UPDATE - Gevo eyes new deals, lower costs after Butamax truce

Gevo Inc (NASDAQ:GEVO) said Tuesday it expects new contracts with customers and a reduction of its annual costs by more than USD 7.5 million (EUR 6.7m) thanks to the recent deal with Butamax.

In August, the company said it and Butamax Advanced Biofuels LLC have reached patent cross-license and settlement agreements, putting an end to all lawsuits between the two US companies. Gevo has spent more than USD 35 million since 2011 on litigation-related expenses.

The company said that by removing legal uncertainties it expects to speed up agreements with customers, licensees and partners. Before, the perception of potential risk related to the legal dispute with Butamax had resulted in certain partners and customers choosing to “stand on the sidelines”, Gevo explained.

Gevo and Butamax now aim to speed up the development of competitive supply for bio-based isobutanol. As part of the new relationship, Gevo will lead development of the jet fuel market. On the other hand Butamax, the biofuel joint venture of DuPont (NYSE:DD) and BP plc (LON:BP), will take the lead role in developing the market for isobutanol as an on-road gasoline blendstock.

(USD 1 = EUR 0.893)

Choose your newsletter by Renewables Now. Join for free!