Overview October 2020 - Patrick Gruber, CEO - Gevo Inc.
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Overview October 2020 Patrick Gruber, CEO
FORWARD LOOKING STATEMENTS
Any statements in this presentation about our future expectations, plans, outlook and prospects, and other statements
containing the words “believes,” “anticipates,” “plans,” “estimates,” “expects,” “intends,” “may” and similar expressions,
constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those indicated by such forward-looking statements as a result of various important factors,
including risks relating to: the success of our sales and production efforts in support of the commercialization of our products;
our growth plans and strategies, including the planned expansion of our facilities; our technologies; the sizes of markets for
our products; the benefits and characteristics of our products; our ability to obtain and maintain certifications related to our
products; memoranda of understanding, discussions and negotiations relating to potential projects; our ability to raise funds to
continue operations or fund growth projects; our projected revenues or sales; our ability to perform under current or future
contracts; our ability to become profitable; laws and regulations supporting or providing economic advantages to low-carbon
products; the potential that adverse changes could be made to laws and regulations supporting or providing economic
advantages to low-carbon products; and other factors discussed in the “Risk Factors” of our most recent Annual Report on
Form 10-K for the fiscal year ended December 31, 2019 and in other filings that we periodically make with the SEC. In
addition, the forward-looking statements included in this investor presentation represent our views as of the date of this
investor presentation. Important factors could cause our actual results to differ materially from those indicated or implied by
forward-looking statements, and as such we anticipate that subsequent events and developments will cause our views to
change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically
disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of
any date subsequent to the date of this investor presentation.
2
WE ALL HAVE A PROBLEM, AND IT CAN’T BE IGNORED
GHG’s Pollution
Pollution
THERE IS
NO PLANET B
SKOLSTREJK
FOR KLIMATET
3
MEGA-TREND: GROWING GHG’S DRIVES GROWING CONCERN THAT “SOMETHING” MUST BE DONE
LEADS TO FOSSIL CARBON REDUCTIONS BEING VALUABLE, CREATES MARKETPLACE FOR LOW FOSSIL FOOTPRINT FUEL PRODUCTS
Record Levels of CO2 in the Atmosphere are Continued Consumption of Fuels(1) Brand Owners are recognizing
Driving Concern… Means Even More CO2… that they need to do something,
(quad BTU)
and are saying so…
Selected Examples
UPS commits to sourcing Total commits to be
40% of ground fuel from carbon neutral by
low carbon or alternative 2050 and reduce
fuels by 2025; 25% of carbon intensity of
annual vehicle purchases energy products by
by 2020 will be alternative 60% by 2050
fuel and advanced
technology vehicles
Delta is committing
$1 billion over the
KLM’s “CO2ZERO” offers next 10 years in bid
clean energy investments to be 1st global
tied to passenger rates; airline to be carbon
KLM also has a goal to neutral by 2030
reduce CO2 per
passenger by 20% by Shell executive pay
2020; and a further tied to short-term
reduction of 15% by 2030 carbon emissions
(vs. 2005) targets in 2020
BP sets ambition for net ConocoPhillips has a
zero by 2050, long-term target to
fundamentally changing reduce GHG
organization to deliver; emissions intensity
includes a 50% cut in from 5 to 15% by
the carbon intensity of 2030 (vs. 2017)
Approximately 955 BGPY of fossil fuel was used products BP sells by
2050 or sooner; carbon
world-wide in 2017 for gasoline, diesel, and jet fuel. pricing advocacy United Airlines
became the first
If GHG emissions continue at the same rate Even with advent of EV, the EIA projects relatively U.S. airline to
“Shipment Zero” is
globally as seen in the last 30 years projected out small demand change for fossil fuels, in part because Amazon’s vision to
publicly commit to
reducing GHG
to 2050, GHG levels could reach ~490-500ppm of basic economic development across the globe make all Amazon
shipments net zero
emissions 50% by
2050 (September
carbon, with 50% of all
2018)
shipments net zero by
2030
(1) U.S. EIA 2020 Annual Outlook.
(2) Source: IEA 2020 World Energy Outlook. Sustainable Development Scenario (SDS) outlines path to global net zero emissions by 2070, targets limiting global temperature rise to 1.65°C and global CO2 emissions falling to less than 10bn tons by 2050.
4
WE ARE GOING AFTER THE “WHOLE GALLON” WITH AN ULTRA-LOW CARBON SCORE…
Paradigm Shift
• Production is proven
• Works with all types of engines
• Works with all ages of vehicles
• Compatible with fuel infrastructure
(tanks and pipelines)
• Easy to adopt(1)
Potential to replace all the fossil hydrocarbons in a gallon with renewable hydrocarbons
(1) Certain regulatory approvals required in some jurisdictions.
