Company Presentation
Management Presentation
January 2017
October 2014
© 2016 Gevo, Inc. | 1
Forward-Looking Statements
Certain statements within this presentation may constitute “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements relate to a variety of matters, including but not limited to: the ability
of Gevo to enter into a definitive offtake agreement with Lufthansa; Gevo’s ability to restructure its current outstanding debt
successfully; Gevo’s ability to maintain its listing on the Nasdaq Capital Market; Gevo’s ability to become profitable; the ability of
Gevo to build out the Luverne production facility to increase the production of isobutanol and/or hydrocarbon products;
addressable markets, size of markets and market demand for isobutanol, ethanol and their derivatives; optimized isobutanol
production costs and plant-level economics, including achievable EBITDA margins; future market opportunities related to Gevo’s
alcohol-to-hydrocarbons technologies; Gevo’s ability to successfully scale up its ethanol-to-olefins technology; Gevo’s ability to
obtain customer, licensing, investment and strategic partnership commitments and the timing of bringing such commitments
online; Gevo’s future isobutanol and ethanol production capacity and the timing associated with bringing such capacity online;
estimates of the timing and costs of capital expenditures at the Luverne plant and the impact of such installations; Gevo’s ability
to sustain achievements in production capacity; the strength of Gevo’s intellectual property position and its ability to successfully
and profitably license its technology platform to third parties; the performance of Gevo’s isobutanol yeast biocatalyst; the
availability of additional production volumes to seed additional market opportunities; the expected applications of isobutanol,
including its use to produce renewable paraxylene, PET, isobutanol-based fuel blends, isooctane and ATJ bio-jet; the expected
cost-competitiveness and relative performance attributes of isobutanol and the products derived from it; the future price
volatility of isobutanol and its derivatives; any potential decreases in Gevo’s expense levels, and anticipated EBITDA burn rates
and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis
of the current beliefs, expectations and assumptions of Gevo’s management and are subject to significant risks and uncertainty.
All such forward-looking statements speak only as of the date they are made, and Gevo assumes no obligation to update or
revise these statements, whether as a result of new information, future events or otherwise. Although Gevo 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 discussion of the 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 the company in general, see the risk disclosures in
Gevo’s Annual Report on Form 10-K for the year ended December 31, 2015, as amended, and in subsequent reports on Forms
10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo, including any prospectus
supplements related to this offering.
This presentation is based on information that is generally available to the public. 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.
© 2016 Gevo, Inc. | 2
Company Overview
© 2016 Gevo, Inc. | 3
Gevo Overview
Business Overview
Headquarters: Englewood, CO
Founded: 2005
Employees: ~70
Gevo is a leading producer of proprietary fuels and specialty
chemicals from renewable feedstocks
Produces renewable jet fuel, renewable gasoline (isooctane),
and isobutanol (IBA) each of which serves as value-added,
proprietary fuels
Gevo’s technology is unique, cost effective, and proprietary
Facility Overview
Corporate Headquarters (Englewood,
CO) – Houses corporate functions
and Gevo’s main R&D laboratories
Isobutanol Production Facility
(Luverne, MN) – World-class facility
capable of annual production
potential of 14MM+ gallons of
isobutanol
Luverne Facility
Jet and Isooctane Biorefinery
(Silsbee, TX) – Facility that
transforms isobutanol to jet fuel,
isooctane and para-xylene (PX)
Silsbee Facility
End Markets Served
Key Customers, Partnerships, and Agreements
Renewable jet fuel
Renewable gasoline (isooctane)
Specialty chemicals and solvents
Specialty gasoline blendstock
– “Ethanol (ETOH) free” high octane gasoline
• Marine / off-road blendstock
• On-road use for high performance, racing and
classic cars
4
Gevo’s Current Business System
Gevo Production Facilities
Core Addressable Markets
Isobutanol Production – Side-by-Side with Ethanol
Isobutanol – Drop-in Markets
Luverne, MN
Isobutanol
Specialty Chemicals & Solvents
Gasoline Blendstock
(On-Road, Marine/Off-Road, ‘Ethanol Free’)
15 MGPY Ethanol
1.5 MGPY Isobutanol*
Isobutanol
