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Butamax and Gevo end patent disputes

Gevo and Butamax Advanced Biofuels, a joint venture between BP and DuPont, have entered into worldwide patent cross-license and settlement agreements, ending a patent dispute related to technologies for the production of bio-based isobutanol.

This settlement ends all of the lawsuits and creates a new relationship between the companies, aimed at leveraging each other's strengths and accelerating development of competitive supply for bio-based isobutanol.

The cross-license agreement grants both parties patent licenses to all fields for isobutanol. The license will be royalty bearing for Butamax in certain fields and royalty bearing for Gevo in others. There are also a number of fields that are royalty-free for both companies. Both parties can sell up to 30 million gallons per year royalty-free into any field.

Butamax will take the lead role in developing the market for isobutanol. This will include progressing ongoing programmes to gain required EPA approvals for mainstream use of 16% isobutanol as a petrol blend component. Butamax has also conducted joint research with Underwriters Laboratories (UL), which has demonstrated that these blends can be used safely in fuel storage and dispensing equipment meeting current UL standards. It is expected that UL's guidance will clear the way for state government agencies to consider and approve the dispensing of biobutanol-petrol fuel blends in the US.

In parallel, Gevo will lead development of the jet fuel market. Gevo has been producing and selling alcohol-to-jet fuel (ATJ) derived from isobutanol since 2011. The company intends to begin test flights with the commercial aviation industry, including Alaska Airlines, following receipt of ASTM International certification, expected before the end of 2015.

While Butamax and Gevo have cross-licensed all of their patents for making and using isobutanol, both parties will have their own biocatalyst and process technologies. Both Butamax and Gevo are free to license their respective technology packages to third parties. A third party licensee would be granted a sub-license, and would be subject to terms and conditions that are consistent with the cross-license between Butamax and Gevo.

'We are very pleased to have reached this amicable and fair settlement. Setting up the marketing relationships, as we have done, brings to bear the capabilities of each of the companies,' comments Dr Patrick Gruber, Gevo's CEO. 'We very much look forward to developing a very large, growing and profitable isobutanol market in conjunction with Butamax.'

'The aim of these agreements is to accelerate development of markets for bio-based isobutanol,' Butamax CEO Paul Beckwith adds. 'This will create exciting opportunities for ethanol producers to expand their businesses by becoming isobutanol producers, at the same time enabling the most competitive isobutanol supply for customers.'





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