October 2014 Management Presentation
© 2015 Gevo, Inc. | 1
April 2015 Alcohol to Hydrocarbons
Forward-Looking Statements
© 2015 Gevo, Inc. | 2
Certain statements in this presentation 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, 2011, as amended, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the SEC by Gevo. This presentation is based on information that is generally available to the public and does not contain any material, non-public information. This presentation has been prepared solely for informational purposes and is neither an offer to purchase nor a solicitation of an offer to sell securities.
Why Should We Care?
© 2012 Gevo, Inc. | 3
Petroleum Industry Mega Trends
Canadian Oil Sands Supply Costs and Development Projects (2011-2045) 7
March 2012
devoted to mining is 374,000 ha (or 2.6 percent of the total surface area), which pales in comparison to the 14,170,000 ha that could be recovered using in situ methods.
Figure 2.2 Mining and Extraction
Source: Suncor Energy Inc.
Figure 2.3 In Situ - SAGD
Source: Suncor Energy Inc. (Firebag project).
North American Sources
Shifting Product Demand
Human Health Concerns
“By 2040, oil sands will account for 25 percent of total liquids supply in NA, SA” Exxon 2012 Outlook for Energy
0
1
2
3
4
5
6
7
8
9
2010
2035
Gasoline -10%
Diesel, Jet + 25%
2010
2035
mmBPD
Source: Exxon
US Oil “Boom” from fracking
© 2015 Gevo, Inc. | 4
“Nationally, the average economic value of health impacts associated with fossil fuel usage is $0.14–$0.35/kWh. For coal, oil, and natural gas, respectively, associated economic values of health impacts are $0.19–$0.45/kWh, $0.08–$0.19/kWh, and $0.01–$0.02/kWh” Environment International Volume 52, February 2013, Pages 75–80
Our Understanding of Trace Chemicals is Changing
Reference: OurStolenFuture.org
Oil/Carbohydrate Spread Growing
© 2015 Gevo, Inc. | 6
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$1,400 Ja
n-01
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Cos
t of
Car
bon
($/M
T)
Carbon Source WTI Crude Oil CBOT Corn
Source: CBOT, EIA
Oil Costs Have Historically Risen Faster than Carbohydrates
Confidential
PP
PE
PVC PX
Polystyrene Butadiene ABS
Nylon Butenes (Chemicals)
Synthetic Rubber
PET
Polycarbonate Acrylic Acid
Silicones
Gasoline
Diesel
Jet Fuel
Lubricants
Surfactants
Ethanol
Butenes (Fuels)
1
10
100
1,000
10,000
$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00
Price ($/lb)
Low Cost Makes The Market Opportunities Possible
Sources: Nexant, IEA, F.O. Licht, Gevo
© 2014 Gevo, Inc. | 7 © 2014 Gevo, Inc. | 7
Gevo’s IBA cost is expected to improve further to continue expanding into higher value markets
Mar
ket s
ize
(bn
lbs)
© 2015 Gevo, Inc. | 8 Source: Adapted from Nexant
Benzene
Toluene
Xylenes
Aromatics
Unsaturated Polyesters
Polypropylene
Jet Fuel
Gasoline
Diesel
Natural Gas Steam Cracking Olefins
Pyrolysis Gasoline
meta-Xylene
para-Xylene
ortho-Xylene
Methyl Methacrylate
Toluene Diamine
Cyclohexane
Ethyl Benzene
Cumene
Acrylonitrile
Propylene Oxide
Isobutene
Ethanol
alpha-Olefin
Polyols
Phenol
Acetone
Styrene
Adipic Acid
Caprolactam
Toluene Diisocyanate
Phthalic Anhydride
Isophthalic Acid
PTA
Ethylene Glycol
MTBE/ETBE
Polyesters(PET)
Plasticizers
Polyurethane
Nylon 6
Nylon 66
SB Latex
ABS
Polystyrene
Butadiene-Styrene
Polybutadiene
Polyacrylonitrile
Polyisobutylene
Polyester
Poly(vinyl cloride)
Polyethylene
Ethylene
Propylene
Butylenes
Butadiene
Vinyl Chloride
Crude Oil
Ethylene Oxide
EDC
Hydrocarbon Fuels
Naphtha
Chemicals and Materials
Well Developed Systems for Oil and Gas…..
