Gevo, Inc. · NASDAQ:GEVO
Gevo — Investor Presentation (December 2021)
42 slides from Gevo's investor presentation, Dec 8, 2021
Slide 1: Beyond Net-Zero – December Investor Deck
BEYOND NET-ZERO – DECEMBER INVESTOR DECK December 8, 2021
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Any statements in this presentation about our future expectations, projections, estimates, plans, outlook and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions, constitu
Slide 3: Changing What Is Possible: Creating a Low-Carbon Future
CHANGING WHAT IS POSSIBLE: CREATING A LOW-CARBON FUTURE • We intend to transform renewable energy TRANSFORM RENEWABLE sources into a “drop in” fungible ENERGY INTO LIQUIDS hydrocarbons for fuels and chemicals • We intend to manage and HOLD ACCOUNTABLE carbon and sustainability across the whole busin
Slide 4: Drop-in Gasoline, Jet Fuel and Other Hydrocarbons with Net-Zero GHG Emissions
DROP-IN GASOLINE, JET FUEL, AND OTHER HYDROCARBONS WITH NET-ZERO GHG EMISSIONS WHEN BURNED, AND IN THE US LOTS OF PROTEIN TOO High-value Protein (Pet Nutrition/Aquaculture )(1) & Oil Raw Materials Jet Fuel Proven technology in production and product use. Carbohydrates to alcohols to drop in hydroc
Slide 5: Demand Is Increasing: We Better Think Bigger, Sooner
DEMAND IS INCREASING: WE BETTER THINK BIGGER, SOONER 1BGPY by 2030 Contract Portfolio Increasing Market Traction • Large, Growing Portfolio 46 MMGPY ~ 98 MMGPY >1.5 BGPY – Approximately $3 billion(1) in financeable contracts in Planned Capacity of Total Volumes in Total Volumes place Single Gevo C
Slide 6: Recent Press
2% gevo Ea al RECENT PRESS %gevo Axens Gevo Acquires Butamax Patent Estate Gevo adds fundamental patents to its portfolio for the production of renewable Gevo and Axens Ink Alliance for Ethanol-to-Jet Technology and ‘sobutanol and derivative renewable fuel products ‘Sustainable Aviation Fuel Commerc
Slide 7: Billion Gallon Initiative
BILLION GALLON INITIATIVE We are driving to achieve our first 1 billion gallons of capacity and sales by 2030 or earlier We have a first mover and proprietary advantage in the use of carbohydrates to produce drop-in hydrocarbons 7
Slide 8: Gaining Perspective
GAINING PERSPECTIVE It’s the burning of fossil carbon to make electricity, to heat buildings and production processes, and for transportation that generates the vast majority of GHG emissions Electricity demand is going to go up: • 30% of people in the world don’t have access to electricity • Demand
Slide 9: Electricity, Transportation, and Industry Need to Be Primary Targets for GHG Reduction
IN THE US: ELECTRICITY, TRANSPORTATION, AND INDUSTRY NEED TO BE PRIMARY TARGETS FOR GHG REDUCTION—WE NEED TO REPOWER (FASTER) And by creating the right incentives, we can catalyze improvements in agriculture Transportation: Can be eliminated with renewable energy (electricity, green hydrogen, RNG an
Slide 10: Liquid Fuels Are in Our Future…The Question Is How Much?
LIQUID FUELS ARE IN OUR FUTURE…THE QUESTION IS HOW MUCH? Current EIA Projection of Hypothetical Projection Assuming Transportation sector consumption (by fuel) Significant Penetration Of Electrification* quadrillion British thermal units quadrillion British thermal units 30 2019 2019 30 history proj
Slide 11: Burning of Fossil Fuel Releases Fossil Carbon
BURNING OF FOSSIL FUEL RELEASES FOSSIL CARBON Liquid Hydrocarbons are a Terrific Energy Carrier; Infrastructure Already Exists Isooctane (gasoline) Burning to release energy! Carbon Dioxide Water Jet Fuels 11
Slide 12: How to Solve the Energy Dense Liquid Fuels Problem
HOW TO SOLVE THE ENERGY DENSE LIQUID FUELS PROBLEM The inherent energy to do the reverse of burning (connecting carbons together, Process Energy eliminating oxygen, adding hydrogen) Isooctane (gasoline) Requires renewable carbon and renewable energy to achieve Net-Zero Carbon Dioxide To Move Beyond
Slide 13: What Are the Non-Fossil Carbon Feedstock Possibilities?