Hydrocarbon Biorefinery
South Hampton Resources
Silsbee, TX
Renewable
Hydrocarbons
Hydrocarbons – Drop-in Markets
Jet Fuel
Isooctane (Gasoline)
* MGPY = million gallons per year; estimated isobutanol and ethanol design capacity
© 2016 Gevo, Inc. | 5
Gevo Opportunity
Gevo’s core addressable markets estimated at approximately 400-500 BGPY
Large Addressable
Markets
IBA’s application as a platform chemical opens multiple market opportunities cutting
across fuels, chemicals, packaging, textiles, plastics and other materials
Gevo’s existing partnerships and ongoing discussions with top tier airlines, petrochemical and specialty chemical companies underscore commercial demand
Given expected IBA production costs and product performance characteristics derived
from renewable carbon; Gevo’s products enjoy specialty chemical margins in larger
commodity-oriented markets such as fuels
Proprietary
Products with Low
Cost & High
Performance
Gevo’s products consistently demonstrate exceptional performance at parity or better
than that of incumbent petrochemical and bio-based products
The technology was designed to leverage low cost carbohydrate and ethanol
infrastructure to help operators expand or upgrade existing production to higher margin
opportunities
The high energy density of Gevo’s products provide higher RIN value compared to
traditional ethanol – 30% higher for isobutanol (IBA); 60-70% higher for hydrocarbons
The Luverne plant is a commercial scale, side-by-side IBA/ethanol production facility
Commercial Scale
Production
Gevo expects to switch the entire production capacity at Luverne to IBA, of which the
majority would be allotted for jet fuel and renewable gasoline production; production is
expected to be largely sold under long term take-or-pay contracts; Gevo anticipates
that this configuration of the plant would take the company to cash flow breakeven and
profitability as an organization
Strong plant-level economics expected to underpin licensing strategy where Gevo
generates high margin license fees and royalties
6
Key Business and Production Milestones
Since resolving the Butamax litigation, Gevo has hit numerous business
milestones in a short period of time
Sep 2015 –
Gevo sells
isooctene to
BCD Chemie, a
subsidiary of
Brenntag
Feb 2016 –
Signs licensing
agreements with
Porta, targeting
the construction
of 4 isobutanol
plants
Aug 2015 –
Gevo and
Butamax
enter into
global patent
cross-license
agreement
Sep 2015 –
Gevo commits
$5m of capital to
build a complete
isobutanol
production line
Nov 2015 –
Entered into
development
license
agreement with
Praj
Production Milestone
Mar 2016 –
Gevo restarts the
production of
isobutanol
following the
capital
improvement
projects at
Luverne
Apr 2016 –
Alcohol to jet
fuel meets
approved ASTM
standard,
allowing
commercial
flights using
Gevo’s product
Jun 2016 –
Alaska Airlines
flies the first two
commercial
flights using
Gevo’s cornbased renewable
ATJ
May 2016 –
Clariant to
scale-up
catalysts for
Gevo’s Ethanolto-Olefins (ETO)
technology
Commercial Milestone
Jul 2016 –
Distillation
system is
completed and
Gevo hits batch
size of greater
than 20k gallons
of isobutanol
Jun 2016 –
Signs agreement
with Musket
Corporation to
supply isobutanol
for gasoline
blending
Licensing Milestone
Nov 2016 –
Alaska Airlines
flies the first
commercial flight
using Gevo’s
cellulosic
renewable ATJ
Sep 2016 –
Gevo signs heads
of agreement
with Lufthansa
to offtake up to
8 million gallons
of jet fuel per
year for five
years
© 2016 Gevo, Inc. | 7
Gevo’s Renewable Isobutanol: A Platform Molecule
ATTRACTIVE COST structure + RENEWABLE resource base
provide access to large addressable markets and enable new applications
Jet: 89B gallons
Solvents: 1.2B
gallons
Butenes: 2.1B
gallons
PX: 17.5B gallons
Renewable Gasoline
(Isooctane): 340B
gallons
Off-Road Gasoline
Blendstock: 1.8B
gallons
IBA
IBA-derived “Drop in”
Hydrocarbons
On-Road Gasoline
Blendstock: 41.2B
gallons
Gevo’s technology and cost structure enables high specialty product margins while
targeting very large fuel and chemical markets
Sources: EIA, IEA and Nexant, US DOE FHWA
8
Gevo Core Near-term Markets
Jet Fuel
Renewable Gasoline
(Isooctane)
Gasoline
Blendstock
Solvents & Chemical
Applications
Segment Overview:
Segment Overview:
Segment Overview:
Segment Overview:
Gevo’s Alcohol-to-jet (ATJ) is a
clean burning fuel that helps
reduce airline’s carbon
footprint and control fuel
costs. Driven by a growing
global commitment to reduce
greenhouse gas emissions, the
aviation industry has targeted
carbon neutral growth starting
in 2020. Gevo has the lowest
cost route to fully renewable
jet fuel at scale. In April 2016,
Gevo’s ATJ became ATSM
certified.
