Energy Fuels (UUUU)(EFR:CA) – Financial Results Lower on Limited Sales Company Gearing Up For Rare Earth Push

Friday, May 14, 2021

Energy Fuels (UUUU)(EFR:CA)
Financial Results Lower on Limited Sales, Company Gearing Up For Rare Earth Push

As of April 24, 2020, Noble Capital Markets research on Energy Fuels is published under ticker symbols (UUUU and EFR:CA). The price target is in USD and based on ticker symbol UUUU. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Energy Fuels is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The Company also produces vanadium. Headquartered in Colorado, Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch ISR Facility in Wyoming, and the Alta Mesa ISR Facility in Texas. The producing White Mesa Mill is the only conventional uranium mill in the U.S. and has a licensed capacity of 8 million pounds of U3O8 per year. Nichols Ranch is in production and has a licensed capacity of 2 million pounds of U3O8 per year. Alta Mesa is currently on standby. Energy Fuels also owns several licensed and developed uranium and vanadium mines on standby and other projects in development.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Energy Fuels reported a loss net to the company of $10.9 million ($0.08) versus a loss of $5.7 million ($0.05). With uranium and vanadium operations largely shut down until prices improve, the loss was not unexpected. Revenues were a modest $353,000, in line with previous quarters. The company has been recovering modest amounts of uranium from alternate feed materials and mixed rare earth elements processing and uranium inventories have grown to 690,800 pounds of uranium from 134,000 a year ago. The company has not entered into any long-term sales contracts and does not expect to do so in 2020.

    Company is gearing up for a rare earth elements (REE) push.  Energy Fuels took advantage of a higher stock price to raise $12.99 million growing its cash position to $44 million from $24 million at the end of the year. In a recent presentation to analyst at another firm, management indicated it would take $2 million to convert the White Mesa mill to produce REE carbonate. It would take another $4-5 …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Gevo Inc. (GEVO) – Net-Zero Concept On Track and RNG Project Financed

Friday, May 14, 2021

Gevo, Inc. (GEVO)
Net-Zero Concept On Track and RNG Project Financed

Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    1Q2021 EBITDA Loss Higher Than Expected. Adjusting 2021 EBITDA loss estimate. 1Q2021 EBITDA loss of $7.8 million was higher than than expected due to early stage project development expenses of $2.7 million. Our new 2021 EBITDA loss estimate increases to $39.8 million to include the ramping up of early stage project costs, including FEED and other development costs.

    Renewable Natural Gas (RNG) financing closed and project on track for startup next year.  A 21-year green bond financing of $67.2 million at an interest rate of 1.5% closed and will finance the RNG plant. The wholly-owner project is likely to be consolidated, and development and other costs of $9.3 million were reimbursed at closing. RNG plant starts up in 2H2022 and annual cash flow is estimated at …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Energy Fuels (UUUU)(EFR:CA) – Energy Fuels Announces Q1-2021 Results

 

 


Energy Fuels Announces Q1-2021 Results, Including Robust Balance Sheet, Continued Readiness to Supply Uranium into the U.S. Uranium Reserve when Established & Continued Ramp-up to Commercial Rare Earth Production; Webcast on Monday, May 17, 2021

 

LAKEWOOD, Colo.May 13, 2021 /CNW/ – Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (“Energy Fuels” or the “Company”) today reported its financial results for the quarter ended March 31, 2021. The Company’s annual report on Form 10-K has been filed with the U.S. Securities and Exchange Commission (“SEC“) and may be viewed on the Electronic Document Gathering and Retrieval System (“EDGAR“) at www.sec.gov/edgar.shtml, on the System for Electronic Document Analysis and Retrieval (“SEDAR“) at www.sedar.com, and on the Company’s website at www.energyfuels.com. Unless noted otherwise, all dollar amounts are in U.S. dollars.

Highlights:

  • At March 31, 2021, the Company had $60.37 million of working capital, including $44.11 million of cash and marketable securities and $27.98 million of inventory, including approximately 690,800 pounds of uranium and 1,672,000 pounds of high-purity vanadium in the form of immediately marketable product.
  • Due to recent share price strength, the Company raised gross proceeds of $12.99 million on its at-the-market equity program between April 1, 2021 and May 12, 2021, further enhancing the Company’s financial position.
  • During the quarter ended March 31, 2021, the Company incurred a net loss of $10.91 million, compared to a net loss of $5.66 million for the first quarter of 2020, due primarily to an increase in the Company’s share price during Q1 2021, which resulted in a non-cash mark-to-market increase in warrant liabilities of $3.50 million during Q1 2021, and an increase of $2.69 million in development expenditures in Q1 2021 compared to Q1 2020 primarily due to the development and ramping up of the expected rare earth element (“REE“) carbonate production program at the White Mesa Mill during the first quarter of 2021.
  • With several existing mines on standby and existing inventories of Company-produced, U.S.-origin uranium, the Company continues to be ready to supply uranium into the U.S. Uranium Reserve once it is established by the U.S. government.
  • On March 1, 2020, the Company, along with Neo Performance Materials (“Neo“), announced the joint launch of a U.S.-European REE production initiative under which the parties plan to produce value-added REE products from natural monazite sands, a byproduct of heavy mineral sands mined in the southeastern United States. Pursuant to this initiative, in late-March 2021 Energy Fuels commenced ramping-up commercial production of a mixed rare earth carbonate (“REE Carbonate“) from natural monazite sands at the Company’s White Mesa Mill. Under an agreement in principle signed on March 1, and subject to completion of definitive agreements and successful ramp-up of production, Energy Fuels will ship a portion of its REE Carbonate production to Neo’s REE separations facility in Sillamae, Estonia (“Silmet“). Neo will then process the REE Carbonate into separated REE materials for use in REE permanent magnets and other REE-based advanced materials. 
  • On March 9, 2021, the Company announced that the first shipments of natural monazite ore arrived at the Company’s White Mesa Mill from The Chemours Company’s Offerman Plant in Georgia, pursuant to a supply agreement entered into by the Company and Chemours in December 2020.
  • On April 21, 2021, the Company announced the execution of a non-binding memorandum of understanding for the potential future supply of additional natural monazite sands from the Titan heavy mineral sand project in Tennessee owned by Hyperion Metals Limited.
  • On April 23, 2021, the Company announced that the U.S. Department of Energy (“DOE“) Office of Fossil Energy and National Energy Technology Laboratory exercised an option to award Energy Fuels, working with a team from Penn State University, an additional $1.75 million to complete a feasibility study on the production of REE products from natural coal-based resources, as well as from other materials such as REE-containing ores like the natural monazite ore the Company is currently processing at the White Mesa Mill.
  • On April 27, 2021, the Company announced that it engaged Carester SAS (“Carester“) to prepare a scoping study for the development of a solvent extraction (“SX“) REE separation circuit at the White Mesa Mill. Carester is one of the world’s leading global consultants on REE supply chains, with expertise in designing, constructing, operating and optimizing REE production facilities globally.

