Gevo and HCS Group Sign Strategic Agreement to Produce Renewable Low-Carbon Chemicals and Sustainable Aviation Fuel in Europe...
February 24 2021 - 9:00AM
Gevo, Inc. (“Gevo”) (NASDAQ: GEVO), announced today that Gevo
and HCS Group GmbH, a long-time customer of Gevo, have signed a
project memorandum of understanding (“MOU”) to develop and build a
renewable hydrocarbon facility at HCS Group’s site located in
Speyer, Germany, which would utilize Gevo’s low-carbon sustainable
aviation fuel (“SAF”) technology.
The MOU anticipates a first project that is
estimated to produce approximately 60 kMT (22 million gallons per
year) of renewable hydrocarbons, advanced renewable fuels, and
low-carbon SAF at HCS Group’s Speyer site by the end of 2024. The
HCS Group manufacturing center, operated by the Haltermann Carless
brand, is strategically located in the geographical center of
Europe, at the Rhine river and in the vicinity of Frankfurt
airport, offering excellent prerequisites for supplying customers
in Europe with SAF, certified under Europe’s Renewable Energy
Directive (“EU REDII”), and a portfolio of certified renewable
drop-in fuels and specialty chemicals. “This project, developed in
technology partnership with Gevo, is a key element of HCS Group’s
strategy and our aspiration to be a perpetual pioneer in the area
of high-value hydrocarbons, while making a clear contribution to
defossilization and the reduction of greenhouse gas emissions. This
is a unique opportunity to enter the SAF market as the first
commercial producer in Germany, building on our market success with
renewable hydrocarbons”, says Henrik Krüpper, Chief Executive
Officer HCS Group and adds: “We are excited to enable our customers
in the aviation, premium fuels and personal care industries with
bio-based solutions to meet their sustainability goals. Using our
existing infrastructure in Speyer including our new hydrogenation
plant allows us to minimize time-to-market, certification and
approval processes, and costs for this first-of-its-kind project.”
“Gevo and HCS Group have a long-standing and productive
relationship at supplying products to service existing HCS Group
customers with renewable chemicals and high-octane products. Given
that history, and the need for SAF in Europe, it made strategic
sense to develop a joint project in the EU. Gevo’s technology
creates the building blocks for making hydrocarbons. We will need
to establish several suppliers of our renewable building blocks,
throughout EU, made from sugary agricultural residues," said
Dr. Patrick R. Gruber, Gevo's Chief Executive
Officer. Dr. Gruber continued, “Gevo’s technology and business
system for producing renewable hydrocarbons for fuels, chemicals,
and plastics can be a contributor to fight climate change, get
production off a fossil-based system and be at the forefront of
future use of residues and waste feedstocks under EU REDII Annex IX
in Europe.”
About Gevo
Gevo’s mission is to transform renewable energy
and carbon into energy-dense liquid hydrocarbons. These liquid
hydrocarbons can be used for drop-in transportation fuels such as
gasoline, jet fuel, and diesel fuel, that have the potential to
yield net-zero greenhouse gas emissions when measured across the
full lifecycle of the products. Gevo uses low-carbon renewable
resource-based carbohydrates as raw materials from residues and
slurries, and is in an advanced state of developing renewable
electricity and renewable natural gas for use in production
processes, resulting in low-carbon fuels with substantially reduced
carbon intensity (the level of greenhouse gas emissions compared to
standard petroleum fossil-based fuels across their lifecycle) and
GHG scores. Gevo’s products perform as well or better than
traditional fossil-based fuels in infrastructure and engines, but
with substantially reduced greenhouse gas emissions. In addition to
addressing the problems of fuels, Gevo’s technology also enables
certain plastics, such as polyester, to be made with more
sustainable ingredients. Gevo’s ability to penetrate the growing
low-carbon fuels market depends on the price of oil and the value
of abating carbon emissions that would otherwise increase
greenhouse gas emissions. Gevo believes that its proven and
patented technology, which enables the use of a variety of
low-carbon sustainable feedstocks to produce price-competitive low
carbon products such as gasoline components, jet fuel, and diesel
fuel, yields the potential to generate project and corporate
returns that justify the build-out of a multi-billion-dollar
business.
Learn more at Gevo’s website: www.gevo.com
About HCS Group and Haltermann
Carless HCS Group is one of the leading manufacturers
of high-quality hydrocarbons and specialty chemicals. The company
employs about 500 people worldwide. The products are sold worldwide
through the traditional brands Haltermann Carless, ETS
Racing and EOS. HCS Group belongs to H.I.G. Europe, a
subsidiary of the US private equity investment company, H.I.G.
Capital.
The brand Haltermann Carless, one of the oldest
chemical companies in the world, provides innovative
hydrocarbon-based specialty products and solvents and associated
services to best serve its customers. The company operates a
network of state-of-the-art facilities for refining, processing and
blending to produce a wide variety of specialty products in key
business areas: Automotive, Middle Distillates, Oil & Gas,
Pentanes, Performance Fuels, Performance Solvents and
Aromatics.
The chemical company is a pioneer in developing
and marketing a sustainable technologies portfolio based on
renewable feedstock since more than a decade. With access to a
variety of bio-based feedstock sources the company is able to
supply into different high-end applications ranging from high
purity solvents for personal care and cosmetics to specialty
renewable fuels for motorsport races, outdoor power equipment and
aviation contributing to significantly reduced greenhouse gas
emissions.
For more information
visit: http://www.h-c-s-group.com; www.haltermann-carless.com;
Forward-Looking Statements
Certain statements in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements relate to a variety of matters,
including, without limitation, statements related to the MOU to
develop and build a renewable hydrocarbon facility at HCS Group’s
site located in Speyer, Germany, Gevo’s technology, whether the
project contemplated by the MOU will be constructed resulting
in revenue to Gevo, 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 the management of Gevo 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 Gevo undertakes no obligation to update or revise these
statements, whether as a result of new information, future events
or otherwise. Although Gevo believes that the expectations
reflected in these forward-looking statements are reasonable, these
statements involve many risks and uncertainties that may cause
actual results to differ materially from what may be expressed or
implied in these forward-looking statements. For a further
discussion of 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 Gevo in
general, see the risk disclosures in the Annual Report on Form 10-K
of Gevo for the year ended December 31, 2019, and in subsequent
reports on Forms 10-Q and 8-K and other filings made with the U.S.
Securities and Exchange Commission by Gevo.
Investor and Media Contact
IR@gevo.com+1 720-647-9605
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