Gevo (GEVO) 'Side-by-Side' Operations Moving Along Well - Cowen

Cowen and Company issues commentary on Gevo, Inc. (Nasdaq: GEVO) after the company updated on 'Side-by-Side' operations. The firm has Gevo at Market Perform with a target price of $1.

Analyst Jeffrey Osborne commented, Gevo's Luverne, MN plant, which as been running in "Side-by-Side" operations mode since June, has reached a new milestone with the commissioning of its distillation equipment in September. With one fermenter specifically dedicated to isobutanol production and the introduction of the distillation column, which will likely lessen bottlenecks further down he production line the plant has finally reached railcar volumes of production.

Management highlighted that not only is this the final component of its capital investment into the SBS operations for the Luverne, MN plant, but this increased level of output will help to decrease isobutanol manufacturing costs down to a more competitive level. Isobutanol batch size has effectively doubled while turnaround times have been halved. Importantly, yields have consistently exceeded 90% relative to the available starch content.

Lastly, isobutanol production is slated by management to reach a production level of 50-100 thousand gallons per month by the end of the year. Ultimately, Gevo believe that an isobutanol production run rate of between around two to three million gallons per year can be reached, while the other three fermenters at the Luverne, MN plant produce ethanol.

For an analyst ratings summary and ratings history on Gevo, Inc. click here. For more ratings news on Gevo, Inc. click here.

Gevo, Inc. closed at $0.35 yesterday.

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