Mark S. Chalmers, Energy Fuels’ President and CEO, stated:

“Without a doubt, Energy Fuels is making major strides toward restoring critical U.S. rare earth supply chains, while also maintaining our position as the leading U.S. uranium producer,” stated Mark S. Chalmers, President and CEO of Energy Fuels. “On rare earths, our efforts over the past several months culminated in the announcement on March 1 that Energy Fuels and Neo Performance Materials were creating a new, U.S.-European rare earth supply chain. In early March, we began to receive shipments of rare-earth-rich natural monazite sands from Chemours’ Georgia heavy mineral sand operations. In late-March, we began to ramp-up production of an intermediate rare earth product at our White Mesa Mill in Utah using monazite from Chemours. This is expected to be a high-value product ready to be separated and refined into value-added rare earth products at Neo’s plant in Europe. At this time, no other U.S. company is producing a product this far down the rare earth value chain.

“However, as I’ve said many times, we have much bigger rare earth plans, and the momentum is building rapidly as we execute our purposeful strategy. We are now taking real steps toward designing and building fully integrated, U.S. rare earth production capabilities. To this end, we hired Carester SAS of Lyons, France, one of the world’s leading rare earth supply chain experts, to help us begin designing rare earth separation capabilities at the White Mesa Mill. And we are continuing several collaborations with the U.S. government and national laboratories on various rare earth initiatives, including being granted a $1.75 million contract by the U.S. Department of Energy to perform studies that complement our work to develop rare earth separation capabilities at the White Mesa Mill. We continue to believe Energy Fuels has distinct advantages in the rare earth sector. Monazite ore has superior distributions of the high-value magnetic rare earths, including NdPr and “heavy” rare earths, versus most other rare earth minerals mined around the world, and monazite is currently produced as a byproduct of existing heavy mineral sand operations. We are also taking steps to utilize licensed and existing facilities at the White Mesa Mill to process the monazite into value-added products. This is a highly capital efficient initiative.

“While we are obviously extremely excited about the potential for rare earths, our core business remains uranium production, and by almost any metric, including a successful track-record of past and current uranium production, experience in both ISR and conventional uranium mining, existing licensed and constructed processing capacity, U.S.-origin inventory, recycling capabilities, and the like, Energy Fuels is clearly the leading U.S. uranium company as well. We are particularly excited by actions the Biden Administration is taking to address climate change and support nuclear energy. The U.S. gets 20% of all of our electricity, and 55% of our carbon-free electricity, from nuclear. Meeting the President’s climate goals will require preserving America’s existing fleet of nuclear reactors, while quickly deploying the next generation of reactors. And global policies, including those in Europe and China, are supporting nuclear power to achieve carbon reduction goals. We remain ready to supply U.S.-origin uranium for these initiatives.

“At the same time, we are transforming our company into ‘America’s Critical Mineral Hub’, with the main focus being on the White Mesa Mill in Utah. While nearly all current and future nuclear reactors are fueled by uranium, other clean energy and advanced technologies, including electric vehicles renewable energy and batteries, require other critical minerals that Energy Fuels produces. A robust market for responsibly produced, American clean energy products and technologies, made by American workers, is possible in the U.S. How amazing would it be for electric vehicles to be built in America using rare earth products manufactured in America; and for those EVs to be charged using carbon-free, next generation American nuclear technologies fueled by American uranium and nuclear fuel, along with renewable energy systems using American rare earth products? Energy Fuels’ White Mesa Mill in Utah can help this vision become a reality. To say these are exciting times for our company would be the understatement of my lifetime.”

Webcast on Monday, May 17, 2021 at 4:00 pm ET (2:00 pm MT):

Energy Fuels will be hosting a video webcast Monday, May 17, 2021 at 4:00 pm ET (2:00 pm MT) to discuss its Q1-2021 financial results and corporate initiatives. To join the webcast, please click on the link below to access the presentation and the viewer-controlled webcast slides:

Energy Fuels’ Q1-2021 Results

If you would like to participate in the webcast and ask questions, please dial (888) 664-6392 (toll free in the U.S. and Canada). 

A link to a recorded version of the proceedings will be available on the Company’s website shortly after the webcast by calling (888) 390-0541 (toll free in the U.S. and Canada) and by entering the code 764688#. The recording will be available until May 31 ,2021.

Selected Summary Financial Information:




$000’s, except per share data

Three months ended
March 31, 2021

Three months ended
March 31, 2020

Total revenues

$

353

$

393

Gross profit (loss)

353

(685)

Operating loss

(8,847)

(7,806)

Net loss attributable to the company

(10,908)

(5,657)

Basic and diluted loss per share

(0.08)

(0.05)


As at March 31,

2021

As at December 31,
2020

Financial Position:



Working capital

$

60,365

$

40,158

Property, plant and equipment, net

23,457

23,621

Mineral properties, net

83,539

83,539

Total assets

207,219

183,236

Total long-term liabilities

13,581

13,376

Operations Update and Outlook for the Quarter Ending March 31, 2021:

Overview

In response to the proposed establishment of a strategic national U.S. Uranium Reserve program, the Company is evaluating activities aimed towards increasing uranium production at all or some of our production facilities, including the currently operating White Mesa Mill, as well as the Alta Mesa ISR Facility, the Nichols Ranch ISR Facility, the La Sal Complex and Pinyon Plain Mine, which are currently on standby.

During 2021, the Company expects to recover uranium at the White Mesa Mill from pond-returns and from alternate feed materials. The Company also expects to recover uranium and produce mixed REE carbonate from natural monazite ore during 2021, subject to successful ramp-up. The vanadium pond-return campaign that was conducted in 2019 was brought to a close in early 2020. The Company does not plan to extract and/or recover any amounts of uranium of any significance from its Nichols Ranch Project in 2021, which was placed on standby in the second quarter of 2020 due to the depletion of its existing wellfields. Uranium recovery is expected to be maintained at reduced levels, as a result of current uranium market conditions, until such time when market conditions improve sufficiently.

