Gevo to supply isobutanol for gasoline blending

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Gevo Inc. said today that it has an agreement with Musket Corp. to supply isobutanol for blending with gasoline.

Houston-based Musket is a national fuel distributor under the Love’s Family of Companies. Initial target markets are expected to include the marine and off-road markets in Arizona, Nevada and Utah.

Gevo, a renewable-technology, chemical products and biofuels company, said the supply program is expected to begin with railcar quantities of isobutanol (a railcar holds about 28,000 to 29,000 gallons). As isobutanol production ramps at Gevo’s production facility in Luverne, Minn., and isobutanol-blended gasoline becomes more established at retail outlets, Musket expects to expand its purchase quantities.

Gevo said Musket is initially targeting retail pumps at Lake Havasu in Arizona, followed by other large marine markets such as Lake Powell, Lake Mead and other large lakes in Western states. Later, Musket anticipates expanding distribution into its core Oklahoma market.

Gevo said gasoline demand for the marine market in the United States is estimated to be about 1.7 billion gallons a year. The company said the National Marine Manufacturers Association has endorsed the use of its isobutanol in the marine fuel market because of the superior properties of isobutanol-blended gasolines — preventing moisture absorption and phase separation; reducing engine corrosion; and providing higher energy content. Isobutanol also has a high octane rating.

“We believe Musket is an excellent partner to expand the use of isobutanol in gasoline blends as our isobutanol production at Luverne builds. Musket and Love’s are significant players in fuel distribution and retail in the U.S., so they have great reach to get our isobutanol into the market,” Gevo CEO Patrick Gruber said in a statement.

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