© 2015 Gevo, Inc. | 9 Source: Adapted from Nexant
Benzene
Toluene
Xylenes
Aromatics
Unsaturated Polyesters
Polypropylene
Jet Fuel
Gasoline
Diesel
Natural Gas Steam Cracking Olefins
Pyrolysis Gasoline
meta-Xylene
para-Xylene
ortho-Xylene
Methyl Methacrylate
Toluene Diamine
Cyclohexane
Ethyl Benzene
Cumene
Acrylonitrile
Propylene Oxide
Isobutene
Ethanol
alpha-Olefin
Polyols
Phenol
Acetone
Styrene
Adipic Acid
Caprolactam
Toluene Diisocyanate
Phthalic Anhydride
Isophthalic Acid
PTA
Ethylene Glycol
MTBE/ETBE
Polyesters(PET)
Plasticizers
Polyurethane
Nylon 6
Nylon 66
SB Latex
ABS
Polystyrene
Butadiene-Styrene
Polybutadiene
Polyacrylonitrile
Polyisobutylene
Polyester
Poly(vinyl cloride)
Polyethylene
Ethylene
Propylene
Butylenes
Butadiene
Vinyl Chloride
Crude Oil
Ethylene Oxide
EDC
Hydrocarbon Fuels
Naphtha
Chemicals and Materials
……Can Be Co-Opted for Renewables
From just EtOH and IBA most chemicals can be made cost effectively
Alcohols
Crossing Over from Agriculture to Chemicals
Complicated Raw Materials Demanding Performance
Complex Mixture Animal Feed
Simple Alcohol
Renewable Feedstock
Crossing Over from Agriculture to Chemicals
Complicated Raw Materials Demanding Performance
Complex Mixture
(EtOH or IBA)
Animal Feed
Simple Alcohol
Ag World
Renewable Feedstock
Crossing Over from Agriculture to Chemicals
Complicated Raw Materials Demanding Performance
Complex Mixture
(EtOH or IBA)
Animal Feed
Alkenes
Hydrogen
Hydrocarbon Fuels
Polymers/Plastics
Chemical Products
Simple Alcohol
Ag World Chemical World
Renewable Feedstock
Isobutanol
Low-Cost Renewable Chemicals and Fuels Through Isobutanol
Feedstock Proprietary Technology
Direct “drop-in”
Yeast Biocatalyst
Proven at commercial scale
GIFT® Separator
Derivatives
Price and performance attributes driving demand
Diesel fuel
PX / PET
Jet fuel
Isooctane
Commercial Markets
Chemical intermediates
Premium flex fuel (i60)
Solvents
Marine / Off-road blendstock (i16)
Specialty blendstock (i12.5)
© 2015 Gevo, Inc. | 14
Gevo Isobutanol, Ethanol & Animal Feed Plant
© 2015 Gevo, Inc. | 15
LUVERNE, MN
275,000 Gallon Fermenters Asceptic, not sterile
Fermentation time: <45 Hours Yield: ~1.9 gallons/BU Titer: ~115 g/l
Customers and Partners
Low RVP, high octane are desired blend properties
Priced lower than Gasoline
5 7-
9 12
18
>
50
RV
P (
psi)
70-75 87-93 >100 118
Priced higher than Gasoline
Ethanol Winter
Gasoline
Typical summer Gasoline
Butane (gasoline - $0.70/gal)
Natural Gasoline (gasoline - $0.50/gal)
Alkylate (gasoline + ~ $0.20/gal)
Isobutanol
Octane
Mitigates stress corrosion cracking (SCC) Stress Corrosion Cracking (SCC)
SCC Present
No SCC (12.5% IBA)
Fully compatible with infrastructure (pipelines, tanks, etc.)