The Company is also seeking new sources of revenue, including its emerging REE business, as well as new sources of alternate feed materials and new fee processing opportunities at the White Mesa Mill that can be processed under existing market conditions (i.e., without reliance on current uranium sales prices). The Company will also continue its support of U.S. governmental activities to support the U.S. uranium mining industry, including the proposed establishment of a U.S. Uranium Reserve. In addition, the Company is in discussions to potentially sell certain of its non-core properties, although there are currently no binding offers, and there can be no assurance that a sale will be completed or that we will be successful in completing a sale on acceptable terms.

Extraction and Recovery Activities Overview

During the quarter ended March 31, 2021, the Company did not recover significant quantities of U3O8. The Company expects to recover approximately 30,000 to 60,000 pounds of U3O8 in the year ending December 31, 2021 for its own account. In 2021, the Company also expects to produce approximately 2,000 to 3,000 tons of mixed REE carbonate at the mill, containing approximately 1,000 to 1,600 tons of total rare earth oxides (“TREO“). The Company expects to produce no vanadium during 2021.

The Company has strategically opted not to enter into any uranium sales commitments for 2021. Therefore, subject to the proposed establishment of a U.S. Uranium Reserve and general market conditions, all 2021 uranium production is expected to be added to existing inventories, which inventories are expected to total approximately 720,000 to 750,000 pounds of U3O8 at year-end. Subject to any actions the Company may take in response to the proposed establishment of a U.S. Uranium Reserve or improvements in general market conditions, both ISR and conventional uranium extraction and/or recovery is expected to continue to be maintained at reduced levels until such time that improvements in uranium market conditions are observed or suitable sales contracts can be entered into. All V2O5 inventory is expected to be sold on the spot market if prices rise sufficiently above current levels, but otherwise maintained in inventory. The Company expects to sell all or a portion of its mixed REE carbonate to global separation facilities and/or to stockpile it for future separation at the Mill or elsewhere.

ISR Activities

The Company expects to produce insignificant quantities of U3O8 in the year ending December 31, 2021 from Nichols Ranch.

Until such time as improvement in uranium market conditions is observed, the proposed U.S. Uranium Reserve is established, and/or suitable sales contracts can be procured, the Company expects to maintain the Nichols Ranch Project on standby and defer development of further wellfields and header houses. The Company currently holds 34 fully permitted, undeveloped wellfields at Nichols Ranch, including four additional wellfields at the Nichols Ranch wellfields, 22 wellfields at the adjacent Jane Dough wellfields, and eight wellfields at the Hank Project, which is fully permitted to be constructed as a satellite facility to the Nichols Ranch Plant.

The Company expects to continue to keep the Alta Mesa Project on standby until such time as improvements in uranium market conditions are observed, the proposed U.S. Uranium Reserve is established, and/or suitable sales contracts can be procured.

Conventional Activities Conventional Extraction and Recovery Activities

During the quarter ended March 31, 2021, the White Mesa Mill did not recover any quantities of U3O8, focusing instead on developing its REE recovery business. However, during the remainder of 2021, the Company expects to recover approximately 30,000 to 60,000 pounds of U3O8 at the White Mesa Mill, including uranium recovered through the processing of REE- and uranium-bearing natural monazite ore. The Company also expects to produce approximately 2,000 to 3,000 tons of mixed REE carbonate at the Mill, containing approximately 1,000 to 1,600 tons TREO. The Company currently has approximately 150,000 pounds of U3O8 contained in stockpiled alternate feed material and ore inventory that can be recovered in the future for the proposed U.S. Uranium Reserve or as general market conditions warrant. In addition, there remains an estimated 1.5-3 million pounds of solubilized recoverable V2O5 inventory remaining in the Mill’s tailings facility awaiting future recovery, as market conditions may warrant.

Conventional Standby, Permitting and Evaluation Activities

During the quarter ended March 31, 2021, standby and environmental compliance activities occurred at the Pinyon Plain Project.

The Company is selectively advancing certain permits at its other major conventional uranium projects, such as the Roca Honda Project, a large, high-grade conventional project in New Mexico. The Company will also maintain required permits at the Company’s conventional projects, including the Sheep Mountain Project, La Sal Complex, and the Whirlwind mine. In addition, the Company will continue to evaluate the Bullfrog Property at its Henry Mountains Project. The Company is also in discussions to potentially sell the Tony M, Daneros, Rim and other non-core conventional assets.

Uranium Sales

During the quarter ended March 31, 2021, the Company completed no sales of uranium. The Company currently has no remaining contracts, and therefore all existing uranium inventory and future production is fully unhedged to future uranium price changes.

Vanadium Sales

During the quarter ended March 31, 2020, the Company completed no sales of vanadium. The Company expects to sell finished vanadium product when justified into the metallurgical industry, as well as other markets that demand a higher-purity product, including the aerospace, chemical, and potentially the vanadium battery industries.

Rare Earth Sales

The Company commenced ramping-up commercial production of a mixed REE carbonate in March 2021. Subject to successful ramp-up of production of a salable product during 2021, the Company expects to sell some or all of this intermediate REE product to Neo’s Silmet separation facility in Europe and potentially to other REE separation facilities outside the U.S. To the extent not sold, the Company expects to stockpile mixed REE carbonate at the Mill for future separation and other downstream REE processing at the Mill or elsewhere.

The Company also continues to pursue new sources of revenue, including additional alternate feed materials and other sources of feed for the White Mesa Mill.

About Energy Fuels: Energy Fuels is a leading U.S.-based uranium mining company, supplying U3O8 to major nuclear utilities. The Company also produces vanadium from certain of its projects, as market conditions warrant, and expects to commence commercial production of REE carbonate in 2021. Its corporate offices are in Lakewood, Colorado near Denver, and all of its assets and employees are in the United States. Energy Fuels holds three of America’s key uranium production centers: the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (“ISR”) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. today, has a licensed capacity of over 8 million pounds of U3O8 per year, and has the ability to produce vanadium when market conditions warrant, as well as REE carbonate from various uranium-bearing ores. The Nichols Ranch ISR Project is currently on standby and has a licensed capacity of 2 million pounds of U3O8 per year. The Alta Mesa ISR Project is also currently on standby. In addition to the above production facilities, Energy Fuels also has one of the largest NI 43-101 compliant uranium resource portfolios in the U.S. and several uranium and uranium/vanadium mining projects on standby and in various stages of permitting and development. The primary trading market for Energy Fuels’ common shares is the NYSE American under the trading symbol “UUUU,” and the Company’s common shares are also listed on the Toronto Stock Exchange under the trading symbol “EFR.” Energy Fuels’ website is www.energyfuels.com.