5
AN ADVANCED GENERATION OF LOW CARBON DROP-IN TRANSPORTATION FUEL
Target Markets/Products (>955 BGPY)
Jet Fuel
Raw Materials
• Production technologies work
• Products work
Gasoline (Isooctane)
• Markets are developing
• We are selling products
Oxygenated Blendstocks for Gasoline • We still need to achieve
(Isobutanol) economies of scale
• Targeting customers who pay
Most carbohydrate-based a premium for the value add
raw material can work Diesel (future) we bring
Sources: EIA, IEA and Nexant, US DOT FHWA
6
OUR TECHNOLOGY LEVERAGES THE BEST OF BIOLOGY AND CHEMISTRY
IP Portfolio Valued at +$400 million*
Proprietary
Proprietary Isooctane (gasoline)
Photosynthesis Fermentation
Catalytic
and Processing Technologies
Chemistry
(GIFT®)
Carbon Dioxide Carbohydrate (sugars) Isobutanol
Water
Jet Fuels
Proprietary Yeast
Sources: EIA, IEA and Nexant, US DOT FHWA
7
* Analysis of IP by Peak Value IP LLC
GEVO JET FUEL
8
PRODUCTS WORK, WE ARE BUILDING EXPERIENCE
FARNBOROUGH AIRPORT
CHICAGO O’HARE
BRISBANE AIRPORT
VAN NUYS
FARMINGDALE
NEW YORK
AIRPORT
9
RENEWABLE GASOLINE (ISOOCTANE) IN PERFORMANCE FUELS
Start with high value niche
Up to 4MGPY under take-or-pay contract
10CIRCULAR, EARTH-FRIENDLY BUSINESS MODEL
GEVO’S BUSINESS SYSTEMS, FROM RAW MATERIALS TO RENEWABLE FUELS, EXEMPLIFIES THE CIRCULAR ECONOMY IN ACTION
Driving the Life-cycle GHG’s Emissions of Jet,
100g/MJ Gasoline, and Diesel to Net Zero
CO2 Emissions
0g/MJ
CO2 Emissions
Soil Carbon Capture has Potential to Drive
to Negative Life-Cycle GHG Emissions
POTENTIAL FOR 100% REDUCTION IN GHG EMISSIONS(1)
100% OF AGRICULTURAL FEEDSTOCK NUTRITIONAL VALUE IS RETURNED TO THE FOODCHAIN
(1) Source: Sheehan, et al, 2017; Mueller, et al, 2019; Indigo reports that 10 – 15x more could be sequestered.
11LEVERAGING SUSTAINABLE AGRICULTURE CAN DRIVE FOOTPRINT LOWER!
And produce protein too
Agriculture improvements are
practical and being done
• Sequester carbon in the soil
• Higher yield
• Less inputs
ISCC PLUS
Certified Farm
(49gCO2e/kg)
Companies such as Indigo, Farmers Business Network, and Locus believe that soil carbon capture can be dramatically increased leading to orders of magnitude increase by building
root systems. If true, the amount of carbon capture per gallon could be in the 10’s of kgs per gallon. We are working with these companies to figure it out.
12Purpose of Gevo’s outreach
GLOBAL CERTIFICATIONS AND TRANSPARENCY
RSB ISCC
Adheres to the UN’s 12 Principles: ISCC PLUS certification enables Gevo partnered with Blocksize
Gevo to validate the responsible Capital to establish a
nature of its liquid transportation blockchain technology for
fuels and to highlight the tracking sustainability, building
traceability, qualifying that such trust and setting the highest
fuels are produced in a standards for the industry
sustainable manner
13OVERVIEW OF GEVO
PRODUCTS, PRODUCTION TECHNOLOGY PROVEN, NOW MARKET TRACTION HAS BEGUN
Business Overview Facilities Overview
• Headquarters: Englewood, CO • Corporate Headquarters (Englewood, CO) – Offices and Labs
• Founded: 2005 • Alcohol Production Facility (Luverne, MN) –1.5 MGPY IBA.
• Markets Served: Renewable gasoline, Renewable Jet Fuel, Renewable Production proven in full scale fermenter system
Diesel (future), Specialty Oxygenate Blendstocks • Jet and Isooctane Biorefinery* (Silsbee, TX) – 100 KGPY of
Luverne, MN Facility
• Proprietary technology position (patents and know-how) covering capacity. Operating since 2011, selling jet and isooctane for
isobutanol hydrocarbon fuels and chemicals technologies gasoline
• Technologies proven to work
• Products: Jet Fuel, Isooctane, Feed, Corn Oil, IBA
• Employees: ~26 (20 in Colorado, 6 in Minnesota) + 20 Contractors
Silsbee, TX
Facility
Market Traction Customers, Partnerships, and Agreements
+$1.5 billion +$600 million Other Off-
take-or-pay offtake take-or-pay offtake
(closed)(2) (negotiating)(2)
Takes
Global
Gasoline Company A
City of Seattle
Global
Jet Fuel Company B
The customers and partners on this slide represent current and past customers/partners
*Operated in Partnership with South Hampton Resources, Inc.
