|Gevo, Inc., and Praj Industries Ltd signed a memorandum of understanding (MoU) to become a Gevo licensee for producing renewable isobutanol at sugarbased ethanol plants. Under the MoU, Praj will undertake to license up to 250 million gallons of isobutanol capacity for sugar-based ethanol plants over the next ten years. Gevo will market the isobutanol produced by Praj’s sublicensees. Praj will also contribute process engineering and equipment services to expand isobutanol capacity at Gevo’s plant in Luverne, Minn, as well as to improve yields and optimize energy consumption at the facility.
“Praj has conducted significant diligence on Gevo’s corn starch-based isobutanol technology and we believe in the technology,” said Pramod Chaudhari, Executive Chairman of Praj. “Isobutanol has a substantial market opportunity given that isobutanol is a high performance biofuel that can solve many of the issues of 1st generation biofuels. It also enables a true biorefinery model wherein a number of specialty chemicals and bio-products can be produced using isobutanol as a feedstock. We look forward to creating a new opportunity for 1st generation sugar-based ethanol plant owners, as well as accelerating the use of 2nd generation cellulosic feedstocks to produce isobutanol.”