Gevo, Inc. · NASDAQ:GEVO
Gevo — Conference Presentation (June 2011)
39 slides from Gevo's conference presentation, Jun 29, 2011
Slide 1: Gateway to Renewable Chemicals and Hydrocarbon Fuels: Corporate Update
Exhibit 99.1 Gateway Corporate June 29-30, toUpdate Renewable 2011 Chemicals and Hydrocarbon Fuels
Slide 2: Safe Harbor Statement
Safe Certain Litigation competitiveness feedstocks; and statements Investors revise Although expressed relating K This 2neither © and volatility 2011 Harbor presentation these other an statements toare Gevo, we or Reform offer the of our statements, filings Statement implied cautioned believe histor
Slide 3: Isobutanol platform: feedstocks, molecule and markets
Existing Feedstock Sugar Corn Today Agricultural Future Retrofit Wood Proprietary Chemical-grade High 41 “Off Isobutanol Chemicals Polyesters Propylene PMMA Rubber Fuels Gasoline Jet ~1 Diesel 3Source: ©Bgpy trillion fuel 2011 the octane, (40 (927 Cane ICIS, shelf” Markets demand (specialty Gevo, Bg
Slide 4: Addressable markets for isobutanol
Addressable SOLVENTS RUBBER >$160 BIOJET Planned Market GASOLINE >$125 >$5 MARKET Regulatory: 4Source: © 2011 BILLION BILLION Use: ICIS, completion Gevo, AND (specialty) ASTM No EPA Markets 1Immediate Integrated BLENDSTOCKS CMAI, step MARKET INITIAL approval LUBRICANTS Inc. Approved TOTAL MARKET req
Slide 5: Natural gas market shift and C4 shortage
Meeting Fundamental Nat. Market Switch $25 ($/MMBTU) 1990 2015: Natural Source: 5Oil $20 gas 1995 $11/MMBTU to participants Gas EIA © $15 expected Market NGL 2011 2000 Annual $10 market crackers Gevo, Demand: 2005 $5 toagree $0 difference Energy continue shifts 2010 Inc. expected and Four provide 20
Slide 6: Shale gas shift and C4 shortage
Meeting Fundamental Nat. Market Switch Shell DOW Announced William 6–“Shale CEO gas -Chem. June gas at to participants Cos. © expected Market CMAI NGL 2011 isworld 2011 positioned market - April March crackers Gevo, Demand: Houston to scale agree continue 2011 shifts 2011 Inc. ethylene to expected a
Slide 7: Shift to lighter feedstocks reduces C4 supply
Meeting Fundamental Nat. Market Switch ~81% Expected Historical Naphtha Ethylene NGLs 7Source: gas shrink to participants Adapted © expected Market &Propylene NGL 2011 Gas in market crackers C4s Oil Gevo, Demand: from toagree C4s produced continue shifts CMAI Inc. expected Pyrolysis and Four provide
Slide 8: Isobutanol: building a gateway to hydrocarbon building blocks
87Isobutanol: We Green Xylene Toulene Benzene Butadiene Butylene Propylene Ethylene Plastics Fuels Solvents believebuilding Pharmaceuticals Rubber building (8 /Foams (7 ©(6 (2 A Fibers Gateway (4carbons) (4 (3 2011 blocks carbons) isobutanol carbons) carbons) carbons) /blocks Gevo, Fibers Molecule f
Slide 9: Petrochemical industry hydrocarbon map
Petrochemical Hydrocarbon Steam Ethylene Olefins Pyrolysis Diesel Xylenes Toluene Benzene Aromatics Naphtha Chemicals EDC MTBE Poly(vinyl Polyethylene Propylene Polyester Butadiene-Styrene Polybutadiene Polyacrylonitrile Polypropylene Polyisobutylene Polyols Acrylonitrile ABS Polyesters Ethyl Cumene
Slide 10: Isobutanol: gateway to green chemicals and fuels
Isobutanol: Hydrocarbon CO2+ Diesel Chemicals EDC Ethyl Cumene Acrylonitrile Cyclohexane MTBE Phenol Polyols Adipic Styrene Terephthalic Poly(vinyl Polyethylene Butadiene-Styrene Polybutadiene Polyacrylonitrile Polypropylene Polyisobutylene Polyester ABS Polyesters Steam Pyrolysis Butadiene Butylene
Slide 11: Historical cost and price volatility, bio vs petro
Historically Expected Difference (comparison 9.00 USGC Petro-IBA Bio-IBA Avg. Butene (Month US$ 0.00 0.50 1.00 1.50 -1.50 Bio-Butene 2006 Petro-Butene St. Source: 11 © Dev.: 8.00 -0.50 1.00 /diff. 2011 2010 Gallon Gallons IBA Cost to EIA, cost 8.7% 18.0% to 7.00 0.50 =Month -1.00 cost Gevo, inSale $
Slide 12: Maximizing isobutanol yield and corn feedstock economics
Gevo 1Maximizing 2.1 18 Isobutanol Animal Example $/bu Less: Net Gal/bu Feedstock $/MT Sensitivity Corn Note: 12bushel lbs ©gallons Carbohydrate starch corn Cost 2011 Animal plans Gevo Fermentable yield Feed Calculation $6.50 contribution cost ($/bu) Gevo, Table to expected value 2.1 feed produce ($
