ENGLEWOOD, Colo.--(BUSINESS WIRE)--Gevo, Inc. (NASDAQ: GEVO), a renewable chemicals and advanced biofuels company, today announced it had signed an off-take and marketing agreement with Land O’Lakes Purina Feed LLC for the sale of distillers grains from Gevo’s isobutanol production facility (isobutanol distillers grains or, iDGs™) at Luverne, Minnesota. Land O’Lakes Purina Feed will be the exclusive marketer of Gevo’s isobutanol dried and modified wet distillers grains for the animal feed market. Further, the companies plan to work together to explore opportunities to upgrade the material for special value-added applications in feed markets.
“Corn is interesting as a feedstock because it has both protein and carbohydrates. Producing protein and animal feed from agriculture is extremely important, and selling the protein for feed, and using the excess carbohydrate for chemicals and fuels makes great sense given the fact that almost all of the nutritional value of corn can be captured in the animal feed product,” said Patrick Gruber, Ph.D., CEO of Gevo. “We are looking forward to working with Land O’Lakes Purina Feed, the country’s leading brand and largest producer of animal feed, to establish a market for and explore ways to add nutritional value to our iDGs™.”
“When a partnership is developed between the technological expertise of Gevo and the research capabilities and customer networks of Land O'Lakes Purina Feed, it presents another opportunity to add value to grain farmers and livestock producers alike,” said John Hany, director, direct ship merchandising and DDG marketing for Land O’Lakes Purina Feed. “We are very excited about our future together and the potential gains that may be had by all involved.”
According to the USDA’s Economic Research Service, one metric ton of dried distillers grain can replace on average 1.22 metric tons of animal feed consisting of corn and soybean meal in the USA. Distillers grains have higher concentrations of protein and nutrients, allowing them to displace a disproportionate amount of corn and soybean meal in animal feed. Gevo's fermentation process converts only the carbohydrates (corn starch) into isobutanol while capturing 100 percent of the corn protein, the most valuable part, for animal nutrition. The feed value of the iDGs™ reduces Gevo's net carbohydrate costs.
Gevo is converting existing ethanol plants into biorefineries to make renewable building block products for the chemical and fuel industries. The Company plans to convert renewable raw materials into isobutanol and renewable hydrocarbons that can be directly integrated on a “drop in” basis into existing chemical and fuel products to deliver environmental and economic benefits. Gevo is committed to a sustainable biobased economy that meets society’s needs for plentiful food and clean air and water. For more information, visit www.gevo.com
About Land O’Lakes, Inc.
Land O’Lakes, Inc. (www.landolakesinc.com) is a national, farmer-owned food and agricultural cooperative with 2010 sales of $11 billion. Land O'Lakes is the nation’s second-largest cooperative and number 218 on the Fortune 500. The company does business in all 50 states and more than 60 countries. It is a leading marketer of a full line of dairy-based consumer, foodservice and food ingredient products across the United States; serves its international customers with a variety of food and animal feed ingredients; and provides farmers and ranchers with an extensive line of agricultural supplies (feed, seed, and crop protection products) and services. Land O’Lakes also provides agricultural assistance and technical training in more than 25 developing nations.
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements that are not purely statements of historical fact, and can sometimes be identified by our use of terms such as “intend,” “expect,” “plan,” “estimate,” “future,” “strive” and similar words. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although the company believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2010, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo.