Next generation biofuels producer Gevo has signed an exclusive right to sell agreement with national fuel distributor Musket Corporation. Amending an existing supply agreement, the deal will see Musket sell Gevo’s renewable isobutanol within a 300 mile radius of Houston, Texas.
According to Gevo, the agreement establishes a market region for its isobutanol that encompasses Austin, Dallas, Fort Worth, Oklahoma, Louisiana and much of south and east Texas.
Houston is classified as a Reformulated Gasoline (RFG) market under Environmental Protection Agency (EPA) guidelines. Most RFG gasoline is formulated with ethanol as the oxygenate, but isobutanol enables an ethanol free blended gasoline in RFG areas that meet all EPA guidelines.
“Gasoline made with isobutanol is another offering we can provide to the marketplace to meet demand in RFG areas,” said JP Fjeld-Hansen, vice-president of Musket.
"We believe Musket is an excellent partner to expand the use of isobutanol in gasoline blends for the ethanol free gasoline market in Houston and adjacent areas. Musket has a strong national market reach in the fuel distribution arena and is well positioned to grow the market. This exclusive arrangement incents Musket and Gevo to continue their collaborative marketing efforts, and it is expected to deliver a bigger network of distribution and retail outlets as demand for these ethanol free gasoline products develops," said Dr. Patrick Gruber, CEO of Gevo.