Gevo and LG Chem Extend Joint Development Agreement for Bio-Propylene to Accelerate Commercialization Using Gevo Ethanol-to-Olefins Technology
Gevo and LG Chem have extended their joint development agreement to accelerate the commercialization of Gevo's Ethanol-to-Olefins (ETO) technology. The extension allows LG Chem to evaluate existing assets for implementing the ETO technology, which can produce carbon-neutral or carbon-negative alternatives to petroleum-based building blocks. The partnership focuses on developing bio-propylene, which can be used as a renewable raw material for various plastic products, from auto parts to flooring and diapers. Dr. Paul Bloom, Gevo's Chief Carbon and Innovation Officer, highlighted that commercial activities are progressing ahead of the original timeline.
Gevo e LG Chem hanno esteso il loro accordo di sviluppo congiunto per accelerare la commercializzazione della tecnologia Ethanol-to-Olefins (ETO) di Gevo. L'estensione consente a LG Chem di valutare le risorse esistenti per implementare la tecnologia ETO, che può produrre alternative a base di carbonio neutro o negativo rispetto ai materiali di partenza a base di petrolio. La partnership si concentra sullo sviluppo del bio-propilene, che può essere utilizzato come materia prima rinnovabile per vari prodotti in plastica, dai componenti per auto ai pavimenti e ai pannolini. Il Dr. Paul Bloom, Chief Carbon and Innovation Officer di Gevo, ha sottolineato che le attività commerciali stanno progredendo anticipatamente rispetto alla tempistica originale.
Gevo y LG Chem han ampliado su acuerdo de desarrollo conjunto para acelerar la comercialización de la tecnología Ethanol-to-Olefins (ETO) de Gevo. La extensión permite a LG Chem evaluar los activos existentes para implementar la tecnología ETO, que puede producir alternativas carbono-neutras o carbono-negativas a los bloques de construcción a base de petróleo. La asociación se centra en el desarrollo de bio-propileno, que puede utilizarse como materia prima renovable para diversos productos de plástico, desde piezas de automóviles hasta suelos y pañales. El Dr. Paul Bloom, Director de Carbono e Innovación de Gevo, destacó que las actividades comerciales están avanzando por delante del cronograma original.
Gevo와 LG Chem은 Gevo의 이탄올-올레핀(ETO) 기술 상용화를 가속화하기 위해 공동 개발 계약을 연장했습니다. 이번 연장은 LG Chem이 ETO 기술을 구현하기 위한 기존 자산을 평가할 수 있도록 합니다. ETO 기술은 석유 기반의 빌딩 블록에 대한 탄소 중립 또는 탄소 부정적인 대안을 생산할 수 있습니다. 이 파트너십은 자동차 부품부터 바닥재 및 기저귀에 이르는 다양한 플라스틱 제품의 재료로 사용될 수 있는 바이오 프로필렌 개발에 집중하고 있습니다. 폴 블룸 박사, Gevo의 최고 탄소 및 혁신 책임자는 상업 활동이 원래 일정보다 빠르게 진행되고 있다고 강조했습니다.
Gevo et LG Chem ont prolongé leur accord de développement conjoint pour accélérer la commercialisation de la technologie Ethanol-to-Olefins (ETO) de Gevo. Cette prolongation permet à LG Chem d'évaluer les actifs existants pour mettre en œuvre la technologie ETO, qui peut produire des alternatives neutres en carbone ou négatives au pétrole. Le partenariat se concentre sur le développement du bio-propylène, qui peut être utilisé comme matière première renouvelable pour divers produits en plastique, des pièces automobiles aux revêtements de sol et aux couches. Le Dr. Paul Bloom, Chief Carbon and Innovation Officer de Gevo, a souligné que les activités commerciales progressent plus rapidement que prévu.
Gevo und LG Chem haben ihre gemeinsame Entwicklungsvereinbarung ausgeweitet, um die Kommerzialisierung der Ethanol-to-Olefins (ETO)-Technologie von Gevo zu beschleunigen. Die Erweiterung erlaubt es LG Chem, bestehende Vermögenswerte zur Implementierung der ETO-Technologie zu bewerten, die kohlenstoffneutrale oder kohlenstoffnegative Alternativen zu erdölbasierten Baustoffen produzieren kann. Die Partnerschaft konzentriert sich auf die Entwicklung von Bio-Propylene, das als erneuerbares Rohmaterial für verschiedene Kunststoffprodukte verwendet werden kann, von Autoteilen bis hin zu Böden und Windeln. Dr. Paul Bloom, Chief Carbon and Innovation Officer von Gevo, hob hervor, dass die kommerziellen Aktivitäten schneller voranschreiten als ursprünglich geplant.
