The plant will be converted into an isobutanol plant with expected production capacity of approximately 38 million gallons per year (MGPY).
The conversion is scheduled to commence later this year and production of isobutanol at the facility in the fourth quarter of 2012.
Under the terms of the transaction, Gevo will provide the technology and capital to convert Redfield’s existing 50 MGPY ethanol facility and will receive an equity interest in Redfield.
The plant will become Gevo’s second production facility and is expected to bring the company’s total annual isobutanol capacity for 2012 to 60 MGPY.
The company also signed a joint venture transaction for its third plant, which will add 50 MGPY of isobutanol production.
Gevo plans to have approximately 110 MGPY of isobutanol capacity online in 2013.
