Gevo, Inc. (NASDAQ:GEVO) has announced that it has entered into an agreement, with one of the leading specialty chemical companies, Clariant Corp. The agreement calls for Clariant to develop catalysts for the company’s ETO technology. Gevo has already disclosed that it plans to use the ETO technology to manufacture hydrogen, propylene and isobutylene, by using ethanol. Eventually, these molecules can be later used for the manufacture of diesel fuel and commodity plastics.
Gevo’s ETO technology makes use of mixed metal oxides, as catalysts. The plus point for this technology is that it can produce high yields of the molecules, in a single step, from fuel grade ethanol. Gevo is now going to focus its internal resources on its isobutanol technology, which is being further optimized, while the scale-up and development of catalysts for the ETO would be transferred to Clariant.
The company has disclosed that once the technology has been successfully completed and up-scaled, Clariant would be asked to meet the catalyst requirements on a commercialization level. Gevo also plans to expand the use of the ETO through licensing. Patents for the ETO have already been filed, with the Patent Office.
Gevo recently filed its 1Q2016 financial results as well, with a loss of $0.16 per share. However, the company had cash reserves of $8.7 million, with $6.3 million in revenues. The company reported that revenues were up by $0.4 million, on a year-over-year basis. While Gevo reported an improvement in revenues and sales, the lower hydrocarbon and ethanol pricing resulted in a gross loss for the quarter, of $2.9 million. The company was also able to successfully lower its operating and R&D expenses by $2.6 million and $0.7 million respectively. A $2.4 million decline was also observed in patent and litigation legal expenses.
Gevo, Inc. (NASDAQ:GEVO) reported a trade volume of 9.22 million and lost 7.72% of its share value, during the May 19 trading session, to close at a share price of $0.311.