Slide 13: Protected market: oil to starch spread
Protected Market LOWER Oil $445 ($60/bbl) Starches $246 ($5.50/bu MT 1.8 Addressable $10 Size Note: Calculation 13 © 2.3 (MT) Ratio Bof $668 $291 2011 The >$40 3.0 Gevo opportunity (MT) OIL ($90/bbl) on corn) (oil/starch) lowest Gevo, $1,002 $335 shortcuts: BMarkets the market CURRENT >$3,000 ($6.50
Slide 14: Carbon reduction and incremental RIN value
Low Projected (Includes 50% Gasoline Isobutanol Source: Expected Note: Incremental 14 © Carbon Reduction 2011 Not EPA, Ethanol to Indirect Lifecycle included w/Green w/Cellulosic Gevo, enable result value Alternative WSP Inc. Isobutanol Land based inEnvironment advanced in Greenhouse Energy $0.90+/g
Slide 15: Risk factors and mitigation
Actively New Economic Capital Scale Government Limited Single RISK Replacing Anticipated Retrofit Use No Platform 15 ©Mandates an Industrially Molecule 2011 Up FACTOR MITIGATION Market already Intensity Existing Feedstock Managing Molecule / Performance lost Robust Gevo, Highest Subsidies orDependen
Slide 16: Proven leaders commercializing industrial biotechnology
Proven Patrick CEO Mike EVP-Technology Christopher EVP-Business Mark David CFO EVP-Upstream Gevo 16 © 2011 Slaney staff Smith Glassner, Black Gruber, Leaders has Gevo, Ryan, over Development Development Ph.D. in Ph.D. Inc. Commercializing Ph.D. 400 years of directly Industrial relevant Biotechnology
Slide 17: Isobutanol economics targets
Economics (MGPY) Isobutanol Target 2012 210-20 3.20-3.50 24-26 13-15 na The able 1748-10 ©6projected to9 2013 2011 80-100 24-26 15-18 Plants Gross EBITDA reach 13-15 3.05-3.40 Target Gevo, 2014 Remain 24-26 Margin our in ~350 growth 15-18 at Margin 2015 targeted Inc. Production Selling Year 24-26 ~2
Slide 18: Technology
il “" Technology
Slide 19: Commercial yield enabled by proprietary yeast
Commercial Enables 92% Yield Achieved Target Gevo’s 19 Sugars Isobutanol © 94% 2011 Concentration Proprietary Large 105 Gevo, Targets g/l107 Scale, Inc. Yeast Achieved Rate Cost g/l 2 Effective g/l/h 2 g/l/h Fermentation
Slide 20: Proven technology: demo and commercial plants
Proven Complete 10,000X 100 Mini Demo Commercial 20 ©GPY1 Plant/Denver, 2011 Plant/St. Technology 18X Complete Gevo, MGPY Plant Joseph, Inc. #1/Luverne, 18 CO Ready InMGPY Progress MOforStarted-up Commercialization MNPlanned in Sept to start-up 2009 1st half of 2012
Slide 21: Low-cost plant retrofit with GIFT technology
Low Plant 22 50 100 Gevo’s Water Isobutanol BEFORE 21 AFTER MGPY ©MGPY Cost 2011 Projected Integrated Luverne, Retrofit ~$0.77/gal ~$0.48/gal Gevo, ~$0.40/gal Capacity Inc. Fermentation Expected MN RetrofitTechnology Cost (GIFT®)
Slide 22: Expected hydrocarbon yield and capital cost comparison
Expected Hydrocarbon YIELD 40 Algae TOTAL Finished Downstream $9.15 $5.60 Farnesene $1.30 $3.75 (1) Biomass-Derived 335-355. Capital 22 66 © Process 2011 85 $5.80 Oil costs CAPITAL Hydrocarbon: Hydrocarbon 88 Rude, Highest Catalytic Algae Gevo, yields 108 capital based Gallons/MT MA 101 Oil Inc. Oxy
Slide 23: Business plan backed by strong IP portfolio
Business PATENTS TECHNOLOGY Synthetic GIFT™ Products Note: 23 © 2011 Asand and of Plan Biology AND Gevo, May Process Chemistry Margins APPLICATIONS 12, Inc. and2011 28Yeast Backed 40 204By Strong IP Portfolio
Slide 24: Market Detail
il “" Market Detail
Slide 25: Solvents addressable molecule market
Solvents Addressable Molecule Market >$5 Lower Isobutanol $4.75 Regulatory None End Distributor Existing Specification Qualifying Source: 25 ©Billion users 2011 Needed -cost $5.25/gallon Drivers Price ICIS. butanol Market: Gevo, Gevo Approvals and (butanols) Market Point set Asvolatility users, isob
Slide 26: Rubber/lubricant addressable molecule market
Rubber/Lubricant Addressable Molecule Reduce Increase Market Regulatory None Isobutanol End Various Proven Developing Source: 26 ©users 2011 Needed isobutanol Drivers Price price CMAI, LXS supply Isobutylene Conversion Gevo, Approvals commercial Market Point Customers volatility EIA. certainty Inc.
