April 2 (Renewables Now) - US biofuels company Gevo Inc (NASDAQ:GEVO) has turned to investment bank Citigroup Inc (NYSE:C) for assistance in exploring financing for its activities, it was announced on Thursday.
Citigroup Global Markets Inc will help Gevo secure financing to grow its production capabilities in order to supply renewable jet fuel and isooctane as agreed under its take-or-pay contracts with Delta Air Lines Inc and HCS Group GmbH.
The US airline agreed in December 2019 to buy 10 million gallons of Gevo’s advanced renewable biofuels per year under a long-term contract. Before that, in February 2019, hydrocarbon specialties supplier HCS committed to buy up to 10,000 metric tonnes per year of Gevo’s renewable isooctane over ten years.
“We believe our projects make good economic sense based on the contracts we have in place, and with what we expect in the future. As we raise capital, we will be looking at all strategic options, too,” said Pat Gruber, CEO of Gevo.