Isooctane is a known
performance molecule in fuel
blending (high octane, stable
octane, low RVP). Gevo’s
isooctane, a pure renewable
gasoline, enables zero sacrifice
in fuel performance compared
to other bio-based fuels. The
Company has seen high
demand for isooctane,
especially in the high
performance fuels market for
racing, aviation gas, and high
performance on-road vehicles.
Focus segments include
marine, off-road and high
performance on-road markets.
IBA-blended gasoline is ethanol
free and contains high octane.
IBA has superior technical
properties relative to ethanol.
IBA blended gasoline is
compatible with existing
infrastructure and gasoline
engines of all types. As policy
favors renewable fuels, Gevo’s
IBA qualifies for premium RIN
value that has resulted in
significant customer demand.
Gevo’s renewable IBA has
direct applications as a solvent
and chemical intermediate.
Gevo’s IBA can act as a direct
substitute for petroleum based
products and is a cost-efficient
and environmentally friendly
alternative.
TAM: 89 BGPY1
Key Customers:
TAM: 320 BGPY1
Key Customers:
1 – EIA IEO 2016 Liquid Transportation Fuels Demand
2 – Assumes 12.5% IBA blend into gasoline globally
3 – Nexant 2012 and SRI Consulting
TAM: 43 BGPY2
Key Customers:
TAM: 1.2 BGPY3
Key Customers:
© 2016 Gevo, Inc. | 9
Jet Fuel Market Summary
The renewable jet fuel market is expected to grow
significantly driven by a growing global commitment to
reduce greenhouse gas (GHG) emissions
U.S. Jet Fuel Consumption Forecast (bgpy)
The airline industry is trying to avoid being piecemeal
regulated, and the potentially prohibitive cost of
compliance, in each geography they overfly, so they have
agreed to regulate themselves in cooperation with the UN
25.4
Gevo believes it has the lowest cost route to fully
renewable carbon jet fuel at relevant airline industry scale
–
Gevo should be extremely difficult to beat
economically given the high yields and feedstock
flexibility
'16
25.6 25.6 25.6
'17
'18
'19
25.8
'20
26.0
'21
26.2
26.5
'22
'23
26.8
'24
27.1
'25
27.5
'26
27.8
'27
28.1
'28
28.4
'29
28.7
'30
Source: EIA 2016 Annual Energy Outlook
Key Announced Customers
Gevo’s ATJ is ASTM approved and is the only approved
ASTM carbohydrate-derived jet fuel that can be blended up
to 30%
–
It is not likely that any other technologies will be
able to leverage Gevo’s six-year certification process
and thus the timing for future approved alternative
products is uncertain
Announcements with Lufthansa and Alaska Airlines demonstrate strong
commercial interest in Gevo’s ATJ
© 2016 Gevo, Inc. | 10
Renewable Gasoline (Isooctane) Market Summary
Production of Gevo’s renewable gasoline (or isooctane)
leverages the same hydrocarbons technology used to
convert isobutanol to jet fuel
Gevo can replace much of the petroleum-based
components of gasoline with its renewable gasoline,
resulting in a finished gallon that can approach
100% renewable content
Thus, Gevo’s renewable gasoline enables extremely high
renewable content in a finished gasoline, while not
sacrificing the performance of such fuels
Isooctane Market Sizing and Price
The total addressable market for isooctane is a function of
the gasoline market, around 95% of gasoline market
A selling price for Gevo’s isooctane above $4 is justified
given the renewable content and the fuel’s properties, even
at todays oil price
Future Value (TBD) associated
with low carbon fuels
$5.00
$4.00
RIN Value
RIN Value of $1.28/gal
based on $0.80 RINs
$3.00
Tax Credit
Alternative Fuels Tax
Credit of $0.50/gal
$2.00
Property Premium
Premium based on high
octane and low RVP
Premium Gasoline
Estimate value at $65/bbl
oil
$1.00
$0.00
