Gevo, Inc. · NASDAQ:GEVO
Gevo — Investor Presentation (March 2020)
39 slides from Gevo's investor presentation, Mar 4, 2020
Slide 1: Overview – Patrick Gruber, CEO, March 2020
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Any statements in this presentation about our future expectations, plans, outlook and prospects, and other statements containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions, constitute forward-looking state
Slide 3: A New Generation of Low Carbon Drop-In Transportation Fuels
A NEW GENERATION OF LOW CARBON DROP-IN TRANSPORTATION FUELS Target Markets/Products (>800 BGPY) Raw Materials a " ¥ \ 7 we “SPN |. production technologies work + Products work Gasoline (Isooctane) i ze fe) + Markets are developing + We are selling products ‘Oxygenated Blendstocks for Gasoline * Targ
Slide 4: Business Summary
BUSINESS SUMMARY The Problem: + Fossil fuels emit fossil greenhouse gasses (GHGs) *+ Companies want to mitigate lability + Governments want to reduce GHG emissions + Consumers care about pollution and want GHGs addressed The Solution: * "Decarbonize.” Lower the carbon footprint of fuels by replacing
Slide 5: Overview of Gevo
OVERVIEW OF GEVO Business Overview + Headquarters: Englewood, CO + Founded: 2005 + Employees: ~50 (20 in Colorado, 30 in Minnesota) + 20 Contractors Proprietary technology position (patents and know-how) for the production of isobutanol and hydrocarbon fuels and chemicals + Technologies proven to wo
Slide 6: Other Relevant Information
OTHER RELEVANT INFORMATION + Cash — $20.9 Million (9/30/2019) + Debt — 2020/2021 Notes (Whitebox): $14.4 million principal (1/10/2020) + Common Shares — 13.4 million (9/30/2019) + Warrants — 54,989 Warrants outstanding @ weighted avg of $154/share (9/30/2019) + Current Analysts —Amit Dyal, HC Wainwr
Slide 7: The Problem: We Are Going to New Heights of GHGs
THE PROBLEM: WE ARE GOING TO NEW HEIGHTS OF GHG’'S, AND IT LIKELY ISN'T A GOOD THING + Burning of fossil based carbon ALWAYS leads to an increase of carbon dioxide in the atmosphere + Carbon dioxide has doubled since the age of fossil fuels + Levels will continue to rise unless we change to reduce/e
Slide 8: We All Have a Problem, and It Can't Be Ignored
WE ALL HAVE A PROBLEM, AND IT CAN’T BE IGNORED
Slide 9: Climate change headlines
Le, 2019, Closing out the Wi de - New Pee 9 coe fis Fi Cf z ‘ INANGE IMATE Cry sy More Americans CLIMATE CHANGE IS il qt Is wy are alarmed by RAVAGIN THE ARCTIC. an Ra ORT FINDS-neteriaitan
Slide 10: Market Potential Is Liquid Transportation Fuels...
MARKET POTENTIAL IS LIQUID TRANSPORTATION FUELS... Rate of adoption will be driven by price and financing WORLD WIDE 955 BGPY US TOTAL 229 BGPY Disttiate Gasoline Distillate 42% Gasoline det Fuel 3% Kerosene Jet Fuel 1% 11% What will the penetration rate be?
Slide 11: ..And Will Be Around a Long Time
..AND WILL BE AROUND A LONG TIME Transportation sector consumption (by fuel) (AEO2020 Reference case) quadrillion British thermal units 30 25 20 15 10 jet fuel electricity other 0 2010 ©2020» 2030 2040S 2050 Light-duty vehicle sales by fuel type (AEO2020 Reference case) millions of vehicles 18 16 uf
Slide 12: US Greenhouse Gas Emissions: Fossil Carbon in the Atmosphere Increasing
US GREENHOUSE GAS EMISSIONS, THE PROBLEM: 2017 FOSSIL CARBON IN THE ATMOSPHERE INCREASING " coma i Transgrtation : ; UNO USECHANGE — narunaL cas 2% gevo a LAND SINK ‘OCEAN SINK =o : rig i 2017 Transporation on
Slide 13: The Solution: We Actually Can Address It...
