UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 29, 2011
Gevo, Inc.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 001-35073 | 87-0747704 | ||
| (State or Other Jurisdiction of Incorporation) |
Commission File Number |
(I.R.S. Employer Identification Number) |
345 Inverness Drive South, Building C, Suite 310, Englewood, CO 80112
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (303) 858-8358
N/A
(Former Name, or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01 Regulation FD Disclosure.
Gevo, Inc. (the “Company”) is furnishing a copy of corporate presentation materials which will be used by management of the Company in investor presentations beginning on June 29, 2011. The presentation materials are attached hereto as Exhibit 99.1 and are incorporated herein solely for purposes of this Item 7.01 disclosure.
The information contained in the attached presentation materials is summary information that is intended to be considered in the context of the Company’s SEC filings and other public announcements. The Company undertakes no duty or obligation to publicly update or revise this information, although it may do so from time to time.
In accordance with General Instruction B.2 of Form 8–K, the information in this Current Report on Form 8–K, Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth in such a filing. This Current Report on Form 8–K will not be deemed an admission as to the materiality of any information in this Current Report on Form 8–K that is required to be disclosed solely by Regulation FD.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 99.1 |
Presentation Materials of Gevo, Inc., dated June 29, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Gevo, Inc. | ||
| By: | /s/ Brett Lund | |
| Brett Lund | ||
| Executive Vice President, General Counsel & | ||
| Secretary | ||
Date: June 29, 2011
Exhibit 99.1
Gateway to Renewable Chemicals and Hydrocarbon Fuels
Corporate Update
June 29-30, 2011
Safe Harbor Statement
Certain statements in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements relate to a variety of matters, including but not limited to: our ability to acquire access to and retrofit existing ethanol production facilities; the expected cost-competitiveness and relative performance attributes of isobutanol and the products derived from it; the expected applications of isobutanol and addressable markets; the availability of suitable and cost competitive feedstocks; our ability to utilize agricultural residues and other cellulosic feedstocks in the future; our ability to produce and sell co-products of isobutanol production as a fertilizer or animal feedstock; the future price and volatility of corn and other renewable feedstocks; the future price and volatility of petroleum; the expected economics of the joint venture with Redfield Energy, LLC; and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of our management and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and we assume no obligation to update or revise these statements, whether as a result of new information, future events or otherwise.
Although we believe that the expectations reflected in our forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause our actual results to differ from what may be expressed or implied in our forward-looking statements. For a discussion of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the Company in general, see the risk disclosures in the Annual Report on Form 10-K of the Company for the year ended December 31, 2010, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the Securities and Exchange Commission by the Company.
This presentation is based on information that is generally available to the public and does not contain any material, non-public information. This presentation has been prepared solely for informational purposes and is neither an offer to purchase nor a solicitation of an offer to sell securities.
2 © 2011 Gevo, Inc.
Existing Markets and Platform Molecule
Feedstock Flexibility
Today
Corn
Sugar Cane
Future
Agricultural Residue
Wood
Retrofit
Proprietary Platform: Yeast
Proprietary Separation Unit
Isobutanol
Chemicals (1 Bgpy)
Chemical-grade isobutanol (e.g. solvents, paints)
Fuels (40 Bgpy)
High octane, low RVP blendstock
41 Bgpy demand
“Off the shelf” petrochemical processes
Isobutanol Derivatives
Chemicals (67 Bgpy)
Rubber
PMMA
Propylene
Polyesters (p-xylene)
Fuels (927 Bgpy)
Gasoline (specialty blendstocks)
Jet fuel
Diesel
~1 trillion gallons additional demand
Source: ICIS, CMAI, EIA, USDA, Neste Oil, OPIS, The Ethanol Monitor
3 © 2011 Gevo, Inc.
Addressable Markets With Drop-In Solutions
SOLVENTS
>$5 BILLION MARKET
Regulatory: No approval required
Market Use: Immediate
RUBBER AND LUBRICANTS
>$5 BILLION MARKET
Regulatory: No approval required
Market Use: 1 step required (dehydration)
BIOJET
>$160 BILLION MARKET
Regulatory: ASTM Certification underway
Planned completion 2013
Market Use: Integrated facility required (standard)
GASOLINE BLENDSTOCKS
>$125 BILLION TOTAL
MARKET
>$5 BILLION INITIAL
MARKET (specialty)
Regulatory: EPA Approved for isobutanol blend with gasoline up to 12.5% Market Use: Immediate
Source: ICIS, CMAI, EIA, USDA, Neste Oil, OPIS, The Ethanol Monitor
4 © 2011 Gevo, Inc.