Isobutanol is an Excellent Gasoline Blendstock
Not miscible in water
Less water contamination in fuel
Enables pipeline shipping
© 2015 Gevo, Inc. | 16
Isobutanol to Butylene, Jet, Isooctane, and PX IBA to Hydrocarbon Plant, SHR, Silsbee, TX
Isobutanol Isobutylene C8-C16 olefins
Dehydration
Oligom
erization
Hydrogenation
Distillation
Isooctane
Jet
2-phase separator
Water
i-BuOH
© 2014 Gevo, Inc. | 17 1 Includes value for co-products (mixed xylenes, hydrogen, gasoline blendstock) 2 Assume s RIN at $0.45/gal
Dehydrogenation
Crystallization
PX
Yield
91% 98% 98%
PX Jet fuel Isooctane
(% of theoretical, mass basis)
PX
Jet Fuel
Isooctane
Operational since 2011
Ready for commercial engineering
Jet and Isooctane are lowest cost renewable options (according to market place)
Jet is isoparaffinic kerosene
PX is raw material for PET
Ethanol to Hydrocarbons
Converting Ethanol to Chemicals--Economically
© 2015 Gevo, Inc. | 19
Confidential
Chemical reaction
• Change of process conditions leads to different product mixes in same capital base
Isobutylene
Propylene
Hydrogen Other
Isobutylene Propylene
Hydrogen
Other Isobutylene Propylene
Acetone
Hydrogen Other
Catalyst
• Acetone, Propylene (and propylene derivatives), Isobutylene, and Hydrogen are All Projected to be Cost Competitive with Petro-based Equivalents
Ethanol Can Give Chemicals and Hydrogen (ETO Process)
© 2015 Gevo, Inc. | 20
For each 1 million gallons of ethanol feed, the following could produced: 1.5 KT of Acetone, or 1.1 KT of Propylene, which can be converted to
– 1.7 KT of n-Butanol – 300K Gallons of diesel or Jet
AND 0.18 to 0.2 KT of hydrogen (depending on co-products) – Which equates to ~0.5 MW of electricity – Or be sold as renewable hydrogen
Plant A Plant using 20MPGY Ethanol feed could produce: -4 KTA of Hydrogen or 10 MWatts of power and -30 KTA of Acetone
How Much Product Can Be Made From Ethanol?
© 2015 Gevo, Inc. | 21
Production Plant Scenarios
Plant B Plant using 60MPGY Ethanol feed could produce: -10 KTA of Hydrogen or 25 MWatts of power and -69 KTA of Propylene
Plant B Plant using 100MPGY Ethanol feed could produce: -19 KTA of Hydrogen or 48 MWatts of power and -30 MGPY of Diesel of Jet Fuel
Para-Xylene is a building block for polyester plastics and fibers
Working to arrange commercial supply
Cost competitive bio-acetone and isobutanol for solvents, pharmaceuticals and electronics applications
Rubber for tires Building block for plastics
for car parts Cost competitive
Feedstock for
superabsorbant Feedstock for
polypropylene Cost competitive
ASTM Certification led by Gevo, expected 1H 2015
Supplied to US Military and others for engine and flight testing.
Oligomerization technology can be used to produce a Renewable Diesel
Early stage, has potential
Products, Partners, and Customers
Jet Fuel C8/Isooctane PX
Sales of both isooctane and isooctene
Suitable for fuel cells Cost competitve
Isobutylene
© 2015 Gevo, Inc. | 22
Diesel
Solvents Hydrogen
Propylene
Interest from Automobile, Fuel Cell Manufacturers, Gas
Suppliers Interest from
Strategics
Interest from Strategics
Interest from Strategics
FUTURE Cleaner processes Reduce, eliminate toxics Cost competitive Renewable Carbon reductions Emission Reductions Co-produce food/feed Clean water Co-produce energy Profitable
October 2014 Management Presentation
© 2015 Gevo, Inc. | 24
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