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain “Forward Looking Information” and “Forward Looking Statements” within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: production and sales forecasts; costs of production; any expectation that the Company will continue to be ready to supply uranium into the proposed U.S. Uranium Reserve once it is established; scalability, and the Company’s ability and readiness to re-start, expand or deploy any of its existing projects or capacity to respond to any improvements in uranium market conditions or in response to the proposed Uranium Reserve; any expectation regarding any remaining dissolved vanadium in the White Mesa Mill’s tailings facility solutions; the ability of the Company to secure any new sources of alternate feed materials or other processing opportunities at the White Mesa Mill; expected timelines for the permitting and development of projects; the Company’s expectations as to longer term fundamentals in the market and price projections; any expectation that the Company will maintain its position as a leading uranium company in the United States; any expectation that the proposed Uranium Reserve will be implemented and if implemented the manner in which it will be implemented and the timing of implementation; any expectation with respect to timelines to production; any expectation that the White Mesa Mill will be successful in producing REE Carbonate on a commercial basis; any expectation that Neo will be successful in separating the White Mesa Mill’s REE Carbonate on a commercial basis; any expectation that Energy Fuels will be successful in developing U.S. separation, or other value-added U.S. REE production capabilities at the White Mesa Mill, or otherwise; any expectation that the Company and Neo will be successful in jointly developing a fully integrated U.S.-European REE supply chain; any expectation that the Company will be successful in building fully integrated U.S REE production capabilities in the future; any expectation with respect to the future demand for REEs; any expectation with respect to the quantities of monazite ore to be acquired by Energy Fuels, the quantities of REE Carbonate to be produced by the White Mesa Mill or the quantities of contained TREO in the Mill’s REE carbonate; any expectation that Neo and Energy Fuels will be successful in completing definitive agreements and hence proceeding with their agreement in principle; any expectation that the Company will enter into definitive agreements with Hyperion Metals Limited for the potential future supply of natural monazite sands from the Titan heavy mineral sand project, or that the Titan project will commence production and be capable of supplying monazite sands to the Company; any expectation as to the results of the feasibility study on the production of REE products from natural coal-based resources, or that the work to be performed in connection with the feasibility study will complement the Company’s work to develop rare earth separation capabilities at the White Mesa Mill; any expectation that the Company has distinct advantages in the rare earth sector or that the Company’s REE initiative will be a highly capital efficient initiative; any expectation that the Company will be successful in transforming itself into America’s Critical Mineral Hub; any expectation as to the outcome of President Biden’s actions to address climate change and support nuclear energy, or their impacts on the Company, if any; any expectation that global policies will support nuclear power to achieve carbon reduction goals; any expectation that a robust market for responsibly-produced, American clean energy products and technologies, made by American workers, is possible in the U.S.; and any expectation that the Company will successfully sell certain of its non-core properties on acceptable terms or at all. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans,” “expects,” “does not expect,” “is expected,” “is likely,” “budgets,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” “does not anticipate,” or “believes,” or variations of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur,” “be achieved” or “have the potential to.” All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; the availability of sources of alternate feed materials and other feed sources for the White Mesa Mill; competition from other producers; public opinion; government and political actions; the appropriations for the proposed Uranium Reserve not being allocated to that program and the Uranium Reserve not being implemented; the manner in which the proposed Uranium Reserve, if established, will be implemented; the Company not being successful in selling any uranium into the proposed Uranium Reserve at acceptable quantities or prices, or at all; available supplies of monazite sands; the ability of the White Mesa Mill to produce REE Carbonate to meet commercial specifications on a commercial scale at acceptable costs; the ability of Neo to separate the REE Carbonate produced by the White Mesa Mill to meet commercial specifications on a commercial scale at acceptable costs; market factors, including future demand for REEs; the ability of Neo and Energy Fuels to finalize definitive agreements; and the other factors described under the caption “Risk Factors” in the Company’s most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml, on SEDAR at www.sedar.com, and on the Company’s website at www.energyfuels.com. Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.

SOURCE Energy Fuels Inc.

For further information: Investor Inquiries: Energy Fuels Inc., Curtis Moore, VP – Marketing and Corporate Development, (303) 974-2140 or Toll free: (888) 864-2125, investorinfo@energyfuels.com, www.energyfuels.com

Capstone Green Energy Corporation (CGRN)(CGRN:CA) – Capstone Receives Hydrogen Microturbine Order

Thursday, May 13, 2021

Capstone Green Energy Corporation (CGRN)(CGRN:CA)
Capstone Receives Hydrogen Microturbine Order

Capstone Green Energy Corp is the producer of low-emission microturbine systems. The company develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications. Capstone Turbine’s products include onboard generation for hybrid electric vehicles; conversion of oil field and biomass waste gases into electricity; combined heat, power, and chilling solutions; capacity addition; and standby power.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Capstone Green Energy (formerly Capstone Turbine) received an order for a microturbine intended to run on hydrogen. The order by Blue Economy CRC, a cooperative research center working in partnership to develop Australia’s aquaculture industry, represents the first hydrogen microturbine for Capstone. Capstone only recently released its first commercial Combined Heat and Power product, which runs on 10% hydrogen and 90% natural gas. Capstone is testing a 30% hydrogen unit and has begun research on a 100% hydrogen unit.

    The unit will use hydrogen generated from renewable sources.  Blue Economy and partners will use hydrogen from solar, wind and wave sources to feed the microturbine. It will be part of a microgrid that will support offshore research and aquaculture for food production. It will allow the potential for 100% hydrogen-fuel-based power generation in the future. The initial stage is designed to provide …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Gevo Reports First Quarter 2021 Financial Results


Gevo Reports First Quarter 2021 Financial Results

Gevo to Host Conference Call Today at 4:30 p.m. EDT/2:30 p.m. MDT

ENGLEWOOD,
Colo. – May 13, 2021
– Gevo, Inc. (NASDAQ: GEVO) today announced financial results for the first quarter of 2021 and recent corporate highlights.