WHAT ARE THE NON-FOSSIL CARBON FEEDSTOCK POSSIBILITIES? Direct Capture and Carbon Dioxide Conversion Photosynthesis We Believe: • Land should be used first for food/feed • Protein is needed, demand will grow • Byproducts from food/feed should be used to make materials and fuels • The whole supply ch
Slide 14: How We Do the Reverse of Burning in a Sustainable System
HOW WE DO THE “REVERSE OF BURNING” IN A SUSTAINABLE SYSTEM Proprietary Proprietary Isooctane (gasoline) Fermentation Catalytic Technologies Chemistry (GIFT®) Photosynthesis Isobutanol and Processing Carbon Dioxide Carbohydrate (sugars) Water Jet Fuels Proprietary Fermentation Catalytic Ethanol Chemi
Slide 15: Technologies De-Risked
TECHNOLOGIES DE-RISKED Isooctane (gasoline) Isobutanol Carbohydrate (sugars) Jet Fuels Ethanol Fermentation/purification proven with full Hydrocarbon plant in Silsbee, Tx scale system (1 million liter batch size) operating since 2011 15
Slide 16: Net-Zero 1: Being Engineered Now, Expected Startup in 2024
NET-ZERO 1*: BEING ENGINEERED NOW. EXPECTED TO STARTUP IN 2024 One site, Multiple “Off-the-Grid” integrated plants: Mill, Protein, Oil, Chemical and Hydrocarbon Plant VIA Isobutanol Route** Projected EBITDA***: ~$150M/yr (Based on the current scope) Currently doing the FEED work and expected to be N
Slide 17: Example: The Ethanol to Jet Route
EXAMPLE THE ETHANOL TO JET ROUTE The Net-Zero Business Model Applies Animal Feed Protein How to Work with Corn Production Processes Ethanol Plants Low Carbon • Partner Corn • Buy Residual or Protein & Oil Starch Alcohol then Ethanol • Build Greenfield Sorghum Slurry or (If it can be separated Chemic
Slide 18: Net-Zero Product Tailpipe GHG Sources (Base Case)
NET-ZERO 1 PRODUCT TAILPIPE GHG SOURCES (BASE CASE) Why DOE Argonne GREET Model? • Best scientific model • State of the art Tillage Practices Near • Updated regularly to reflect new Net-Zero 1 Site (2) science • Not politicized H2 gCO2e/MJ Net Zero Line Better Land Biogas from Total Carbon Corn iLUC
Slide 19: We Need to Capture Even More Carbon in the Soil
WE NEED TO CAPTURE EVEN MORE CARBON IN THE SOIL SUSTAINABLE AGRICULTURE OFFERS POTENTIAL UPSIDE IN COMBINATION OF RENEWABLE ENERGY IN PRODUCTION Impact of Agricultural Practice on Total Life-Cycle GHG Emissions for Agriculture improvements are Hydrocarbons Burned for Transportation Energy (1) practi
Slide 20: Geological Sequestration to Drive CI Down Even More
GEOLOGICAL SEQUESTRATION TO DRIVE CI DOWN EVEN MORE ILLUSTRATIVE CASE: ASSUMES A NET-ZERO STYLE PLANT AND SEQUESTRATION OF CO2 PRODUCED IN FERMENTATION Impact of Agricultural Practice and Sequestration on Total Life-Cycle GHG Emissions for Hydrocarbons Burned for Transportation Energy (1) (3) CI Sco
Slide 21: Tracking Carbon and Sustainability Across the Business System
TRACKING CARBON AND SUSTAINABILITY ACROSS THE BUSINESS SYSTEM Truck Corn Corn Slurry Fermenta- Rail & Processing Storage Scale Storage & Cook tion Truck Gevo is partnering with Blocksize Capital to establish a blockchain technology for tracking Grower/Carbon Capture Cloud sustainability, building tr
Slide 22: Gevo Global Certifications – Farm Certifications
Purpose of Gevo’s outreach GEVO GLOBAL CERTIFICATIONS – FARM CERTIFICATIONS RSB ISCC RSB certifies that Gevo adheres to the United Nation’s 12 Principles: ISCC PLUS certification enables Gevo to validate the responsible nature of its liquid transportation fuels and to highlight the traceability, qua