Meeting Market Demand: Four Carbon Molecules
Fundamental market shifts provide void for Gevo to fill
Nat. gas expected to continue to be cheap
Market participants agree and are investing billions
Switch to NGL crackers expected to result in C4 shortage
($/MMBTU)
$25 $20 $15 $10 $5 $0
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035
2015: $11/MMBTU difference
Natural Gas
Oil
Source: EIA Annual Energy Outlook 2011
| 5 |
|
© 2011 Gevo, Inc. |
Meeting Market Demand: Four Carbon Molecules
Fundamental market shifts provide void for Gevo to fill
Nat. gas expected to continue to be cheap
Market participants agree and are investing billions
Switch to NGL crackers expected to result in C4 shortage
Shell - June 2011
Announced world scale ethylene cracker for Marcellus Shale region (>$1 billion investment and 3-5 year construction project)
DOW Chem. - April 2011
Announced world scale ethylene cracker for startup in 2017 and will use feedstock from Marcellus and Eagle Ford shale regions
William Cos. - March 2011
“Shale gas is positioned to create a renaissance in the industry … We’re talking about 100 years of supply”
– CEO at CMAI Houston conference
| 6 |
|
© 2011 Gevo, Inc. |
Meeting Market Demand: Four Carbon Molecules
Fundamental market shifts provide void for Gevo to fill
Nat. gas expected to continue to be cheap
Market participants agree and are investing billions
Switch to NGL crackers expected to result in C4 shortage
Historical
Expected
~81% shrink in C4s produced
Naphtha & Gas Oil
NGLs
Ethylene Propylene C4s Pyrolysis Gasoline Other
Source: Adapted from CMAI
| 7 |
|
© 2011 Gevo, Inc. |
Isobutanol: A Gateway Molecule
| 7 |
|
building blocks from which hydrocarbon fuels / chemicals are made |
Ethylene (2 carbons)
Propylene (3 carbons)
Butylene (4 carbons)
Butadiene (4 carbons)
Benzene (6 carbons)
Toulene (7 carbons)
Xylene (8 carbons)
We believe isobutanol can be converted into 5 of the 7 building blocks of the petrochemical industry using standard industry practices
Green building blocks are expected to enable 100% of all hydrocarbons and 40% of all petrochemicals
Ethylene
Propylene
Butylene
Butadiene
Benzene
Toulene
Xylene
Plastics
Plastics
Solvents
Rubber
Pharmaceuticals
Rubber
Plastics Foams / Fibers
Solvents
Fuels
Fuels
Plastics / Fibers
| 8 |
|
© 2011 Gevo, Inc. |
Petrochemical Industry Map
Hydrocarbon Fuels
Steam Cracking
Olefins
Ethylene Propylene Butylenes Butadiene
Pyrolysis Gasoline
Naphtha
Aromatics
Benzene
Toluene
Xylenes
Diesel Gasoline Jet Fuel
Chemicals and Materials
EDC Ethylene Oxide alpha-Olefin Ethanol Isobutene
MTBE Vinyl Chloride Ethylene Glycol
Polyethylene
Poly(vinyl cloride)
Polyester
Propylene Oxide
Acrylonitrile
Polyols
Polyisobutylene
Polypropylene
Polyacrylonitrile
Polybutadiene
Butadiene-Styrene Polystyrene
ABS Methyl Methacrylate SB Latex Nylon 66 Nylon 6 Polyurethane Plasticizers Unsaturated Polyesters
Polyesters (PET)
Cumene
Ethyl Benzene
Phenol Acetone
Styrene
Cyclohexane Toluene Diamine ortho-Xylene meta-Xylene para-Xylene
Adipic Acid Caprolactam Toluene Diisocyanate Phthalic Anhydride Isophthalic Acid
Terephthalic Acid
Source: Adapted from Nexant
9 © 2011 Gevo, Inc.
