Gevo narrows Q1 2016 loss

Gevo, a US biofuels producer, has narrowed its first quarter loss by 51% to $3.6 million (€3.17m), compared to a net loss of $7.3 million during the same period in 2015.

In a first quarter 2016 statement, the company said it was working to make its processes more efficient and ramp-up isobutanol production.

First quarter revenue increased to $6.3 million from $5.9 million year-over-year. This was primarily a result of higher ethanol production, partially offset by lower ethanol prices, in the first quarter of 2016 versus the same period in 2015.

During the first quarter of 2016, hydrocarbon revenues were $300,000, a decrease of approximately $200,000 from the same period in 2015. This decrease was primarily a result of the timing of shipments of finished products from Gevo’s hydrocarbons demonstration plant located in Silsbee, Texas.

Gevo also generated grant revenue of $300,000 during the first quarter of 2016, flat as compared to the same period in 2015. Gevo’s grant revenue is primarily generated through the work it is doing with the Northwest Advanced Renewables Alliance to produce isobutanol from cellulosic feedstocks, such as wood waste, which can then be converted into Gevo’s ATJ.

Isobutanol production

Elsewhere, Gevo highlighted that it had shipped its first railcar of finished isobutanol since the restart of production of isobutanol in March, following completion of the capital improvement projects undertaken at Luverne, Minnesota, to decrease the cost of isobutanol production.

The railcar is being sent to a terminal owned by CW Petroleum Corp. in Dayton, Texas, where it is expected to be delivered to retailers throughout Texas and sold primarily for marine and off-road specialty gasoline blendstock applications.

Gevo CEO Patrick Gruber said: “We are pleased with the progress we are making at Luverne since restarting isobutanol production in March of this year. Our isobutanol production guidance remains on track in terms of gallons we expect to produce this year and our targeted variable cost of production levels that we expect to achieve.

“We are excited to have more visibility into larger volumes of isobutanol coming from the Luverne plant. This visibility will enable us to really focus on developing some of our core markets, such as the marina and off-road markets.”

Separately, Gevo recently announced that Alaska Airlines is scheduled to fly the first-ever commercial airline flight using Gevo’s renewable alcohol to jet fuel (ATJ) in the first half of June 2016. 

The specific flight route is still being determined, however it is anticipated that the flight will depart from Alaska Airlines’ hub in Seattle–Tacoma International Airport. This follows the news announced in April that ASTM International had completed its process of approving a revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) to include alcohol to jet synthetic paraffinic kerosene (ATJ-SPK) derived from renewable isobutanol.

Speaking about the project, Gruber said: “I’m very excited that Alaska Airlines has set a date for its first test flight using our ATJ. We believe that this will be a key milestone in establishing our jet fuel vertical as a growth driver for Gevo’s overall business.”