- Partnership with major chemical company LG Chem accelerating commercialization ahead of schedule
- Technology can produce carbon-neutral/negative alternatives to petroleum products
- Potential market expansion into various plastic products sectors
- No immediate revenue generation mentioned
- Commercialization timeline and costs not specified
Insights
The extension of the joint development agreement between Gevo and LG Chem represents a significant technological advancement in bio-based chemicals. The ETO technology's ability to convert ethanol into olefins, particularly bio-propylene, could revolutionize the petrochemical industry. The accelerated timeline suggests promising early results in the development phase. The technology's potential to create drop-in replacements for petroleum-based products while maintaining carbon-neutral or negative status addresses both technical and environmental challenges. Integration with LG Chem's existing assets could significantly reduce commercialization costs and time-to-market.
This partnership acceleration signals strong commercial viability for Gevo's ETO technology. The bio-propylene market presents substantial growth opportunities, particularly in bioplastics and sustainable materials. LG Chem's commitment to fast-tracking commercialization ahead of schedule suggests confidence in market demand and potential returns. The ability to produce drop-in replacements for various consumer products - from auto parts to diapers - opens up multiple high-value market segments. This positions Gevo to capture significant market share in the growing sustainable materials sector, potentially transforming their revenue model from primarily biofuels to include high-margin chemical products.
The renewed commitment by both partners accelerates efforts to scale up commercialization ahead of the original timeline
ENGLEWOOD, Colo., Dec. 12, 2024 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) and LG Chem, Ltd. (KRX: 051910), leading global chemical companies committed to producing sustainable products, are extending their joint development agreement (the “Agreement”). The agreement extension enables LG Chem to assess existing assets for deploying Gevo’s Ethanol-to-Olefins (“ETO”) technology while accelerating commercialization activities, considering project scale and end-product markets.
“Gevo’s partnership with LG Chem is a great example of how we intend to accelerate development and commercialization of our patented ETO technology to enable renewable chemicals with our world-class partner,” said Gevo’s Chief Carbon and Innovation Officer, Dr. Paul Bloom. “Our ethanol-to-olefin process holds immense promise to decarbonize a substantial portion of the market for propylene, and LG Chem is starting commercial activities ahead of the timeline we originally planned.”
Gevo’s patented ETO technology can target carbon-neutral or carbon-negative drop-in replacements for traditional petroleum-based building blocks. These are core olefins, that can be used for renewable fuels and chemicals, including sustainable aviation fuel and bio-propylene. ETO technology is just one of multiple patented technologies that Gevo is bringing to bear on the challenges of developing cost-effective bio-based renewable fuels and chemicals.
“LG Chem is committed to scaling pathways to sustainable products, and leveraging partnerships is a proven way to gain access to proprietary technologies and share ours,” said Dong-hyun Cho, Vice President, Head of LG Chem’s Petrochemicals R&D. “Our joint development agreement with Gevo is already helping LG Chem to shape sustainable and eco-friendly future business strategies.”
Because it can replace fossil-based products as a renewable raw material for various plastic products, bio-propylene is expected to play a pivotal role in the rapid growth of the bioplastic market and circular economy. Once commercialization is achieved, bio-propylene could be used as a drop-in replacement for use in a range of products from auto parts to flooring to diapers to replace petroleum products with bio-based materials with a low or negative carbon footprint.
About Gevo
Gevo's mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of their business systems through its Verity subsidiary.
For more information, see www.gevo.com.
About LG Chem
LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high-value-added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem is committed to reaching carbon-neutral growth by 2030 and net-zero emissions by 2050 by managing the impacts of climate change and making positive contributions to society through renewable energy and responsible supply chains. Headquartered in Seoul, Korea, LG Chem has multiple operation sites worldwide and generated consolidated revenue of KRW 55.2 trillion (USD 42.3 billion) in 2023.
For more information, visit www.lgchem.com.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s ETO technology, the commercial benefits of bio-propylene, whether the ETO technology will be commercialized, the benefits that might accrue as a result of the Agreement with LG Chem, and other statements that are not purely statements of historical fact. These forward-looking statements are made based on 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 Gevo undertakes 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 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, 2023, 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.
Media Contact
Heather Manuel
Vice President, Stakeholder Engagement & Partnerships
PR@gevo.com
IR Contact
Eric Frey
Vice President of Corporate Development
IR@Gevo.com
FAQ
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