Isobutanol: A Gateway to Chemicals and Fuels
CO2+
Hydrocarbon Fuels
Diesel Gasoline Jet Fuel
Chemicals and Materials
EDC Ethylene Oxide alpha-Olefin Ethanol Isobutene
Propylene Oxide
Acrylonitrile
Cumene
Ethyl Benzene
Cyclohexane Toluene Diamine ortho-Xylene meta-Xylene para-Xylene
MTBE Vinyl Chloride Ethylene Glycol
Polyols
Phenol Acetone
Styrene
Adipic Acid Caprolactam Toluene Diisocyanate Phthalic Anhydride Isophthalic Acid
Terephthalic Acid
Polyethylene
Poly(vinyl cloride)
Polyester
Polyisobutylene
Polypropylene
Polyacrylonitrile
Polybutadiene
Butadiene-Styrene Polystyrene
ABS Methyl Methacrylate SB Latex Nylon 66 Nylon 6 Polyurethane Plasticizers Unsaturated Polyesters
Polyesters (PET)
Steam Cracking Olefins
Ethylene
Propylene
Butylenes
Butadiene
Pyrolysis Gasoline
Naphtha Aromatics
Benzene
Toluene
Xylenes
Source: Adapted from Nexant
Note: Chemicals shaded green denote those which can be made from isobutanol-derived building blocks.
10 © 2011 Gevo, Inc.
Historically Cost Competitive With Lower Volatility
Expected to enable “greening” of industry and entice customers
Difference in Estimated Cost & Historical Pricing: Petro-Isobutanol vs Bio-Isobutanol
(comparison by Month)
US$ / Gallon Cash
9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00
2006 2010
USGC IBA Sale Price
Petro-IBA cost
Bio-IBA cost
Avg. diff. = $3.83/gal
Butene Cost Volatility
(Month to Month Variability)
US$ / Gallons Cash US$ / Gallon
1.50
1.00
0.50
0.00 -0.50 -1.00
-1.50
1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50
2006 2010
Bio-Butene
St. Dev.: 8.7%
Petro-Butene
2006 2010
St. Dev.: 18.0%
Source: EIA, Nexant, CMAI, ICIS, Gevo; Bio-isobutanol based on CBOT corn
11 © 2011 Gevo, Inc.
Net Carbohydrate Costs
Gevo plans to produce renewable chemicals, fuels and animal feed
Maximizing value of animal feed decreases net cost to produce IBA
1 bushel
Corn
2.1 gallons
Isobutanol
18 lbs
Animal Feed
Example Calculation
$/bu corn $6.50
Less: Animal feed co-product netback ($/bu corn) (1.67) 18 lbs/bu @ 80% price/bu corn
Net starch cost ($/bu corn less co-product netback) $4.83
Gal/bu yield 2.1 Conservative IBA gal/bu yield
Feedstock contribution cost / gal $2.30
$/MT Fermentable Sugar $293 33 lbs starch/bu and 1.1 lbs dextrose / lb starch
Sensitivity Table
Corn Cost ($/bu) $4.00 $5.00 $6.00 $7.00 Co-product netback ($/bu) $1.03 $1.29 $1.54 $1.80 Feedstock Contr. ($/gal) $1.41 $1.77 $2.12 $2.48 $/MT Fermentable Sugar $180 $226 $271 $316
Note: Gevo expected gal/bu isobutanol yield. Lbs/bu animal feed adapted from Iowa Corn Growers Association estimate for ethanol.
12 © 2011 Gevo, Inc.
Protected on the Downside, Significant Upside
Market opportunity driven by spread between starch and oil
LOWER OIL CURRENT HIGHER OIL
Oil (MT)
$445 $668 $1,002
($60/bbl) ($90/bbl) ($135/bbl)
Starches (MT)
$246 $291 $335
($5.50/bu corn) ($6.50/bu corn) ($7.50/bu corn)
MT Ratio (oil/starch)
1.8 2.3 3.0
Addressable Markets
$10 B >$40 B >$3,000 B
Size of Gevo market opportunity depends on spread of oil to starch
Note: The lowest the ratio has been in last 10 years is 1.5 (Dec 2001 – Jan 2002)
Calculation shortcuts: $/MT oil = 7.3 X $/bbl oil $/MT starch = 44.7 X $/bu corn
13 © 2011 Gevo, Inc.
