In many cases, customers are looking for ethanol free gasoline for a “boat, truck, RV, plane, farm equipment, snowblower, hotrod or motorcycle”, based on concerns over corrosion, engine wear, and performance of E10 in boat engines and outdoor power equipment.
Gevo’s jumped recently into that gap. The move by Gevo into boating fuels follows a decision last June by the National Marine Manufacturers Association to officially endorse isobutanol as a drop-in fuel for marine and recreational boat engines. The fuel is moisture resistant, does not cause phase separation and helps reduce engine corrosion. Thereby addressing concerns that many boaters have with ethanol-blended fuels.
It’s early days, but certainly there’s a market in the “ethanol-free” world, and Gevo has certainly targeted marine, outdoor equipment and off-road vehicle markets, and we’ll see how that roll-out goes. Meanwhile, here’s a look at some of the financial and technical rationale.
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