THE SOLUTION: WE ACTUALLY CAN ADDRESS IT... Umousecimmce NATURAL GAS 2% gevo’ 35GT ELECTRICITY & ‘TRANSPORTATION FUELS, t 340GT LAND SINK (OCEAN SINK a NATURAL GAS + Eliminate burning of fossil- based carbon in production of electricity and transportation fuels + Use forestry and agriculture to capt
Slide 14: We Are Going After the Whole Gallon with an Ultra-Low Carbon Score
WE ARE GOING AFTER THE “WHOLE GALLON” WITH AN ULTRA-LOW CARBON SCORE Paradigm Shift + Drop-in + Works with all types of engines + Works with all ages of vehicles + Compatible with fuel infrastructure (tanks and pipelines) FOSSIL BASED YGENERATION ——_GEVO- 2"° GENERATION + Easy to adopt BIO-BASED BIO
Slide 15: Our Technology Leverages the Best of Biology and Chemistry
OUR TECHNOLOGY LEVERAGES THE BEST OF BIOLOGY AND CHEMISTRY a tia “> oats Carbohydrate (sugars) Isobutanol © 1 (gasoline) 2 Proprietary Yeast
Slide 16: Replace the Carbon Source and Energy Source to Eliminate GHGs from Fuels
REPLACE THE CARBON SOURCE AND ENERGY SOURCE TO ELIMINATE GHG’S FROM FUELS 2
Slide 17: Low Carbon Cycle
>2 Ibs. of CO2 sequestered per gallon’, but could be much higher according to recent reports Cc ale FERTILIZER LOW CARBON CYCLE MIDWEST USA SUSTAINABLY GROWN " y 10 Ibs. of protein/feed per WIND PowER gallon of hydrocarbon fuel BIOFUEL PLANT DAIRY, BEEF, POULTRY & PIG TO FOOD. PROTEIN AND FEED 100%
Slide 18: Cellulosic Feedstocks Are Enabled
CELLULOSIC FEEDSTOCKS ARE ENABLED Enables Potential Global Scale _Z2Reomnatix LEAF a Wood, Forestry Residues, Stash, Stover RESOURCES jams, Combined Heating — ‘& Power Plant Biofuel Plant \ P|
Slide 19: We Can Get to Very Low Carbon Footprints
WE CAN GET TO VERY LOW CARBON FOOTPRINTS PETROWJET soy tue And get paid for it coe oomsrue COPEMSSIONS CAPTURE SOIL ‘CARBON ‘The carbon footprint has potential to be driven to negative with agricultural practices or with more renewable natural gas (RNG)
Slide 20: Hydrocarbon Fuels: How to Drive the GHG Footprint Down and Even Negative
HYDROCARBON FUELS: HOW TO DRIVE THE GHG FOOTPRINT DOWN AND EVEN NEGATIVE! And produce protein too — Agriculture improvements are ‘carbon wood, practical and being done AllFarms Reduced Til NoTH Capture straw, Foxstfuel “2017 Farms Fame Fame resdues + We expect to be able to meet we RED II, RSB, and
Slide 21: Certification and Tracking
CERTIFICATION AND TRACKING [| ]BLOCKSIZE CAPITAL + ISCC PLUS certification + Partnered with Gevo to enables Gevo to validate establish a blockchain the responsible nature of technology to track its liquid transportation sustainability fuels and to highlight the traceability, qualifying that such fue
Slide 22: We Can Use Carbohydrates from Many Sources
WE CAN USE CARBOHYDRATES FROM MANY SOURCES 1 BGPY requires about 3 Million Tons of Feedstock for jet (at a minimum)*
Slide 23: How to Achieve Profitability and Get on the Path to a Multi-Billion Dollar Business
HOW TO ACHIEVE PROFITABILITY AND , GET ON THE PATH TO & L A MULTI-BILLION ee EW DOLLAR BUSINESS AN :
Slide 24: The Aviation Industry Has an Opportunity... and a Problem
THE AVIATION INDUSTRY HAS AN OPPORTUNITY... ee AND A PROBLEM - il No Langer Gt Fee Ride on Carbon Erion They are expecting to experience strong growth... oo but they have promised to hold GHG emissions flat from 2020 onward World Jet Fuel Demand Year over Year Projected Jet Fuel Demand Growth: ~38GP
Slide 25: Gevo Jet Fuel
GEVO JET FUEL
Slide 26: Fly Green: Products Work, We Are Building Experience
