ENGLEWOOD, Colo. – Gevo, Inc. (NASDAQ:GEVO), has announced that Express Lube of Fredericksburg, Texas, is the first U.S. service station to sell gasoline blended with Gevo's renewable isobutanol at the pump. This is anticipated to be the first of many retail locations to offer Gevo's product as the company rolls out its isobutanol to the marina, outdoor equipment and off-road gasoline markets.
Gevo's isobutanol is blended with gasoline to help meet renewable fuel and clean air standards, and after several years of work and testing, has successfully obtained registration with the U.S. Environment Protection Agency as a fuel additive. Recently, the National Marine Manufacturers Association officially endorsed isobutanol as a drop-in fuel for marine and recreational boat engines. The NMMA and the American Boat and Yacht Council, under the guidance of the U.S. Department of Energy and Argonne National Laboratory, engaged in an industry-supported program to evaluate the performance of recreational marine engines operated on fuel containing up to 16 percent isobutanol.
According to Express Lube owner Adam Sheffield, he decided to sell isobutanol-blended gasoline because its moisture resistance and capacity to reduce engine corrosion are ideal for equipment and vehicles that are used intermittently. Sheffield learned about Gevo's renewable isobutanol from Kino Oil, a local distributor that sells the product in drums. Kino began to offer the fuel made with isobutanol after finding that it is ethanol-free and is excellent for use with marine and off-road engines.
As a result of this improved performance provided by isobutanol-blended gasoline, Express Lube has been selling its fuel at over a 50 percent premium in comparison to local E10 gasoline blends (10 percent ethanol).
"Isobutanol is great for weed eaters, mowers and farm or ranch equipment that sit unused for long periods of time, because it does not cause carburetors to gum up the way ethanol does," says Sheffield. "I tried it myself after discovering that the ethanol-blended gasoline sitting in my riding mower over the winter had ruined the carburetor. It cost me $700 to replace. That's when I switched to isobutanol."
Gevo believes that retail sales of isobutanol-blended gasoline by Express Lube will help establish the value proposition for other fuel retailers.
"We welcome Express Lube as the very first retail service station to sell gasoline made with our isobutanol. It's only a matter of time before other distributors and gas stations across the U.S. and in other parts of the world discover the benefits of isobutanol, and begin to offer our product commercially as well," said Dr. Patrick Gruber, chief executive officer of Gevo.