14GROWING DEMAND FOR GEVO FUELS
(2)
Product Mix
Max Renewable
Volume (1) Gasoline
Stage (000 GPY) SAF Products(3)
Total gallons under contract 48,600 49% 51%
Total in contract review/finalization stage 30,500 84% 16%
Total in discussion and/or diligence stage 87,210 64% 36%
Total Gallons in Development Pipeline 196,810
(1) The estimate is based on certain assumptions in the contracts.
(2) As of September 1, 2020. There can be no guarantee that any additional contracts are completed, and companies on the list may be deleted or new ones added at any time. There is no guarantee that the company will update
this slide and present it in the future
15
(3) IBA and or isooctaneLONG-TERM, TAKE-OR-PAY CONTRACTS SET STAGE FOR PROJECT INVESTMENT
OUR CONTRACT PORTFOLIO IS GROWING BECAUSE IT IS ENVIRONMENTALLY AND ECONOMICALLY ATTRACTIVE FOR OUR CUSTOMERS, GEVO
AND FOR OUR INVESTORS
Sustainable and Profitable For Our Customers…
• Why Our Contracts Work
Breakdown of Contracted Fuel Price – Illustrative Example
($ / HC gal)
Additional Value to Customers
– Reduced carbon footprint for our customers
+ 75% Carbon Reduction(2)
$1.50 + ZERO particulates(3)
– Attractive economics for our customers + CERTAINTY of Price(4)
$3.50
– Attractive profitability for Gevo $2.00
• Portfolio is growing because it secures products for Contracted Price Paid to Gevo Less: Monetizable Environmental Net Price Paid for Gevo Fuel
v.s.
Prevailing Market Price of
Benefits (Customer Share) (1) Conventional Fuels
our customers which immediately, substantially
reduce their carbon footprints and air pollution – in …And Sustainable and Profitable for Gevo
an otherwise challenging environment and timeline to Breakdown of Contracted Fuel Price – Illustrative Example
do this ($ / HC gal)
$0.58 Net Cash Margin
• In addition, monetizable environmental benefits, plus $1.50
$0.63 Fixed O&M
the high quality of our fuels, make our contracts
$1.09 Variable O&M
economically attractive for both our customers and $5.58
$0.55 Premium for Renewable
for Gevo $3.50 Process Energy
$1.99 Feedstock
(5)
Contracted Price Paid to Plus: Monetizable Plus: Co-Products Total Price Received by Total Costs (Feedstock,
Gevo Environmental Benefits Gevo Variable and Fixed Cash
(1)
(Gevo Share) Costs)
(1) Applicable environmental benefits and amount of sharing between Gevo and customer varies by contract; includes Low Carbon Fuel Standard (LCFS) credits, Blender’s Tax Credit, EU RED II credits, RINs and Advanced Fuels Credit.
(2) Based on Luverne expansion certified Carbon Intensity score of 25 shown for illustrative purposes; the business model has the potential for 100% reduction in GHG emissions. Source: Sheehan, et al, 2017; Mueller, et al, 2019; Indigo reports that 10-15X more
could be sequestered.
(3) Gevo renewable premium gasoline does not contain particulates, sulfur or nitrogen. 16
(4) For customers with fixed-price components in their contracts.
(5) Includes animal feed and back-end oil.BUSINESS MODEL: TECHNOLOGY PROVIDER, PROJECT DEVELOPER, OPERATOR
BUILD PLANTS VIA PROJECT FINANCE, COLLECT ROYALTIES, COLLECT FEES, RECEIVE EQUITY
Gevo, Inc. Role:
Making Money
• Establish Off-take Contracts
Gevo Incorporated
• Quality and Sustainability Compliance for Licensees • Technology Royalty
• Marketing Fees
• Technology Optimization • Project Development Fees
• Develop Projects to Fulfill Demand • O&M and Asset Mgmt. Fees
• Retained equity interest
• License Technology • Sustainability Tracking Fees
Capital Light Financing Model—Off Balance Sheet
$
Gevo is Leading the Project Development for the first group of plants U.S. Plant
• ~70mmgpy of capacity is in development to meet contracted renewable fuels demand:
U.S. Plant
– Existing Luverne Facility (13mmgpy)
– Seeking two US ethanol facility acquisition and retrofits (~30mmgpy each) $ $
• Four attractive potential US expansion sites identified; counterparties engaged
• CitiGroup is working with Gevo to secure the debt and equity ($700M) for the projects
Licensing Opportunities in Development
• EU: Three opportunities under discussion
Plant #1 Plant #2
• Asia: Praj network with India Airforce as the “pull”
Plant #3 Plant #4
• South America: Sugar cane/Molasses
Plant #5
• NA: Two opportunities under discussion
(1) In discussions with counterparties.