Recent Corporate Highlights

  • In January 2021, Gevo announced the plans for its innovative, world-class and novel Net-Zero 1 Project (“Net-Zero 1”) to be located in Lake Preston, South Dakota. Net-Zero 1 is expected to produce ~45MGPY of energy dense liquid hydrocarbons that, when burned as transportation fuels, should have a net-zero greenhouse gas footprint across the whole of the life cycle based on Argonne National Laboratories’ GREET model. The hydrocarbons would be sold into the gasoline and jet fuel markets under existing take-or-pay contracts. Net-Zero 1 is being designed to reduce or eliminate the fossil-based energy footprint to run the production facility. In addition, Net-Zero 1 is expected to produce ~300 million pounds per year of protein rich animal feed, and about 30 million pounds per year of corn oil. Net-Zero 1 is expected to produce its own biogas to be used to heat the production facility and provide a portion of the electricity needed to power the production facility. In addition, wind power is being developed and is expected to supply another portion of the electricity needed to run the production facility. Green hydrogen will also be produced from the renewable electricity as part of the production processes at Net-Zero 1. Net-Zero 1 is also expected to have its own water treatment plant to further improve the environmental footprint.

 

  • Front-End Engineering Design (“FEED”) work for Net-Zero 1 is on track and is expected to be completed in December 2021.

 

  • Gevo was on target and successfully broke ground and began construction of its renewable natural gas (“RNG”) project in Northwest Iowa (the “RNG Project”) in late April 2021. Start-up of the RNG Project is expected in early 2022. Gevo expects the RNG Project to generate $9-16 million of cash for Gevo on an annual basis beginning in late 2022.
  • In February 2021, Gevo signed an amendment to its Fuel Sales Agreement with Scandinavian Airlines System (“SAS”) for sustainable aviation fuel. The volume in the amendment is 5 million gallons per year, and is a “take-or-pay” contract worth ~$100 million of revenue across the life of the contract. This volume for the SAS contract is expected to be supplied by Gevo’s second Net-Zero Project beginning in 2024.
  • In January 2021, Gevo successfully completed a registered direct offering of 43.7 million shares of common stock at $8.0 per share. Total proceeds were $321.9 million, net of placement agent fees and other estimated offering expenses payable by the Company.
  • In January 2021, Gevo raised $135.8 million, net of fees, by issuing 24.4 million shares of common stock through its At-the-Market offering program.
  • In April 2021, Gevo closed a $68,155,000 “Green Bond” private activity bonds offering (the “Green Bond Offering”) to finance the construction of its RNG Project. The RNG Project will generate RNG captured from dairy cow manure. Gevo fully funded the RNG Project’s development costs and 100% of its equity capital from cash reserves. Gevo received approximately $9.3 million in reimbursement for development, long lead equipment, and financing costs incurred during the development period upon closing of the Green Bond Offering.

2021 First Quarter Financial Highlights

  • Ended the quarter with cash and cash equivalents of $525.3 million compared to $78.3 as of the end Q4 2020
  • Revenue of $0.1 million for the quarter compared to $3.8 million in Q1 2020
  • Loss from operations of ($9.9) million for the quarter compared to ($8.0) million in Q1 2020
  • Non-GAAP cash EBITDA loss[1] of ($7.8) million for the quarter compared to ($6.2) million in Q1 2020
  • Net loss per share of ($0.05) for the quarter compared to ($0.64) in Q1 2020
  • Non-GAAP adjusted net loss per share[2] of ($0.05) for the quarter compared to ($0.59) in Q1 2020

 

Commenting on the first quarter of 2021 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said “the FEED engineering work is going well and is on schedule. The RNG plant is expected to be online in 2022 and begin to generate cash then. The interest in our product and the customer pipeline has increased significantly, which is extremely positive. Overall, things are going very well and we are successfully executing our business plans.”

 

First Quarter 2021 Financial Results

Revenue for the three months ended March 31, 2021 was $0.1 million compared with $3.8 million in the same period in 2020.

During the three months ended March 31, 2021, hydrocarbon revenue was
nil compared with $0.1 million in the same period in 2020.
Hydrocarbon sales decreased because of lower production volumes at Gevo’s demonstration plant at the South Hampton Resources, Inc. facility in Silsbee, Texas (the “South Hampton Facility”). Gevo’s hydrocarbon revenue is comprised of sales of sustainable aviation fuel and renewable premium gasoline.

During the three months ended March 31, 2021, no revenue was derived at Gevo’s production facility in Luverne, Minnesota (the “Luverne Facility”) related to ethanol sales and related products, a decrease of approximately $3.7 million from the same period in 2020. As a result of COVID-19 and in response to an unfavorable commodity environment, Gevo terminated its production of ethanol and distiller grains in March 2020. Gevo’s Luverne Facility is not currently producing ethanol but is performing maintenance in preparation for isobutanol production expected to begin in June 2021. Currently, the South Hampton Facility is not producing renewable premium gasoline or jet fuel. Gevo expects to produce isobutanol in intermittent campaigns during 2021 to supply the South Hampton Facility so that renewable premium gasoline or jet fuel can be produced in 2021.

Cost of goods sold was $2.0 million for the three months ended March 31, 2021, compared with $8.1 million in the same period in 2020, primarily as a result of terminating ethanol production due to COVID-19 and in response to an unfavorable commodity environment. Cost of goods sold included approximately $0.9 million associated with the maintenance of the Luverne Facility and approximately $1.1 million in depreciation expense for the three months ended March 31, 2021.

Gross loss was $1.9 million for the three months ended March 31, 2021, compared with a $4.3 million gross loss in the same period in 2020.

Research and development expense increased by $0.8 million during the three months ended March 31, 2021 compared with the same period in 2020, due primarily to an increase in personnel and consultant expenses.

Selling, general and administrative expense increased by $1.2 million during the three months ended March 31, 2021, compared with the same period in 2020, due primarily to an increase in personnel and consulting expenses.

Preliminary stage project costs increased by $2.6 million during the three months ended March 31, 2021, compared with the same period in 2020, due primarily to increased consulting and research and development expenses related to our RNG and Net-Zero projects.

