Report posted Sept. 30, 2009, at 5:50 p.m. CST

Gevo Inc. recently announced that ICM Inc.'s 1 MMgy demonstration-scale ethanol facility has been retrofitted to employ the company's biobutanol production technology. The St. Joseph, Mo.-based demonstration plant began producing biobutanol in late September.

Gevo's technology involves the retrofit of existing ethanol plants to produce biobutanol. The biobutanol can be used directly as a fuel component, or further processed into renewable gasoline, diesel, jet fuel or chemicals. Plants that employ Gevo's technology also retain the ability to produce ethanol, giving producers the flexibility to produce a wide range of products.

The retrofit of ICM's facility was completed in less than three months. According to Gevo spokesman Jack Huttner, it is expected a commercial-scale retrofit can be completed within a six- to nine-month timeframe.

Gevo's biobutanol is produced through a process that utilizes fermentation and is similar to a traditional ethanol production process. As part of the retrofit, Gevo replaces traditional yeast with its proprietary butanol-producing yeast. Gevo has also developed a proprietary separation process that is added during the retrofit. The additional cost of this equipment is currently projected to be approximately 30 cents per gallon of installed ethanol capacity, meaning a 100 MMgy ethanol plant could be retrofitted for approximately $30 million.

Gevo also recently announced the formation of Gevo Development LLC, which is a new entity that will work to develop a fleet of biorefiners that employ Gevo's retrofit package. According to Gevo spokesman Jack Huttner, Gevo is the majority owner of Gevo Development.

Gevo Development will be managed by Mike Slaney and David Black, who have significant experience in the financing, acquisition and operation of ethanol facilities. As managing directors of Gevo Development, they bring the skills and expertise Gevo needs to finance a rapid deployment of its biorefinery technology to produce butanol and hydrocarbons for the fuels and chemicals industry.

According to Huttner, Gevo Development is currently working to procure a facility and has begun the process of raising money to finance the retrofit. He said the company could begin work on its first commercial-scale facility within six months.

To learn more about Gevo, the company's technology and its partnership with ICM, see "Retrofitting for Alternatives" in the October issue of EPM.