17LUVERNE FACILITIES EXPANSION
CLEAR, CONCRETE VISIBILITY ON EXECUTION, LEVERAGING EXISTING INFRASTRUCTURE
CURRENT EXPANDED
6 750,000 bu corn CURRENT
storage
1 Four 265,000 Gallon Fermenters. 9 Expanded Original Fermenter to 5 7
One Purpose Built for Isobutanol 500,000 Gallon
4 8 Product
Storage
3
2 Distillation Building #1 10 Two 500,000 Gallon Fermenters +20 Acres 2
Prime Farmland
Owned by
3 Distillation Building #2 11 IBA Beer Well Gevo 1
(Zoned
Industrial)
Direct Connect
4 Two 32,000 Gallon Fermenters 12 Combined Heat & Power (CHP) to Low Cost
Building Wind Power
5 One 5,000 Gallon and one 10,000 13 Propagation Building
Gallon Fermenter 14 15 EXPANDED
6 Corn Receiving & Feed Loadout 14 12mmgpy Hydrocarbon Plant
9 10 Product
Storage
7 Dry-Frac Facility 15 Additional 250,000 Gallons of
Product Storage
11
8 Feed Centrifuges & Feed Out 13
Employees: Pre-Covid, 32; Currently Employees: Technicians to
6 Management Team Members Reach 48 Employees 12
xpansion ideas indicated on this slide are for illustrative purposes, do not constitute definitive plans, and could change at anytime
18BUSINESS SUMMARY
Business Strategy:
The Problem:
Gevo has shown that the technologies work and that products have
• Fossil fuels emit fossil greenhouse gasses (GHGs) potential to meet the market needs.
Aggregate the demand of renewable IBA, jet fuel, and hydrocarbons and
• Companies want to mitigate liability work to secure financeable off-take that support project financing for the
• Governments want to reduce GHG emissions build-out of IBA, jet fuel and isooctane.
• Gevo develops business, markets, production projects and
• Consumers care about pollution and want GHGs addressed licenses technology. Gevo plans to use project financing to
secure the capital needed to build out our capacity with the
The Solution: intent of minimizing dilution at Gevo corporate level.
– Build out IBA, jet, and isooctane, with project financing (currently
• ”Decarbonize.” Lower the carbon footprint of fuels by replacing the targeting 30% equity and 70% debt) at subsidiary level
fossil carbon with “green” carbon. Use renewable energy in the • License technology establishing large production facilities in other regions
production of mainstream liquid fuel products with enhanced of the world.
properties: Isobutanol (IBA), jet fuel, isooctane for renewable
gasoline.
• Gevo has proven proprietary technology to
“decarbonize” IBA, jet fuel and isooctane for
renewable gasoline.
1 Cash EBITDA is a non-GAAP measure and is calculated by adding depreciation and non-
cash stock compensation to GAAP loss/income from operations. 19OTHER KEY INFORMATION
• Cash
• $81.7 Million (8/30/2020)
• Debt
• 2020/2021 Notes (Whitebox): $12.5 million principal (8/30/2020)
• Common Shares Outstanding
• ~118.3 million (8/30/2020)
• Warrants Outstanding
• 3.9 million @ weighted avg of $0.60/share (8/30/2020)
• 51k @ weighted avg of $164.32/share (8/30/2020)
• Management and Insider Holdings
• 4.2% of outstanding common stock (8/30/2020)
20Purpose of Gevo’s outreach
FOR ADDITIONAL INFORMATION ABOUT GEVO
These short videos explain more about Gevo, our process,
business system, and how we think about sustainability
Working Toward Zero Carbon Footprint (2:46): https://vimeo.com/440219829
PAST
Food and Fuel (1:19): https://vimeo.com/440220247
Where we are so far (1:21): https://vimeo.com/416215170
FUTURE
Alternative Feedstocks (1:00): https://vimeo.com/416214862
Our Process (1:01): https://vimeo.com/416215010
Replacing Fossil Based Carbon (2:07): https://vimeo.com/396232536
Farming Carbon & Soil Conservation (1:54): https://vimeo.com/379773448
Sustainable Jet Fuel (1:59): https://vimeo.com/379896308
Partners with Mother Nature (1:49): https://vimeo.com/416215170
Going After the Whole Gallon(0:50): https://vimeo.com/451342705
SAF Opportunities (0:40): https://vimeo.com/451342390
We are Recycling Carbon (0:45): https://vimeo.com/451341985
Our Circular Economy (0:48): https://vimeo.com/451341499
www.gevo.com
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