ENGLEWOOD, Colo., June 21, 2018 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) announced today that it has entered
into a long-term agreement to supply its renewable alcohol-to-jet fuel (ATJ) to Avfuel Corporation, effective July 1, 2018 (the
“Supply Agreement”). Avfuel is a leading global supplier of aviation fuel and services to all industry consumer groups, servicing
more than 3,000 locations worldwide. The Supply Agreement with Avfuel is Gevo’s first long-term commercial supply agreement for its
ATJ.
“We are pleased to have a customer and partner like Avfuel. Avfuel has tremendous reach with more than 650
Avfuel-branded locations and 3,000-plus fueling locations worldwide to a vast scope of customers. We appreciate its vision and
leadership in working with us to bring a better and more sustainable fuel to the market place. Not only can we reduce greenhouse
gas emissions, but we also can produce a higher quality product than petroleum-based jet fuel from a technical standpoint. The
whole supply chain should benefit, as well as the end customer. This contract with Avfuel is an excellent first step and will serve
as a catalyst for Gevo to build up the aggregate demand so we can proceed with the development of a larger scale ATJ facility,”
said Patrick Gruber, Gevo’s chief executive officer.
Craig Sincock, owner, president and CEO of Avfuel said, “As a leader in the global supply of aviation fuel and
services, we have a social responsibility to make sustainable alternative jet fuel a reality in the marketplace. Our agreement with
Gevo is a notable component in our overall strategy to support our industry’s commitment to reduce carbon emissions and enhance
sustainability to mitigate its effect on climate change.”
Sincock remarked that the agreement with Gevo will help the company meet the demand of its customers for a
low-carbon, alternative jet fuel, filling a gap in the industry’s supply chain.
The Supply Agreement contemplates two phases. During the first phase, Gevo will supply Avfuel from its
smaller-scale hydrocarbon processing facility it operates in Silsbee, Texas, in partnership with South Hampton Resources, Inc. (the
“Silsbee Facility”). Currently, the Silsbee Facility has the capacity to produce approximately 70,000 gallons of renewable
hydrocarbon products per year (50% of which is ATJ and 50% of which is isooctane).
During the first phase, Gevo expects to construct a larger-scale hydrocarbon facility at its existing ethanol
and isobutanol production facility located in Luverne, Minnesota, (the “Luverne Facility”) to produce larger quantities of ATJ (the
“Luverne Hydrocarbon Facility”), subject to Gevo's receipt of sufficient financing. Upon completion of the Luverne Hydrocarbon
Facility, the second phase of the Supply Agreement would commence, which would have a term of five years, subject to extension upon
the mutual agreement of the parties. During the second phase, Gevo would supply Avfuel with larger volumes of ATJ, ramping up to
1,000,000 gallons of unblended ATJ per year, which, when blended with conventional jet fuel, would produce many millions of gallons
of finished ASTM D1655 jet-fuel product for distribution per year.
With further regard to the environment, for every one million gallons of ATJ produced, approximately 20 million
pounds of animal feed and protein would also be produced and sold into the food chain. To produce ATJ, Gevo fractionates grain to
produce protein and animal feed while using the residual carbohydrate portion of the grain for fermentation to produce the
intermediate chemical: isobutanol. The isobutanol is then chemically transformed using a hydrocarbon processing facility into ATJ
meeting ASTM D7566 (standard specification for aviation turbine fuel containing synthesized hydrocarbons). The ATJ made by this
process has very low sulfur, low particulates, and higher energy density than petro-based jet fuel.
About Gevo
Gevo is a leading renewable technology, chemical products, and next generation biofuels company. Gevo has
developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical
engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo can
produce isobutanol, ethanol and high-value animal feed at its production facility in Luverne, MN. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, TX, in
collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like
polyester. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and
water. Learn more at our website: www.gevo.com.
About Avfuel Corporation
Avfuel provides fuel and services to the global aviation industry and is the leading independent supplier in the
United States. Established as a supply and logistics company 45 years ago, Avfuel is core competent in every aspect that surrounds
the delivery of fuel—from refinery to wingtip. Avfuel combines global access with personalized service throughout a fueling network
of more than 3,000 locations worldwide and 650+ Avfuel-branded FBOs. Our 100% dedication to aviation demonstrates our passion and
commitment to a global community that prospers on the movement of goods and services around the world.
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 Gevo’s ability to perform its obligations under the Supply Agreement, whether the
transactions contemplated by the Supply Agreement will be completed, Gevo’s plans and ability to construct the Luverne Hydrocarbon
Facility, the demand for Gevo’s ATJ and renewable, low carbon jet fuel, 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, 2017, as amended, 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
Shawn M. Severson
Integra Investor Relations
+1 415-226-7747
gevo@integra-ir.com
Avfuel Corporation Contact
Marci Ammerman
Vice President Marketing
734-663-6466
mammerman@avfuel.com
www.avfuel.com
facebook.com/avfuel
Twitter: @Avfuel