2020-04-30 05:50:32
Gevo, Inc. announced at the end of March that, due to the impact the COVID-19 virus has had on the economy and Gevo’s industry, Gevo has suspended production operations at its production facility in Luverne, Minn., for the foreseeable future. In connection with the suspension of operations and the overall economic disruption caused by COVID-19, Gevo also made the difficult decision to terminate 30 employees, cutting across Agri-Energy’s operations at the Luverne facility and Gevo’s headquarters in Colorado. The remaining employees that earn above a certain dollar threshold, including senior executives, have agreed to take a 20 per cent salary reduction over the next three months, with the 20 per cent portion to be paid in stock. With these steps, Gevo expects to save several million dollars of cash burn during 2020.
Gevo expects to continue the production of renewable isooctane and sustainable aviation fuel from the plant in Silsbee, Tex. Additionally, Gevo intends to continue developing its hydrocarbon business, including the planned expansion of the Luverne facility, and will continue to move forward in securing the project funding needed to expand the Luverne facility. The expansion is designed to allow Gevo to produce large quantities of low carbon isobutanol, sustainable aviation fuel and renewable isooctane.
Gevo also expects to continue engineering efforts for the expansion of isobutanol production and the construction of a commercial renewable hydrocarbon production facility, as well as additional decarbonization projects at the Luverne Facility. Furthermore, Gevo plans on continuing the development of its biogas projects in Northern Iowa..
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