Loss from operations in the three months ended March 31, 2021 was $9.9 million, compared with a $8.0 million loss from operations in the same period in 2020.

Non-GAAP cash EBITDA loss[3] in the three months ended March 31, 2021 was $7.8 million, compared with a $6.2 million non-GAAP cash EBITDA loss in the same period in 2020.

Interest expense in the three months ended March 31, 2021 was nil, a decrease of $0.5 million as compared to the same period in 2020, due to the conversion of all of Gevo’s 12% convertible senior secured notes due 2020/2021 to common stock during 2020.

In the three months ended March 31, 2021, Gevo recognized net non-cash loss totaling $0.1 million due to changes in the fair value of certain of its financial instruments, such as warrants.

Gevo incurred a net loss for the three months ended March 31, 2021 of $10.1 million, compared with a net loss of $9.3 million during the same period in 2020. Non-GAAP adjusted net loss[4] for the three months ended March 31, 2020 was $10.0 million, compared with a non-GAAP adjusted net loss of $8.5 million during the same period in 2020.

Cash at March 31, 2021 was $525.3 million compared to $78.3 as of the end Q4 2020.

Webcast
and Conference Call Information

Hosting today’s conference call at 4:30 p.m. EDT (2:30 p.m. MDT) will be Dr. Patrick R. Gruber, Chief Executive Officer, L. Lynn Smull, Chief Financial Officer, Carolyn M. Romero, Chief Accounting Officer, and Geoffrey T. Williams, Jr., Vice President – General Counsel & Secretary. They will review Gevo’s financial results and provide an update on recent corporate highlights.

To participate in the conference call, please dial 1 (833) 729-4776 (inside the U.S.) or 1 (830) 213-7701 (outside the U.S.) and reference the access code 6295166# or through the event weblink https://edge.media-server.com/mmc/p/ocbho96s.

A replay of the call and webcast will be available two hours after the conference call ends on May 13, 2021. To access the replay, please dial 1 (855) 859-2056 (inside the U.S.) or 1 (404) 537-3406 (outside the U.S.) and reference the access code 6295166#. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

 

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel, and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full lifecycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their lifecycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

 

Gevo believes that Argonne National Laboratory GREET model is the best available standard of scientific based measurement for life cycle inventory or LCI.

 

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Gevo’s business development activities, Gevo’s Net-Zero Projects, Gevo’s RNG Project, the FEED engineering work, Gevo’s offtake agreements, Gevo’s plans to develop its business, Gevo’s ability to successfully construct and finance its operations and growth projects, Gevo’s ability to achieve cash flow from its planned projects, the ability of Gevo’s products to contribute to lower greenhouse gas emissions, particulate and sulfur pollution and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020 and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Non-GAAP
Financial Information

This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP cash EBITDA loss, non-GAAP adjusted net loss and non-GAAP adjusted net loss per share. Non-GAAP cash EBITDA loss excludes depreciation and amortization and non-cash stock-based compensation. Non-GAAP adjusted net loss and adjusted net loss per share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below.

 



[1] Cash
EBITDA loss is a non-GAAP measure calculated by adding back depreciation and
amortization and non-cash stock compensation to GAAP loss from operations. A
reconciliation of cash EBITDA loss to GAAP loss from operations is provided in
the financial statement tables following this release.

[2]
Adjusted net loss per share is a non-GAAP measure calculated by adding back
non-cash gains and/or losses recognized in the quarter due to the changes in
the fair value of certain of our financial instruments, such as warrants,
convertible debt and embedded derivatives, to GAAP net loss per share. A
reconciliation of adjusted net loss per share to GAAP net loss per share is
provided in the financial statement tables following this release.

[3]
Cash EBITDA loss is a non-GAAP measure calculated by adding back
depreciation and amortization and non-cash stock compensation to GAAP loss from
operations. A reconciliation of cash EBITDA loss to GAAP loss from operations
is provided in the financial statement tables following this release.

[4]
Adjusted net loss is a non-GAAP measure calculated by adding back non-cash
gains and/or losses recognized in the quarter due to the changes in the fair
value of certain of our financial instruments, such as warrants, convertible
debt and embedded derivatives, to GAAP net loss. A reconciliation of adjusted
net loss to GAAP net loss is provided in the financial statement tables
following this release.

Release – Capstone Green Energy Receives Order for a Microturbine Intended to Run on Hydrogen for a Remote Offshore Demonstration Project


Capstone Green Energy (NASDAQ:CGRN) Receives Order for a Microturbine Intended to Run on Hydrogen for a Remote Offshore Demonstration Project

Renewable Energy System Will Support Sustainable Seafood
Production in Tasmania, Australia

VAN NUYS, CA / ACCESSWIRE
/ May 12, 2021 /
 Capstone Green Energy Corporation (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) formerly Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) (“Capstone” or the “Company”), a global leader in carbon reduction and on-site resilient green energy solutions, announced today that it has received an order for a microturbine intended to run on hydrogen. Secured by Capstone partner Optimal Group, the order for Blue Economy CRC is an integral part of an offshore DC-power based microgrid that will support offshore research and aquaculture for food production.

Blue Economy CRC is a cooperative research center in partnership with national and international universities and industry that was established to bring together sustainable seafood production and renewable energy in order to further develop Australia’s aquaculture industry. Supporting the organization’s mission by providing emissions-free electricity, the microgrid will manage the energy generated from readily available offshore, renewable resources, including solar, wind, and waves, and use it to produce hydrogen via a 700 kW electrolyzer. The hydrogen produced by the ITM Power electrolyzer will be connected to the microturbine, which will provide power on demand. The result is expected to be a safe and clean microgrid that serves as an opportunity to showcase the environmental benefits and flexibility of green hydrogen as an energy storage medium and fuel source for resilient power generation. Beyond offering the potential for 100% hydrogen-fuel-based power generation, the microturbine was an ideal fit due to its ability to operate at partial loads while matching its output to the demands of the rest of the microgrid system.

The initial stage of the project aims to provide proof of concept for a DC microgrid combined with multiple renewable sources. Subsequently, a full marinization and commercialization of the system will be completed to support remote, offshore operation.

