HCS Group and Gevo sign agreement for the purchase and sale of renewable isooctane
Type of post: NEWS IN BRIEF.
Important step forward in Gevo’s strategy to
build out its advanced biofuels production facility in Luverne (Minnesota, USA).
The company announced two days ago that had entered into a long-term binding
agreement with HCS Group for the purchase and sale of renewable isooctane (a
low-carbon, drop-in blending component for gasoline).
Press release: “Gevo and HCS Group Enter Into
Game-Changing, Long-Term Supply Agreement for Renewable Isooctane Worth Up to
$180 Million”, 27/2/2019.
This agreement strengthens a partnership that
began with a prior agreement signed in 2017. Pursuant to the terms of the
agreement, Gevo will supply isooctane to HCS Group over ten years if certain
conditions are met, including the expansion of Gevo’s isooctane production
capabilities in Luverne.
HCS Group is a global provider of solutions for
high value specialty hydrocarbons and is active in a broad range of markets,
such as automotive, pharmaceutical and agrochemicals. It operates a network of
9 facilities for refining, processing and blending in Germany, UK, France and USA.
Gevo’s renewable isooctane will be supplied exclusively to HCS Group for applications
such as high purity solvents and specialty fuels under its Haltermann Carless
brand (excluding use of isooctane for on-road transportation fuels).