January 13 (SeeNews) - Gevo Inc (NASDAQ:GEVO) this week said it has exceeded cost targets for the production of isobutanol as it updated on the fourth-quarter performance of its plant in Luverne, Minnesota.
The US biofuels firm said it has demonstrated variable production costs of below the targeted range of USD 3.00 (EUR 2.8) to USD 3.50 per gallon. "We have continued to improve the costs of our isobutanol batches, better than we expected," noted chief executive Patrick Gruber.
In the final three months of 2016, Gevo produced about 190,000 gallons (719,200 litres) of isobutanol, more than in any other quarter and suggesting an annualised rate of over 750,000 gallons per year.
At about 440,000 gallons, isobutanol production for 2016, however, was short of the previously announced estimate of some 500,000 gallons. This was in part due to the company taking the plant down in late December for repairs on a piece of aged pollution control equipment. Gevo has decided to make further upgrades to this equipment while the plant is offline and expects putting it back in operation the next two weeks. The isobutanol-specific equipment is operating well, said Gruber.
The CEO said Gevo increased isobutanol production by some 25%, batch size by about 15% and number of batches by 10% compared to the previous quarter. "These results will be extremely helpful in guiding the design of our planned expansion of the Luverne Plant," he added.
In the fourth quarter, the company also produced 2.8 million gallons of the ethanol at the plant.
(USD 1.0 = EUR 0.943)