HCS Group GmbH, the owner of Haltermann Carless, one of the oldest companies in the world of Chemistry, announced today that it had entered into a Letter of Intent with Gevo, Inc. (GEVO) to purchase renewable isooctane pursuant to a long-term off-take agreement. GEVO is a leading renewable chemicals and advanced biofuels company headquartered in Englewood, CO.
The Letter of Intent contemplates the parties negotiating and entering into a definitive off-take agreement that will have two phases. The first phase will be an off-take of renewable isooctane or high octane paraffinic hydrocarbons from GEVO’s demonstration plant located in Silsbee, TX. The second phase will be an off-take of renewable isooctane from GEVO’s planned commercial asset to be constructed. The demo off-take phase will commence in 2017. The long-term commercial off-take will commence on the date on which GEVO has shipped first commercial product to Haltermann Carless and has the flexibility to be expanded in both agreed volume and duration. Haltermann Carless will market and distribute the products globally in various applications.
In addition to the products contained in the Letter of Intent, it is the intent of both GEVO and Haltermann Carless to jointly establish a separate off-take agreement for bio-based jet fuel or other products such as bio-based isobutanol.
“In line with our commitment to deliver state-of-the-art sustainable solutions to our customers, we are excited to partner with GEVO as a major and substantial off-taker of renewable components manufactured by GEVO. We are convinced about the maturity and competitiveness of GEVO’s technology and look forward to a fruitful partnership”, said Henrik Krüpper, CSO and Member of the HCS Group’s Executive Committee.
“We are very pleased to join forces with Haltermann Carless, which is world renowned in the industry for the high quality of its performance fuels,” said Patrick Gruber, Chief Executive Officer of GEVO. “By combining technical know-how and new renewable technologies, we start a very promising partnership in developing and implementing next-generation biofuels and bio-based chemical products.”
Haltermann Carless has a network of manufacturing facilities in the United States, Germany, the UK and France. The company is part of HCS Group. Headquartered in Englewood, CO, GEVO has locations in Silsbee, TX and Luverne, MN.
About the HCS Group
The HCS Group is a leading manufacturer of specialty products and solutions in the hydrocarbons sector. The Group includes the brands Haltermann Carless, ETS Racing Fuels and EOS. The HCS Group belongs to H.I.G. Europe, a subsidiary of the US private equity company, H.I.G. Capital.
About Haltermann Carless
Haltermann Carless, one of the oldest chemical companies in the world, provides innovative hydrocarbon-based specialty products and solvents and associated services to best serve its customers. The company operates a network of state of the art facilities for refining, processing and blending to produce a wide variety of specialty products in key business areas: Automotive, Middle Distillates, Oil & Gas, Pentanes, Performance Fuels, Performance Solvents and Special Aromatics.
Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize bio-based alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce renewable jet fuel, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water.