Slide 23: Gevo's Alcohol to Jet Production Costs Are at the Bottom of Supply Curve
GEVO’S ALCOHOL TO JET PRODUCTION COSTS ARE AT THE BOTTOM OF SUPPLY CURVE Ranking of proposed/potential SAF suppliers by cash cost of production according to Nexant (no carbon value included) Competitor C Competitor B Competitor A This chart was obtained from a Nexant study commissioned by Gevo to be
Slide 24: Gevo Commercializing Renewable Energy
GEVO COMMERCIALIZING RENEWABLE ENERGY Gevo Northwest Iowa RNG LLC Wind Tower Servicing Gevo’s Description Luverne, MN Plant • 355,000 MMBtu/yr RNG • Multiple dairy farms with over 20,000 milking cows combined • Gas upgrading system to be located adjacent to Northern Natural Gas pipeline • Sell RNG t
Slide 25: Key Information
KEY INFORMATION Cash, Cash Equivalents, Restricted Cash, ~$522 million (9/30/2021) and Marketable Securities Debt ~$67 million (9/30/21) Common Shares Outstanding ~202 million (9/30/2021) 25
Slide 26: Processes Used Today to Make Petrochemicals and Fuels
PROCESSES USED TODAY TO MAKE PETROCHEMICALS AND FUELS Hydrocarbon Fuels Diesel Gasoline • Chemicals, solvents, plastics, and materials are Jet Fuel made from a few “building blocks” Chemicals and Materials Polyethylene • Fuels also are made from the “building blocks” MTBE EDC Vinyl Chloride Poly(vin
Slide 27: We Can Make the Building Blocks from Ethanol and IBA
WE CAN MAKE THE BUILDING BLOCKS FROM ETHANOL AND IBA, THEN MOST CHEMICALS AND FUELS CAN BE MADE COST-EFFECTIVELY IF CARBON VALUE IS TAKEN INTO ACCOUNT Hydrocarbon Fuels CO2 + Diesel Gasoline Jet Fuel Chemicals and Materials Polyethylene MTBE EDC Vinyl Chloride Poly(vinyl cloride) Ethylene Oxide Ethy
Slide 28: For Additional Information About Gevo
Purpose of Gevo’s outreach FOR ADDITIONAL INFORMATION ABOUT GEVO These short videos explain more about Gevo, our process, business system, and how we think about sustainability NET ZERO 1 (1:52): https://vimeo.com/540736374 PAST Gevo – Solving Energy (2:00): https://vimeo.com/531083659 Working Towar
Slide 29: Appendix
APPENDIX gevo 29
Slide 30: Gaining Perspective and Framing the Problem
Gaining Perspective and Framing the Problem
Slide 31: Gaining Perspective: We Need More Renewable Energy Sources
GAINING PERSPECTIVE: WE NEED MORE RENEWABLE ENERGY SOURCES Source: OurWorldinData.org 31
Slide 32: Enormous Total Addressable Market
ENORMOUS TOTAL ADDRESSABLE MARKET Even with the most optimistic projections of the adoption of EV, fuel cells, etc., the need for hydrocarbons will still be very large. We should de-fossilize the remaining gallons (1) Source: BP Energy Outlook 2020. Reflects Business-as-usual scenario. (2) Based on
Slide 33: Eliminate Fossil Based Energy and Capture Renewable Carbon
ELIMINATE FOSSIL BASED ENERGY AND CAPTURE RENEWABLE CARBON GEVO’S BUSINESS SYSTEMS, FROM RAW MATERIALS TO RENEWABLE FUELS, EXEMPLIFIES THE CIRCULAR ECONOMY IN ACTION Driving the Life-cycle GHG’s Emissions of Jet, Fossil GHG Emissions Gasoline, Diesel and 100g/MJ CO2 Emissions Chemicals to Net-Zero a
Slide 34: Thinking About Combustion Engines: Eliminating Tailpipe Emissions on a Full Life Cycle Basis
THINKING ABOUT COMBUSTION ENGINES: WHAT IF WE COULD ELIMINATE THE TAILPIPE EMISSIONS ON A FULL LIFE CYCLE BASIS? Cars in this example, but same concept principles apply to jet fuel and diesel fuel Lithium Battery Other Manufacturing Fuel Related Emissions Source: ICCT, “Effects of battery manufactur
Slide 35: If We Use a Net-Zero Fuel, It's Conceivable!