Low Carbon Alternative
Expected to enable advanced biofuel from feedstocks already in use
Projected Lifecycle Greenhouse Emissions Using EPA Methods
(Includes Indirect Land Use)
50% Reduction
Gasoline Ethanol Isobutanol
Isobutanol w/Green Energy (Biomass CHP / anaerobic digestion)
Isobutanol w/Cellulosic Feedstock
Source: EPA, WSP Environment and Energy
Expected to result in $0.90+/gal of incremental value
Note: Not included in Gevo base case.
Incremental value based on advanced vs. renewable RIN value multiplied by 1.3 (isobutanol RINs / gallon produced) as of June 22, 2011.
14 © 2011 Gevo, Inc.
Actively Managing the Risks
RISK FACTOR
New Molecule
Economic Performance
Capital Intensity
Scale Up / Robust Process
Government Subsidies
Limited Feedstock Options
Single Market Dependence
RISK MITIGATION
Use an already known, true “drop-in”
Replacing lost molecules
Anticipated Highest Yield Processes Expected to Result in Lowest Cost
Retrofit Existing Assets
Use Industrially Proven Yeast / Processes
No Mandates or Subsidies Expected to be Needed Expected to Enable any Fermentable Feedstock
Platform Molecule with Multiple Markets
15 © 2011 Gevo, Inc.
Proven Leaders in Commercializing Industrial Biotechnology
Patrick Gruber, Ph.D.
CEO
David Glassner, Ph.D.
EVP-Technology
Mike Slaney
EVP-Upstream Development
Christopher Ryan, Ph.D.
EVP-Business Development
Mark Smith
CFO
David Black
EVP-Upstream Development
Gevo staff has over 400 years of directly relevant industrial experience in the development and commercialization of industrial biotechnology
16 © 2011 Gevo, Inc.
Economics Remain Attractive as Volume Ramps
Isobutanol Target Production Volume
(MGPY)
Target Plants in at Year End
Isobutanol Target Selling Price ($)
Target Gross Margin (%)
Target EBITDA Margin (%)
2012 2013 2014 2015
10-20 80-100 ~350 ~200
2 4 6 9
3.20-3.50 3.05-3.40 3.05-3.40 2.95-3.40
24-26 24-26 24-26 24-26
13-15 15-18
na 8-10 13-15 15-18
The projected growth of our production volumes, selling price and gross margin percentages depicted above reflect our targets based on the estimates of our management and there can be no assurance that we will be able to reach our targeted levels of production, selling price and gross margin percentages in the time period depicted above, or at all.
17 © 2011 Gevo, Inc.
Technology
Commercial Targets Achieved
Enables Large Scale, Cost Effective Fermentation
92% 94% 105 g/l107 g/l 2 g/l/h 2 g/l/h
Target
Achieved
Target
Achieved
Target
Achieved
Yield Concentration Rate
Gevo’s Proprietary Yeast
Isobutanol
Sugars
19 © 2011 Gevo, Inc.
Proven Technology Ready for Commercialization
Complete Complete In Progress
10,000X 18X
100 GPY1 MGPY 18 MGPY
Mini Plant/Denver, CO
Demo Plant/St. Joseph, MO Started-up in Sept 2009
Commercial Plant #1/Luverne, MNPlanned to start-up 1st half of 2012
20 © 2011 Gevo, Inc.
Low Cost Retrofit Expected
Plant Projected Capacity Retrofit Cost
22 MGPY ~$0.77/gal
50 MGPY ~$0.48/gal
100 MGPY ~$0.40/gal
Isobutanol
Water
Gevo’s Integrated Fermentation Technology (GIFT®)
BEFORE Luverne, MN
AFTER
21 © 2011 Gevo, Inc.