Renewable Isooctane
Source: Premium Gasoline Value based on $65bbl oil, RIN value of $0.80/RIN x equivalence value of 1.6
Key Announced Customers
In addition to on-road fuels, Gevo’s isooctane can serve
performance racing fuels and aviation gas market segments
Key demand drivers for Gevo renewable isooctane:
–
–
–
–
High performance, low sulfur and other impurities (e.g.
trace metals) and renewable carbon
Enables very high renewable content, high performance
gasoline
Provides an unleaded alternative for aviation gas
Minimal adoption hurdles because it is virtually identical
(chemically) to petro-isooctane (except for renewable
content)
Strong commitment to bio-isooctane
On-road use in medium/long term
Blended in the Formula 1 racing fuel
for the Red Bull Racing team
Multiple purchase orders, worth >$1
million collectively
Replacing petroleum-based
hydrocarbons
Subsidiary of Brenntag
© 2016 Gevo, Inc. | 11
Fuel Blendstock Markets for Isobutanol
Proposition: Isobutanol can be directly used as a gasoline blendstock, generally as an RFS-compliant renewable fuel to replace ethanol
Two primary blends: i12.5 (12.5% blended gasoline, typical for on-road vehicles) and i16 (16% blended gasoline, preferred by customers
for high octane content
Multiple valuable specialty markets
– Marine
– Off-road: packaged fuels, racing, off-road vehicles (ATV, snowmobile, etc.)
–
On-road: i12.5 (typical for on-road vehicles) and i16 (preferred for high octane content)
–
International oxygenate markets: high octane fuels increase performance
Key Demand Drivers
–
Isobutanol has superior chemical properties that allows it to be a high performance blendstock option for consumers of various
specialty fuels (High energy content, low Reid Vapor Pressure (RVP), and low water solubility)
–
‘Ethanol Free’ – gasoline with ethanol damages marine and off-road engines
–
–
Isobutanol blended gasoline requires no engine modifications to operate
Endorsement and testing by the National Marine Manufacturers Association; tested by the Outdoor Power and Equipment Institute
and Briggs & Stratton
Increased policy standards
–
Favorable pricing dynamics (low price volatility and low cost) allow for a less commoditized input and a product that commands a premium
–
Have been achieving targeted average selling price of $3.50-$4.50/gallon in marketplace
Key Customers
Key Partners
© 2016 Gevo, Inc. | 12
Solvents & Chemical Applications Market
Formulators are looking to include bio-based molecules in their products such as
paints, coatings, lubricants, and chemical intermediates
Demand drivers
Market Sizing (MGPY)
Product differentiation
Alternative/additional supply
Isobutanol,
200
Reduction in pricing volatility allows longer term
pricing agreements
Lower carbon footprint
N-Butanol,
1,050
Gevo’s isobutanol can displace n-butanol for many endmarket applications, opening up a broader market
opportunity across the wider butanols market
Key customers
One of the world’s leading
chemical distributors
Initially targeting niche markets
in North America
Gevo currently working with
Brenntag Canada, but looking to
expand globally
Source: Nexant
13
Gevo’s Production Plants
Isobutanol / Ethanol Plant (Luverne, MN)
Isobutanol-to-Hydrocarbons Plant (Silsbee, TX)
Operations
Operations
First commercial scale renewable isobutanol plant in the world
100% Gevo owned plant Purchased in 2010 has state of the
art infrastructure, strong transport options, and exceptional
supply access
Operational since 2011; capacity of 5-10k gallons of
isobutanol input per month
Operated in conjunction with South Hampton Resources;
achieving yields >90% of theoretical (on a mass basis)