IF WE USE A NET-ZERO FUEL, IT’S CONCEIVABLE! Lithium Battery Other Manufacturing Fuel Related Emissions Source: Adapted from ICCT, “Effects of battery manufacturing on electric vehicle life-cycle greenhouse gas emissions”, Feb 2018 by eliminating the tailpipe GHG emissions to make a point. 35
Slide 36: Improving Agriculture & Putting Nutrition into the Food Chain
IMPROVING AGRICULTURE & PUTTING NUTRITION INTO THE FOOD CHAIN Sustainable Agriculture Sparks the Whole Circular Economy Improved Yield • Nutrition first, Gevo will produce more protein products than fuel products based on tonnage! • Help farmers succeed, growing their operations and employing more p
Slide 37: Improve Agriculture, Generate More Protein and Capture Soil Carbon
WE SHOULD IMPROVE AGRICULTURE, GENERATE MORE PROTEIN AND CAPTURE SOIL CARBON, WHILE IMPROVING OVERALL SUSTAINABILITY Protein and oil are particularly useful in the food chain. Land Use Has Stayed Relatively Stable, While Yields have Removing carbohydrates adds value to the protein. Dramatically Impr
Slide 38: Improve Agriculture, Generate More Protein and Capture Soil Carbon Across the World
WE SHOULD IMPROVE AGRICULTURE, GENERATE MORE PROTEIN AND CAPTURE SOIL CARBON, WHILE IMPROVING OVERALL SUSTAINABILITY ACROSS THE WHOLE WORLD Other parts of the world are 30-40 years behind the US. We should help them produce more with modern technology. (1) USDA Feed Grains: Yearbook Tables. May 2021
Slide 39: Lots of Interrelationships to Consider When Thinking About Sustainability
LOTS OF INTERRELATIONSHIPS TO CONSIDER WHEN THINKING ABOUT Clean SUSTAINABILITY Sanitation Water Food and Human Nutrition Clothing Health Pollutants Trace chemicals Greenhouse Hormone mimics Gasses Energy Heavy Metals Etc Heating Cooking Food Storage Transportation Production of Goods Services 39
Slide 40: For Additional Information About Gevo
Purpose of Gevo’s outreach FOR ADDITIONAL INFORMATION ABOUT GEVO These short videos explain more about Gevo, our process, business system, and how we think about sustainability NET ZERO 1 (1:52): https://vimeo.com/540736374 PAST Gevo – Solving Energy (2:00): https://vimeo.com/531083659 Working Towar
Slide 41: Forecast Citations: Global Forecasts
FORECAST CITATIONS: GLOBAL FORECASTS - IEA - IEA (2020), World Energy Outlook 2020, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2020 - Exxon - ExxonMobil. 2019. Outlook for Energy: A Perspective to 2040. https://corporate.exxonmobil.com/- /media/Global/Files/outlook-for-energy/2019-O
Slide 42: Forecast Citations: US Forecasts
FORECAST CITATIONS: US FORECASTS - New York Times - Plumer, B., Popovich, N. and Migliozzi, B. March 10, 2021. Electric Cars Are Coming. How Long Until They Rule the Road?. The New York Times. https://www.nytimes.com/interactive/2021/03/10/climate/electric-vehicle- fleet-turnover.html. - Projections