Biofuels company Gevo deepened its term agreements for renewable fuels sales while narrowing losses despite shrinking revenues for ethanol and hydrocarbons.
The company's hydrocarbon fuel sales, which includes alternative fuels such as renewable diesel, totaled $101,000, an 82pc decrease from the same quarter of 2019.
The company announced in August that it entered into a term agreement with Trafigura to supply renewable diesel. The agreement will last 10 years with options to extend it. With the Trafigura agreement, Gevo said it will have 48mn USG annually of renewable fuels termed up in contracts.
Gevo also formed an agreement to provide renewable jet fuel in India with the main consumer being the Indian Air Force although chief executive Patrick Gruber said airlines in the region could also be potential customers.
The company terminated ethanol production at its Silsbee, Texas, facility in March 2020 in response to the Covid-19 pandemic, slashing demand for the product early in the year. The company reported $21,000 worth of ethanol sales in the latest reported quarter, compared with $5.6mn a year ago.
The company reported a loss of $6.8mn, compared with an $8.6mn loss a year earlier.
