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GEVO: Its ATJ, Commercial Developments and the Jet Fuel Market

GEVO’S ALCOHOL-TO-JET FUEL (ATJ), THE VALUE CHAIN, COMMERCIAL DEVELOPMENTS AND THE JET FUEL MARKET.

The alphaDIRECT Insight

The global market for fuels is one of the single largest total addressable markets (TAMs) for the renewables industry. There are the well-established markets such as ethanol and biodiesel, and more advanced emerging markets such as renewable gasoline and renewable jet fuel. In this ETI AlphaDirect analysis, we are talking with Pat Gruber, Gevo’s CEO, about the company’s strategy and the market opportunity for its ATJ derived from isobutanol produced using Gevo’s proprietary fermentation process.

We believe Gevo has the only commercial technology available today that could eventually meet the scale and cost targets that the airline industry demands. Clearly this is a significant market opportunity and is drawing attention from multiple industry participants, but Gevo has a significant head start in our view, with line-of-site to commercial scale production levels.

Recent milestones, including multiple flights using Gevo’s ASTM specified jet fuel and, most importantly, a heads of agreement with Lufthansa, are positioning the company to achieve commercial scale production in the coming years. With a definitive agreement in hand, this would facilitate Gevo adding additional isobutanol production lines at their Luverne facility while ceasing production of ethanol. They would also possibly build a hydrocarbon refinery on site that would convert the isobutanol into jet fuel and isooctane (renewable gasoline).

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