrylateMethyl methacrylate is an organic compound with the formula CH2=CCOOCH3. This colourless liquid, the methyl ester of methacrylic acid is a monomer produced on a large scale for the production of poly .-Production:...
, polypropylenes, polyesters, and polystyrenePolystyrenePolystyrene ) also known as Thermocole, abbreviated following ISO Standard PS, is an aromatic polymer made from the monomer styrene, a liquid hydrocarbon that is manufactured from petroleum by the chemical industry...
, representing an aggregate potential market for isobutanol of approximately 67 BGPY, based upon volume data from SRI, CMAI and Nexant. - HydrocarbonHydrocarbonIn organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....
Fuels — Alternatively, the hydrocarbons that can be produced from isobutanol can be used to manufacture jet and diesel fuel, as well as other hydrocarbon fuels. The hydrocarbon fuels that can be produced from isobutanol collectively represent a potential market for isobutanol of over 900 BGPY, based upon volume data from IEA.