Finished Hydrocarbon:
Expected Highest Yield/Lowest Capital Cost
YIELD
Hydrocarbon Gallons/MT Sugar
40 66 85 88 108 101
Algae Oil Catalytic Cracking Farnesene Ferment. Diesel Max Theoretical Shown
TOTAL CAPITAL COST
Finished Hydrocarbon $/gal
$9.15
Downstream capital Plant capital
$5.60 $5.80
$3.75
$1.30
Farnesene Algae Oil Ferment. Diesel Catalytic Cracking
(1) Process yields were assumed at 95% for anaerobic processes and 90% for aerobic processes. Adapted from: Dumesic, JA “Catalytic Strategies for Changing the Energy Content and Achieving C-C Coupling in Biomass-Derived Oxygenated Hydrocarbons” Chemsuschem 2008, 1, 725-733 Keasling, JD, “Biosynthesis of Plant Isoprenoids: Perspectives for Microbial Engineering,” Annual Review of Plant Biology 2009, 60, 335-355. Rude, MA “New Microbial Fuels: a Biotech Perspective” Current Opinion in Microbiology 2009, 12, 274-281.
Capital costs based on public data, Wall Street estimates and Gevo estimates.
22 © 2011 Gevo, Inc.
Business Plan Margins Backed By Strong IP Portfolio
TECHNOLOGY
PATENTS AND APPLICATIONS
Synthetic Biology and Yeast 204
GIFT™ and Process 28
Products and Chemistry 40
Note: As of May 12, 2011
23 © 2011 Gevo, Inc.
Market Detail
Solvents Market: Same Molecule Lower Price
Addressable Market
Molecule
Market Drivers
Market Price Point
>$5 Billion (butanols)
Isobutanol
Lower cost and volatility Lower carbon footprint
$4.75 - $5.25/gallon
Regulatory Approvals
None Needed
Distributor
End users
Existing butanol users, Sasol customers
Specification set
Qualifying Gevo isobutanol
Source: ICIS. As of March 2011.
25 © 2011 Gevo, Inc.
Rubber/Lubricant Market: Diversification of Supply
Addressable Market >$5 Billion
Molecule Isobutylene
Reduce price volatility
Market Drivers
Increase supply certainty
Market Price Point $4.00 - $5.30/gallon isobutylene
Regulatory Approvals
None Needed
Isobutanol Conversion
End users
Various LXS Customers
Proven isobutanol to butene, rubber
Developing commercial engineering data
Source: CMAI, EIA. As of March 2011
26 © 2011 Gevo, Inc.
Jet Market: Drop-in Fuel, End-User Pull
Addressable Market >$160 Billion
Molecule Kerosene
Intense international pressure on GHG’s
Market Drivers
Economic alternative to expensive oil
Market Price Point >$5.00/gal (for Bio-Jet)
Certification
Jet Process Engineering
Isobutanol Conversion
A Top 5 US Refiner
Jet End User
In progress
USAF Tier 2 complete
Piloting
Engineering
Planning for manufacturing
Market Pull
Source: USDA, Neste Oil. As of March 2011.
27 © 2011 Gevo, Inc.
Specialty Gasoline Blendstocks
Addressable Market >$5 Billion
Molecule Isobutanol
Biofuel Mandates, Low Vapor Pressure
Market Drivers
Drop-in Fuel, Potential for Advanced Biofuel
Market Price Point $3.15 - $3.45/gal
Regulatory Approvals
EPA approved for gasoline
Fuel Manufacturers
Gasoline blenders
Refinery specific blend studies ongoing
Source: OPIS, The Ethanol Monitor. As of March 2011.
28 © 2011 Gevo, Inc.
.
Appendix A:
Redfield Energy Joint Venture
gevo
Redfield Energy Plant Overview
Capacity 50 MGPY ETOH / 38 MGPY IBA
Technology ICM built 2007
Estimated cash cost to produce $2.66/gal isobutanol (excl. freight & $6.50/bu CBOT) (ASP estimated at ~$3.50/gal)
Corn basis $0.50/bu under CBOT (last 24 months)
Rail Burlington Northern Santa Fe
Debt, net (as of 5/31/2011) $10.3 mm ($0.21/gal ethanol)
Redfield, SD
Bushels
Not Estimated
<1,000,000
1,000,000 – 4,999,999
5,000,000 – 9,999,999
10,000,000 – 14,999,999
15,000,000 – 19,999,999
20,000,000 +
-.58 or lower
-.57 to -.53
-.52 to -.48
-.47 to -.43
-.42 to -.38
-.37 to -.33
-.32 to -.28
-.27 to -.23
-.22 to -.18
-.17 to -.13
-.12 to -.08
-.07 to -.03
-.02 to .03
.04 to .08
.09 to .13
.14 to .17
.18 or higher
Corn Basis
2010 Corn Production Acreage by County Source: USDA
Corn Basis by County (June 14, 2011) Source: Telvent DTN
30 © 2011 Gevo, Inc.
