Gevo Inc., has entered into a licensing and a joint development agreement with Porta Hnos S.A., to build several isobutanol plants in Argentina.
US-based advanced renewable fuel and biochemical platform technology company, Gevo Inc., has announced it has entered into a licensing and a joint development agreement with the Argentinian alcohol producer and ethanol plant builder, Porta Hnos S.A., to build several isobutanol plants in Argentina using corn as a feedstock. According to a statement the first plant, which is to be wholly owned by Porta, will have an annual isobutanol production capacity of up to 5 million gallons (≈ 18.9 million litres) and is expected to begin production in 2017.
Based on projected isobutanol pricing, Gevo estimates that it could generate approximately US$1 million in annual revenues once the plant is operational, through royalties, sales and marketing fees, and other revenue streams such as yeast sales. The agreements also contemplate Porta constructing at least three additional isobutanol plants for certain existing ethanol plant customers. For these projects, Gevo would be the direct licensor of its technology and the marketer for any isobutanol produced, and would expect to receive all royalties and sales and marketing fees generated from these projects.
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