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GEVO: Rocket To The Moon (Part 3)

|Includes:Gevo, Inc. (GEVO)

Lest I forget let me clarify what I think is the biggest misunderstanding about GEVO

Their biofuel product is of course isobutanol which is made from corn.

Everyone should know that just about everything that is manufactured that we use in daily life needs some aspect of petroleum involved in its production. That includes everything from rubber (tires) to plastics. Hence the common term we always hear "petroleum products".

What people do not understand is that in order to use oil, or petroleum to make all these products isobutanol must be extracted from the petroleum/oil.

Gevo makes the Isobutanol without using any oil and most importantly makes it much cheaper than it costs to extract it from petroleum/oil.

For GEVO to be successful it will never have to sell a drop of isobutanol to be used as a gasoline additive even though it can.

There are many existing ethanol plants all over the country that are in danger of going out of business because they can't make any money manufacturing ethanol. These existing plants cost upwards of 200 million dollars to build.

GEVO can partner with existing Ethanol Manufacturing facilities that are in danger of having to shut down by retrofitting them to produce isobutanol for roughly 40 million dollars.

That is how they will expand fast.

By entering in to partnership arrangements with their proprietary technology with the many existing companies with bio fuel facilities currently producing ethanol that are facing bankruptcy due to ethanol being unprofitable.

Watch the video at this link to see how easy it is to extract isobutanol from GEVO's facilities and imagine how much more expensive and polluting it is to extract it from oil.

Perhaps that is the reason BP and DUPONT are so intent on trying to shut them down with these lawsuits. Think of the profits and business BP and DUPONT would lose by having a competitor who can produce isobutanol cheaper and without having to use any petroleum to do it. BP loses because its petroleum will not be needed to make everyday petroleum products and DUPONT loses because it no longer gets to extract and sell isobutanol from the petroleum it gets from BP. This last paragraph is just supposition on my part, but it makes sense.

Disclosure: I am long GEVO.

Stocks: GEVO