"... Specialty chemical company, German-based Lanxess AG, the world’s largest producer of synthetic rubber, has invested in Gevo and expects to become a customer so it can access our isobutanol for the manufacture of butyl rubber. Why? Their business is growing and they need an alternative to oil for raw material supplies. Chemical companies are also interested in finding alternative sources of raw material to hedge against oil price volatility. These two market dynamics are driving significant customer interest and willingness to negotiate long-term off take agreements. Gevo’s business plan forecasts sales primarily into the chemicals markets for the production of our first few plants."
exactly...the profit margin is tight on ethanol producers while Isobutanol has the ability to be used in a much broader market with a much better profit margin. Why should ethanol producers come to Gevo to get their plants changed over to isobutanol production.?...I think the better question to ask is why wouldn't they/// Gevo is in the drivers seat as long as the next quarterly meeting reveals that Gevo's ready to kick it into high gear.. We'll see.