US biofuels company Gevo Inc (NASDAQ:GEVO) said Thursday it will supply isobutanol to Houston-based distributor Musket Corp for blending with gasoline and sale in the western US.
Under the terms of the agreement, Gevo will initially supply the isobutanol in railcar quantities of between 28,000 gallons (105,990 litres) and 29,000 gallons, according to the statement. Once production ramps at Gevo’s Luverne facility in Minnesota and isobutanol-blended gasoline becomes more established at retail outlets, the buyer is expected to expand its purchase quantities.
At first, Musket will offer the blend on marine and off-road markets in the western parts of the US, such as the states of Arizona, Nevada and Utah. It plans to start with retail pumps at Lake Havasu in Arizona and afterwards to step into large marine markets such as Lake Powell, Lake Mead and other large lakes in the west. The firm, part of Love’s Family of Companies, anticipates expanding distribution into its core Oklahoma market later on, as well.
The National Marine Manufacturers Association considers that isobutanol-blended gasolines can prevent moisture absorption and phase separation, reduce engine corrosion, provide higher energy content and contain a high octane rating.
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