The latest partnership between Gevo, Inc. (NASDAQ:GEVO) and Musket Corp is expected to enhance the supply of isobutanol for blending with gasoline. Being a national fuel distributor Musket’s initial target is the retail pumps at Lake Havasu in Arizona, Nevada, and Utah as well as other large marine markets the likes of Lake Powell, and Lake Mead.
Fortunately, isobutanol-blended gasoline is becoming more recognized by retail outlets. Hence, the purchase quantities are expected to expand. On the other hand, the marine market in the U.S is projected to demand isobutanol-blended gasoline whose properties are said to be superior. Some of the key features include reduction of engine corrosion, prevention of higher energy content, and moisture absorption among others.
Speaking about the partnership, Gevo’s Chief Executive Officer Dr. Patrick Gruber, said that Musket has the right grip to enhance the expansion of the use of isobutanol in gasoline blends. In any case, it is one of the significant players in fuel distribution and retail in the U.S.
Gruber further explains that the company has been operating on a tight budget which would not enable it to attain its production capacities. As such the partnership will come in handy given that Gevo’s intention is to commercialize biobased alternatives to petroleum-based products.
Every industry is now hanging onto technology for its processes. Gevo will have an advantage working with Musket, which is technologically ahead. Its primary goal is to maximize cash flows from its operations and the more reason Gevo should hang onto it.
Apart from dealing with chemical products Gevo also develops technology that enhances production of hydrocarbon products from renewable alcohols.
In the recent past, the airline industry has had the challenge of having to rely primarily on biofuels. According to Carol Sim, Alaska Air’s director of environment regulation, it’s hard to get a single producer who can comfortably meet the required commercial production volumes. Other challenges that Sim mentioned include that of delivery, blending and putting it in the aircraft.