World-scale chemicals plant capable of annual production of
approx. 100MM lbs. of alcohol and 100MM lbs. of animal feed
Originally constructed to produce and deliver testing
quantities of ATJ for the military at $59/gallon
Proprietary GIFT system enables commercial scale, cost
effective production of IBA
In 2013, constructed PX capabilities to deliver PX for Toray;
pilot development work funded by Coca-Cola
Retrofitted plant and started isobutanol production in 2012
Currently operating plant to produce isooctane for increasing
demand from EU market and to continue to produce ATJ for
additional testing volumes for commercial airlines
In 2014, moved to side-by-side mode to improve operability
of plant, and simplify isobutanol production
Projected isobutanol run rate capability of ~1.5M gallons per
year by end of 2016
Value of plant: has generated hydrocarbon products to prove
out technology and to seed markets in advance of
development of commercial-scale value chains
14
Building Out Luverne for Increased IBA & Hydrocarbons
Potential Buildout Overview
Hydrocarbon Production
Isobutanol (“IBA”)
Production
IBA for
Gasoline
Blendstocks
Alcohol-toJet Fuel
(“ATJ”)
Renewable
Gasoline
(Isooctane)
Discussions in
progress
& others
Animal feed
Convert fermentation to 100% IBA (by adding fermenters and other equipment); cease ethanol production
Add hydrocarbon plant that converts IBA to ATJ and renewable gasoline
Serve Gevo’s core markets:
–
–
ATJ
Renewable gasoline
Next Step:
–
–
IBA gasoline blendstocks
Animal feed
Determine ultimate product mix based on offtake agreements with customers
© 2016 Gevo, Inc. | 15
Business Models for Isobutanol
Build Out Strategies
Ethanol plants are looking to grow their business systems in a mature ethanol market
– Most plants have extracted as much revenue as possible out of their existing facilities and are looking to
grow by adding additional fermentation capacity for products like isobutanol
Side-bySide/
Retrofit
Side-by-Side at Luverne validates the model of isobutanol/ethanol co-production
Opportunities exist to completely retrofit and transform underperforming ethanol plants
Greenfields/
Brownfields
Given the market potential and margin for isobutanol and its hydrocarbons, opportunities for new plant builds
exist
Isobutanol feedstock flexibility and variety of markets makes this a truly global opportunity, with ability to
address demand for low-carbon fuels
North American Market
Blended business model
Own and operate Luverne
Added distillation and fermentation equipment, to run
IBA consistently
– Looking to build additional IBA and hydrocarbons
capacity at Luverne
–
Licensing model
– Leverage balance sheets of others
– Several domestic ethanol players are interested in
licensing model
– Announced licensing LOI with IGPC
International Market
Licensing model
Technology licensing agreements with international partners
Entered into commercial license agreement in February
2016; contemplates construction of at least four isobutanol
plants in Argentina, the first is expected to be owned by
Porta and have a production capacity of 5 MGPY
Entered into development license agreement with Praj in
November 2015; global footprint with a focus on cane and
molasses feedstocks
16
Experienced and Proven Management
Patrick Gruber, Ph.D.
CEO
Christopher Ryan, Ph.D.
President, COO & CTO
Mike Willis
CFO & EVP-Corp Dev & Strategy
Gregory Roda
Chief Commercial Officer
Geoff Williams
General Counsel
Gevo staff has directly relevant industrial experience in the development and
commercialization of industrial biotechnology products
© 2016 Gevo, Inc. | 17
Management Presentation
October 2014
© 2016 Gevo, Inc. | 18