Capstone Green Energy continues to expand and develop its new Hydrogen Solutions business line. The Company recently released its first commercially available hydrogen-based Combined Heat and Power (CHP) product, which can safely run on a 10% hydrogen – 90% natural gas mix, and the Company is targeting a commercial release of 30% hydrogen – 70% natural gas mix product by March 31, 2022. In addition, through its Research and Development partnership with Argonne National Laboratory, the Company is currently testing a 70% hydrogen – 30% natural gas configuration. Argonne National Laboratory is a national science and technology research laboratory operated by the University of Chicago Argonne LLC for the United States Department of Energy. The nation’s first national laboratory, Argonne conducts leading-edge basic and applied scientific research in virtually every scientific discipline. This particular demonstration project is intended to run on 100% hydrogen.

“This is truly an exciting demonstration project to be part of and an important technical building block as we continue to move towards a commercial 100% hydrogen CHP and microgrid product,” said Darren Jamison, President and Chief Executive Officer of Capstone Green Energy. “Capstone’s ability to provide a microturbine that is intended to be 100% hydrogen-fueled marks an important evolution in our solution offerings as we continue to offer ever-more sustainable configurations for our customers,” added Mr. Jamison.

“This is a project of many firsts. It will be the largest hydrogen electrolyzer in Tasmania and amongst the largest in Australia,” said Craig Dugan, Chief Executive Officer of Optimal Group. “The first hydrogen Capstone microturbine to be deployed in Tasmania and only the second in Australia, indeed worldwide. On the current research program schedule, it should be the first hydrogen microgrid to be installed offshore.” Mr. Dugan added, “Optimal is delighted to be a part of the ground-breaking Blue Economy CRC research program and to be selected to provide the microturbine, electrolyzer, and DC microgrid.”

About Capstone Green Energy
Capstone Green Energy (www.CapstoneGreenEnergy.com) (NASDAQ:CGRN) is a leading provider of customized microgrid solutions and on-site energy technology systems focused on helping customers around the globe meet their environmental, energy savings, and resiliency goals. Capstone Green Energy focuses on four key business lines. Through its Energy as a Service (EaaS) business, it offers rental solutions utilizing its microturbine energy systems and battery storage systems, comprehensive Factory Protection Plan (FPP) service contracts that guarantee life-cycle costs, as well as aftermarket parts. Energy Conversion Products are driven by the Company’s industry-leading, highly efficient, low-emission, resilient microturbine energy systems offering scalable solutions in addition to a broad range of customer-tailored solutions, including hybrid energy systems and larger frame industrial turbines. The Energy Storage Products business line designs and installs microgrid storage systems creating customized solutions using a combination of battery technologies and monitoring software. Through Hydrogen Energy Solutions, Capstone Green Energy offers customers a variety of hydrogen products, including the Company’s microturbine energy systems.

For customers with limited capital or short-term needs, Capstone offers rental systems; for more information, contact: rentals@CGRNenergy.com. To date, Capstone has shipped over 10,000 units to 83 countries and estimates that, in FY21, it saved customers over $217 million in annual energy costs and approximately 397,000 tons of carbon. Total savings over the last three years are estimated at 1,115,100 tons of carbon and $698 million in annual energy savings.

For more information about the Company, please visit: www.CapstoneGreenEnergy.com. Follow Capstone Green Energy on TwitterLinkedInInstagramFacebook, and 
YouTube.

Cautionary Note Regarding
Forward-Looking Statements

This release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations for green initiatives and execution on the Company’s growth strategy and other statements regarding the Company’s expectations, beliefs, plans, intentions, and strategies. The Company has tried to identify these forward-looking statements by using words such as “expect,” “anticipate,” “believe,” “could,” “should,” “estimate,” “intend,” “may,” “will,” “plan,” “goal” and similar terms and phrases, but such words, terms and phrases are not the exclusive means of identifying such statements. Actual results, performance and achievements could differ materially from those expressed in, or implied by, these forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the following: the ongoing effects of the COVID-19 pandemic; the availability of credit and compliance with the agreements governing the Company’s indebtedness; the Company’s ability to develop new products and enhance existing products; product quality issues, including the adequacy of reserves therefor and warranty cost exposure; intense competition; financial performance of the oil and natural gas industry and other general business, industry and economic conditions; the Company’s ability to adequately protect its intellectual property rights; and the impact of pending or threatened litigation. For a detailed discussion of factors that could affect the Company’s future operating results, please see the Company’s filings with the Securities and Exchange Commission, including the disclosures under “Risk Factors” in those filings. Except as expressly required by the federal securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, changed circumstances or future events or for any other reason.

CONTACT:
Capstone Green Energy
Investor and investment media inquiries:
818-407-3628

ir@CGRNenergy.com

SOURCE: Capstone Green Energy Corporation

Oil and Natural Gas Pipelines are Taken for Granted – Here are Ten Facts You Should Know


image credit: Stian Olsen (flickr.com)


Oil and Natural Gas Pipelines are Taken for Granted – Here are Ten Facts You Should Know

Pipelines have been in the news lately.

There’s news of the 21 state lawsuit to keep the Keystone XL pipeline project moving forward, and now The Colonial Pipeline, a 2.5-million-barrel-per-day transport system that was shut down after a cyberattack on May 7.

Pipelines impact our daily lives by delivering oil, gas, jet fuel, diesel, and other refined products. Yet most of us know little about them and the businesses they serve, along with the business of transportation and distribution of liquids that travel through pipelines.

Below are ten information bits to help improve understanding of this seldom thought of, yet critical business.

Millions of Miles of Pipelines The combined length could reach the moon and back three times.

The U.S. has more than 1,382,569 million miles of pipeline that moves trillions of cubic feet of natural gas and hundreds of billions of tons of liquid petroleum products each year.

Different Pipelines for Different
Products
There are three types of pipelines. Crude oil is collected and transported by pipeline to refineries. Natural gas is pumped from wells to the refineries using a different type of pipeline. Once oil and natural gas have been refined into other products, they are then distributed for use by the third type of pipeline.

Cleaned by PIGs Pipeline Inspection Gauges (PIGs) are devices that travel through pipelines to inspect the pipes interior and clean debris. This is part of the preventative measures to get an early warning on any risks to the pipeline’s integrity.

Safest  Transportation Method  Transportation by rail is 4.5 times more likely to experience an accident while moving natural resources (according to the Fraser Institute).

The National Transportation and Safety Board ranks pipelines as one of the safest ways of transporting oil and natural gas.

