U.S. Grants Gevo a Patent for Breakthrough Ethanol-to-Olefin Process

Rhea-AI Summary

Gevo, Inc. (NASDAQ: GEVO) has been granted U.S. Patent No. 12,043,587 B2 for its ethanol to olefins (ETO) process by the U.S. Patent and Trademark Office. This breakthrough technology allows for the conversion of ethanol into olefins using proprietary catalyst combinations. The ETO process is designed to produce three and four carbon olefins from ethanol in a single step, potentially reducing energy consumption and capital costs in biofuel and biochemical production.

The patented process offers improved selectivity and control, making it suitable for producing both fuels and chemicals. Gevo has already licensed the technology to LG Chem for chemical production under a joint development agreement. This innovation is expected to significantly impact the production of sustainable aviation fuel (SAF) and other renewable products, furthering Gevo's mission to transition from fossil-based to renewable fuels and chemicals.

Positive

• Granted U.S. Patent No. 12,043,587 B2 for ethanol to olefins (ETO) process
• ETO process designed to reduce energy consumption and capital costs in production
• Technology licensed to LG Chem for chemical production
• Potential for improved production of sustainable aviation fuel (SAF) and other renewable products

Negative

• None.

Insights

Financial Analyst

Gevo's new patent for the ethanol-to-olefin (ETO) process is a significant development with potential long-term benefits. This proprietary technology could lead to cost reductions in biofuel and biochemical production, potentially improving Gevo's competitive position. The partnership with LG Chem for scaling up the process adds credibility and could accelerate commercialization. However, investors should note that commercial viability and market adoption remain uncertain. The impact on Gevo's financials is not immediate and the company still faces challenges in scaling up and competing with established fossil fuel-based processes. This patent strengthens Gevo's intellectual property portfolio, which could be valuable for future partnerships or licensing opportunities.

Chemical Engineer

Gevo's ETO process represents a significant technical advancement in biofuel and biochemical production. The ability to produce 3 and 4 carbon olefins directly from ethanol in a single step is a game-changer. This could potentially reduce the number of process steps, lowering both capital and operating costs. The improved selectivity and control are important for producing high-quality end products. The process's flexibility to optimize for either fuels or chemicals is another strong point, allowing Gevo to adapt to market demands. However, scaling up from lab to commercial scale often presents unforeseen challenges. The energy efficiency claims need to be validated at larger scales to truly assess the process's competitive advantage over existing technologies.

Market Research Analyst

The granting of this patent strengthens Gevo's position in the growing sustainable fuels market. With increasing pressure on industries to reduce carbon footprints, demand for bio-based alternatives is likely to rise. The ETO process's potential to produce sustainable aviation fuel (SAF) is particularly noteworthy, given the aviation industry's push for greener alternatives. The partnership with LG Chem for chemical applications broadens the potential market impact. However, market adoption will depend on the cost-competitiveness of the end products compared to fossil-based alternatives. The success of this technology could disrupt traditional petrochemical supply chains, but it's important to note that such transitions typically occur slowly. Investors should monitor progress in scaling up the technology and any announcements of commercial agreements or partnerships in the coming months.

Next Generation Process with Potential to Lower Capital and Operating Costs for Producing Chemicals, SAF and Other Fuels

ENGLEWOOD, Colo., Sept. 16, 2024 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is proud to announce the U.S. Patent and Trademark Office has granted to Gevo, a patent for its ethanol to olefins (“ETO”) process. This patent further cements Gevo’s position as a leader in intellectual property (“IP”) surrounding bio-based renewable fuel and chemical production from alcohols.

Gevo has been awarded U.S. Patent No. 12,043,587 B2 covering the ETO process. This patent protects the process of using certain proprietary catalyst combinations for converting ethanol into olefins. This process is designed to give best-in-class cost and yields of olefins from ethanol, with improved energy efficiency, which is intended to help to reduce the cost of biofuels and biochemicals.

Olefins with three or four carbon atoms are key building blocks to produce fuels or chemicals. Existing technology makes ethylene, a 2-carbon olefin, from ethanol, and then additional steps are needed to produce the larger and more useful olefins, such as three or four carbon olefins (e.g., propylene and butenes). This patent protects Gevo’s ETO process, which makes three and/or four carbon olefins in addition to ethylene from ethanol in a single step with a high degree of selectivity and control, which is critical for success. The ETO process is expected to reduce energy and capital cost because of the fewer unit operations involved; and reduce complexity of the process design. The ETO process technology can be optimized to produce fuels and/or chemicals, the latter of which has been licensed to LG Chem, Ltd. (“LG Chem”) under the previously disclosed joint development agreement. Together Gevo and LG Chem are working to scale up the process for chemicals.

“We’ve been pursuing simplified alcohol to olefin technology since 2007, understanding that low cost, robust processes to make the right olefins is the critical step to make jet fuel, gasoline, and plastics. It’s our mission to make the transition practical from fossil-based to renewable fuels and chemicals,” says Dr. Pat Gruber, CEO of Gevo. “Key to making the transition are low-cost, drop-in products. The ETO process technology covered by this patent is expected to be a step-change improvement in capital cost and energy efficiency to produce biofuels, such as sustainable aviation fuel (“SAF”), or chemicals, such as propylene, from ethanol.”

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 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.

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 agreement with LG Chem, Ltd., whether the ETO technology will be commercialized, the benefits that might accrue as a result of the granted patent, 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 because 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
Lindsay Fitzgerald
Senior Vice President of Public Affairs
PR@gevo.com

FAQ

What is the new patent Gevo (GEVO) received for its ethanol to olefins process?

Gevo received U.S. Patent No. 12,043,587 B2 for its ethanol to olefins (ETO) process, which covers the use of proprietary catalyst combinations to convert ethanol into olefins.

How does Gevo's (GEVO) patented ETO process differ from existing technology?

Gevo's ETO process can produce three and four carbon olefins from ethanol in a single step with high selectivity and control, whereas existing technology typically produces ethylene first and requires additional steps for larger olefins.

What are the potential benefits of Gevo's (GEVO) new ETO process?

The ETO process is expected to reduce energy consumption, capital costs, and process complexity in the production of biofuels and biochemicals, potentially leading to more cost-effective sustainable aviation fuel (SAF) and other renewable products.

Has Gevo (GEVO) licensed its new ETO technology to any companies?

Yes, Gevo has licensed the ETO process technology to LG Chem for chemical production under a previously disclosed joint development agreement.