Exceeds Target Criteria
CRITERIA REDFIELD
Technology Leader ICM technology
New, high efficiency plant
Members required to deliver 55% of plant Feedstock requirements, Coop relationship provides rest
Great corn basis
Low-Cost Producer Cost to produce $0.10-$0.15/gal IBA better than Gevo IPO projections
Averaged $0.26/gal ethanol EBITDA
Industry Leader last 24 mos(1)
Low leverage
(1) As of May 2011.
31 © 2011 Gevo, Inc.
Transaction Highlights
Expect isobutanol production to begin Q4 2012
JOINT VENTURE
REDFIELD ENERGY LLC.
100% of retrofit capital
No economic interest until isobutanol production begins
EXISTING MEMBERS
REDFIELD ENERGY LLC.
Contribute facility
100% economic interest until isobutanol production begins
32 © 2011 Gevo, Inc.
Transaction Highlights
Strong first JV deal economics
Gevo expects to improve terms for future transactions
JOINT VENTURE
REDFIELD ENERGY LLC.
gevo
Isobutanol cash flow split expected to be >50% through combination of equity interest and technology / marketing fees
Implied $/gal “buy-in” valuation significantly better than IPO projections
2.5 year payback on retrofit
EXISTING MEMBERS
REDFIELD ENERGY LLC.
Expect increase in margin vs. ethanol
Note: Gevo current forward projections. Based on the estimates of our management and there can be no assurance that the projections will be achieved.
33 © 2011 Gevo, Inc.
Appendix B: Additional Slides
gevo
Key Milestones
Scaled up GIFT™ in Demo Plant
Proved Yeast Commercial Performance
Non-binding Offtake LOIs through 2015 production
Purchased 1st Commercial Plant
1st Cellulosic Hydrocarbons Produced
2011
1st Half
Begin retrofit of Luverne
Complete Plant 2 joint venture agreement
2nd Half
Announce customer agreements
Engineering for plant 2 projected to begin
2012
1st Half
Commercial sales from Luverne projected to begin
2nd Half
Commercial sales from plant 2 projected to begin
By end of year estimated to have positive monthly EBITDA
35 © 2011 Gevo, Inc.
Isobutanol Solves Biofuel Corrosion Issue
2.00 mm
2.00 mm
Stress Corrosion Cracking (SCC) with E10
No Stress Corrosion Cracking (SCC) (12.5% Isobutanol)
Gevo has completed preliminary testing with DNV (Det Norske Veritas) on SCC and elastomeric compatibility
36 © 2011 Gevo, Inc.
Isobutanol Compatible with Infrastructure
When contacted with water, ethanol in E10 migrates into water, changing the performance and quality of the gasoline.
Isobutanol acts like a hydrocarbon; it stays in the gasoline even when contacted with water
Gasoline with 10% Water
Isobutanol blended Gasoline with 10% Water
Ethanol blended Gasoline with 10% Water
37 © 2011 Gevo, Inc.
Future Feedstocks and Cellulosic Isobutanol
Agricultural Residue
Cellulosic Sugar Production
Cellulosic Isobutanol Yeast
Wood
Gevo has an LOI to license the technology
JDA for cellulosic yeast
Gevo has an exclusive license to Cargill’s cellulosic yeast portfolio for mixed sugar conversion into butanols
Isobutanol
The ICM Demo Plant is Co-located with Gevo Demo Plant
Cellulosic sugars already tested at lab scale Scheduled for testing in Gevo Demo Plant 1H12
38 © 2011 Gevo, Inc.
Sugar Cost Comparison
Cents per lb
40 35 30 25 20 15 10 5 0
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Net Starch Cost (Ct/lb) Dextrose Price (Ct/lb) World Sugar (Ct/lb) Sugar Cane (Ct/lb)
39 © 2011 Gevo, Inc.