aX FLY GREEN Fueled by Geo PRODUCTS WORK, WE ARE BUILDING EXPERIENCE J-—— FARNBOROUGH AIRPORT | vinis) DB, Ed senses wey om as xoneavan &¥ airbp Somancnc Hl CHICAGO O'HAR! is 43 pa. AIRPORT A Vrausroi | RePewerstand sree bl we @ Si Bp caurex FARMINGDALE @ £ pa NEWYORK : 9 . VAN NUYS AIRPORT = ie
Slide 27: We Intend to Replace the Whole Gallon of Gasoline (Ultimately)
WE INTEND TO REPLACE THE “WHOLE GALLON” OF GASOLINE (ULTIMATELY) Isooctane (the hydrocarbon) is the major component of gasoline cow catbonendeisaa (low sulfur, low + We believe we have the only proven technology to produce it from aromatics, low olefins) renewables wt gevo + No particulates, no sulf
Slide 28: Isooctane in Performance Fuels
ISOOCTANE IN PERFORMANCE FUELS Start with high value niche Up to 4MGPY under take-or-pay contract Haltermann FU Carless gevo
Slide 29: Isobutanol as a Gasoline Blendstock
ISOBUTANOL AS A GASOLINE BLENDSTOCK Isobutanol delivers better properties than other renewable alcohol blendstocks + Higher energy (potential for more miles per gallon) + Less corrosivity (less wear and tear on certain types of engines) Ethanol Free: ~7BGPY* Market Size: ~140 BGPY* Focus is to devel
Slide 30: We Could Be Cost Competitive with Commodity Petro-Based Fuels
WE COULD BE COST COMPETITIVE WITH COMMODITY PETRO-BASED FUELS AND OTHER HYDROCARBON PRODUCTS RINS tes fandates voter + Use the carbon value to offset the required price of our products + Carbon value is more reliable because of LCFS and EU RED policies — Debt providers have indicated that they are m
Slide 31: Renewable Hydrocarbons Should Eventually Be Less Expensive
RENEWABLE HYDROCARBONS SHOULD EVENTUALLY BE LESS EXPENSIVE Takes a combination of oil we are near the cross-over for certain markets. Price Potential Renewable Hydrocarbon Fuel Net Price* Time
Slide 32: Getting to Economies of Scale
Getting to Economies of Scale Process and products proven to work
Slide 33: Making Products
MAKING PRODUCTS 1 Million Liter Hydrocarbon Production* Ethanol and IBA Fermenter Silsbee, TX Production - Luverne, MN
Slide 34: Current Production & Products
CURRENT PRODUCTION & PRODUCTS Products Sold we wR 24394
Slide 35: Achieving Economies of Scale at the Luverne, MN Site
ACHIEVING ECONOMIES OF SCALE AT THE LUVERNE, MN SITE IBA AND HYDROCARBONS (JET AND ISOOCTANE) 10-12 MGPY Hydrocarbon Plant New IBA Fermenters Biogas from Gevo Energy ‘Anaerobic Digestion Shockwave Dry Frac : Hi-Protein 4 Bran Feed IBA JET 10 06s Feed 3.5 MGP 4 chan lon bs yz. = 3-5 MGPY ~10-17 MGPY
Slide 36: Greater Than $500M of Revenue Under Take-or-Pay Contracts
GREATER THAN $500M! OF REVENUE UNDER TAKE-OR-PAY CONTRACTS aig = ADELTA SAS PD Gi e) TOTAL City of Seattle The focus is project financing backed by these contracts
Slide 37: Business Model Is Evolving to Build, Operate, and Maintain
BUSINESS MODEL IS EVOLVING TO “BUILD, OPERATE, AND MAINTAIN” Our contracts are growing faster, demand is happening faster, creating opportunity sooner + Gevo Role ~ Project developer — Technology licensor —Plant operator — Maintainer — Business developer (Signing off-take agreements with customers a
Slide 38: Plan for Revenue Growth for Gevo Products
PLAN FOR REVENUE GROWTH FOR GEVO PRODUCTS! Step 1 2021 Step 2 Earliest could be 2023/2024 Step 2a Targeting 2023/2024* 24 Production Site TBA plant with, 50 MGPY hydrocarbons fle oied pode end and ven pink fret eae seers Luveme pant TBA, et Fuel, Soles ——=Revenue#(Suid)——Salez—C Revere (Su) poasncrr
Slide 39: Vision: Whole Gallons, Net Zero
Vision: “Whole Gallons, Net Zero”