Slide 27: Jet fuel addressable molecule market
Addressable Molecule Intense Economic Certification Isobutanol A Jet In USAF Planning Engineering Piloting Market Source: 27 Top progress © Market: Process End 2011 5Tier international Drivers Price Pull User USDA, US for Kerosene alternative Conversion Gevo, Engineering 2Drop-in Refiner Market manu
Slide 28: Specialty gasoline blendstocks addressable market
Specialty Addressable Molecule Biofuel Drop-in Market Regulatory EPA Fuel Gasoline Refinery Source: .28 ©approved Manufacturers 2011 Drivers Price Mandates, OPIS, Fuel, specific blenders Gasoline Isobutanol Gevo, Approvals Market Point Potential The forblend Inc. gasoline Low Ethanol Blendstocks $3.
Slide 29: Appendix A: Redfield Energy Joint Venture
AppendixEnergy Redfield gevo A: Joint Venture
Slide 30: Redfield Energy plant overview
Redfield Capacity Technology Estimated Rail Debt, Redfield, Not Bushels 1,000,000 <1,000,000 5,000,000 10,000,000 15,000,000 20,000,000 -.58 -.57 -.52 -.47 -.42 -.37 -.32 -.27 -.22 -.17 -.12 -.07 -.02 .04 .09 .14 .18 2010 Corn 30 © to or Estimated or to Burlington basis Corn Basis 2011 net .08 .13 .
Slide 31: Redfield exceeds retrofit criteria
Exceeds CRITERIA Technology New, Members Great Low-Cost Averaged Industry Low (1) 31 © Asleverage 2011 high corn ofTarget Leader May required $0.26/gal Producer efficiency Gevo, basis REDFIELD Leader 2011. Criteria last Inc. toICM ethanol Cost 24 plant deliver mos(1) technology to produce EBITDA 55%
Slide 32: Transaction highlights
Transaction Expect JOINT No EXISTING REDFIELD Contribute 100% 32 © economic 2011 ofVENTURE economic isobutanol retrofit Gevo, facility MEMBERS Highlights ENERGY interest capital interest Inc. production until LLC. until isobutanol isobutanol to beginproduction Q4production 2012 begins begins
Slide 33: Strong joint venture economics for Gevo
Transaction Strong Gevo JOINT Isobutanol gevo Implied 2.5 EXISTING REDFIELD Expect Note: 33 © year 2011 expects Gevo first VENTURE increase $/gal payback cash Gevo, JV MEMBERS current Highlights ENERGY “buy-in” todeal flow in improve on Inc. margin forward economics retrofit split LLC. valuation ter
Slide 34: Appendix B: Additional Slides
Appendix B: Additional Slides gevo
Slide 35: Key milestones
Key© Scaled Proved Non-binding Purchased 2011 Begin Complete Announce Engineering 1st 2012 2nd Commercial By 35 end Cellulosic Half Half Milestones 2011 retrofit up Yeast of Plant GIFT™ year 1st customer Gevo, for sales Offtake Commercial of Hydrocarbons Commercial estimated 2plant Luverne Inc. join
Slide 36: Isobutanol solves stress corrosion cracking issue
Isobutanol 2.00 Stress No Gevo 36 ©Stress mm 2011 has Corrosion completed Corrosion Solves Gevo,Cracking Inc. Biofuel Cracking preliminary Corrosion (SCC) (SCC) testing withIssue (12.5% E10 with Isobutanol) DNV (Det Norske Veritas) on SCC and elastomeric compatibility
Slide 37: Gasoline blended with isobutanol vs ethanol when contacted with water
When Gasoline Isobutanol Ethanol 37 © 2011 contacted blended with Compatible acts blended Gevo, 10% like with Gasoline Inc. Gasoline Water a hydrocarbon; water, with with Infrastructure ethanol with 10%10% itin Water stays E10 Water in migrates the gasoline into water, even when changing contacted t
Slide 38: Future feedstocks: cellulosic sugars
Future Agricultural Wood JDA Gevo The Isobutanol Cellulosic 38 ©ICM for 2011 has Feedstocks cellulosic Demo an Sugar Isobutanol sugars Gevo, Residue LOIPlant exclusive Production to already Inc. yeast and license Yeast islicense Cellulosic Co-located tested thetotechnology atCargill’s Isobutanol lab
Slide 39: Sugar and starch cost comparison
Sugar Cents 40 Net May-11 Mar-11 Jan-11 Nov-10 Sep-10 Jul-10 May-10 Mar-10 Jan-10 Nov-09 Sep-09 Jul-09 May-09 Mar-09 Jan-09 Nov-08 Sep-08 Jul-08 May-08 Mar-08 Jan-08 39 35 ©Starch 2011 30 per Cost 25 lbGevo, Cost Comparison 20 15 (Ct/lb) Inc. 10 5 Dextrose 0 Price (Ct/lb) World Sugar (Ct/lb) Sugar C