Pipelines Vary in Width Determining the appropriate width for a pipeline depends on pressures, temperatures and volumes being transported. Pipelines that transport oil and natural gas range anywhere from two inches to four feet in diameter.

Pipelines Have a Long History The first known use of pipe to transport oil started soon after the first commercial oil well was built back in 1859 by “Colonel” Edwin Drake (Titusville, Pennsylvania).

Pipeline Capital of the World The city of Cushing, Oklahoma, has one of the largest pipeline hubs in the world. Approximately 50 million barrels of crude oil flow into its distribution network each day, with a maximum potential of 80 million barrels. The city has hundreds of tanks that hold more than 2 billion gallons of crude oil in reserve.

Drones, Sealants, and Fiber-Optic
Technology
Outside the pipeline, supplementing physical inspection by workers, drones equipped with cameras and advanced sensors are used to inspect above-ground pipelines. Current sealant technology is used on pipe exteriors to prevent corrosion, while fiber optic cables run alongside the pipeline to detect any threats to the pipes integrity.

Sacrificial Metal Metal Pipelines are protected by an electrical shield called cathodic protection, and a current is passed through an electric line connecting the pipeline to a secondary metal. This method causes corrosion to occur on the secondary (sacrificial) metal rather than the iron or steel pipe.

The U.S. is No. 1 in the World The U.S. has more petroleum pipelines than any other country with 1,233,000 miles of piped natural gas transport and 149,570 miles in petroleum products. In second place is Russia (101,825 miles) followed by Canada (62,137 miles).

 

Opportunity

Energy Services of America (ESOA) is a publicly-traded company engaged in the construction, replacement, and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies. You can discover more about ESOA by attending the no-cost virtual roadshow by following the links below.

Virtual Road Show Series – Thursday May 13 @ 1:00pm EDT

Join Energy Services of America CEO Douglas Reynolds for this exclusive corporate presentation, followed by a Q & A session moderated by Poe Fratt, Noble’s senior research analyst, featuring questions taken from the audience. Registration is free and open to all investors, at any level.
Register Now  |  View All Upcoming Road Shows

InPlay Oil (IPOOF)(IPO:CA) – 2021-1Q Operating Results Leverage Drilling Success

Friday, May 07, 2021

InPlay Oil (IPOOF)(IPO:CA)
2021-1Q Operating Results Leverage Drilling Success

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    First quarter production results surpassed elevated expectations. Results were generally in line with our elevated expectations. Production levels rose to 4,965 BOE/day, up 17% q-t-q and above our 4,809 estimate. Wells drilled in the Pembina Basin last year are producing well above expectations leading management to shift drilling to that area (including 3 wells drilled this quarter) where the company made a recent tuck-in acquisition. The shift is making light oil a larger component of production at a time of high oil prices.

    Realized prices were slightly below expectations.  Realized oil prices were C$55.75/BBL, a sharp rise over previous quarters but below our C$60.49 estimate. Basin discounts were larger than expected and will need to improve in upcoming quarters to meet management’s guidance for the year. Natural gas and NGL prices were in line with expectations. No new hedges were added leaving more than half of …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

InPlay Oil (IPOOF)(IPO:CA) – Now Is a Good Time to Look At InPlay

Thursday, May 06, 2021

InPlay Oil (IPOOF)(IPO:CA)
Now Is a Good Time to Look At InPlay

As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Our price objective was increased 150% last March due to higher energy prices and improved company fundamentals. On March 24th, we raised our P.O. on the shares of IPOOF to $1.50 from $0.60 ($2.00 from $0.45 for the shares of IPO.TO). The increase reflected higher near-term oil prices, lower basin differentials, a better currency exchange rate, decreased operating cost assumptions, improved free cash flow generation and the ability to pay down debt, growth in the company’s proved reserve position, and a shift in valuation metrics with the passing of 2020.

    Since that time, energy prices have moved even higher.  WTI spot prices have risen to approximately $66.50/BBL from $58.56/BBL on March 24th. Western Canada Select (WCS) prices have also risen and now trade near $53/BBL (C$64.60). A $13 differential compares favorably to a differential near $17 at this time last year. Natural gas spot prices are also higher, reaching a current price near $2.95/mcf …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Exploration and Production Review and Outlook – Noble Capital Markets Energy Sector Review – April 2021

Energy Industry – Exploration and Production 2021 Q1 Review and Outlook

Noble Capital Markets Energy Sector Review – April 2021

ENERGY INDUSTRY OUTLOOK

Exploration and Production: 2021-1Q Review and Outlook

Oil Prices

Oil prices continued their upward trend in the first quarter with WTI prices reaching mid-sixties in early March before closing the quarter closer to $60/bbl. Brent oil prices are trading approximately 5% above WTI prices. Improving global economic trends have improved the outlook for oil demand. OPEC, which initiated supply reductions last year, has maintained those reductions despite the improved demand outlook. Near-term, temporary events such as cold weather and the blockage of the SUEZ canal have helped keep spot prices high. The oil future curve is flat with longer-term pricing just below $60/bbl.

Meanwhile, domestic producers have been slow to react to higher oil prices. There are slightly more than half the number of active oil rigs in the United States versus this time last year (324 verses 624) and only 25% of the rigs operating at peak (1600). Note in the graph below how WTI oil prices began rising in the fall of 2020, but the rig count barely responded. International rig counts show a similar story. We are somewhat at a loss to explain the slow supply reaction to higher prices. Perhaps COVID issues are making it difficult to man the crews needed to run rigs. Perhaps producers are wary of supply bottlenecks that pushed oil prices into negative levels last fall. Perhaps producers believe OPEC will punish U.S. producers that expand when prices cross $50/bbl. by opening up supply and driving prices back down below $40/bbl. Whatever the reason, the lack of a supply response has the effect of keeping oil prices above the levels we believe would occur when supply and demand are in balance.

Natural Gas Prices

Natural gas prices followed oil prices up in January and February due to much-publicized cold fronts across the Midwest. The May contract peaked at $3.22/mcf on February 16th. However, prices fell in March when warmer weather took over. Current prices are near $2.60/mcf, close to where they began the quarter. Natural gas futures rise modestly as they stretch into the fall approaching $2.75/mcf. There were 92 gas drilling rigs in operation as of March 26th down from 102 rigs a year ago.

The recent decline in natural gas prices mirrors what can be seen in the natural gas storage numbers. Storage began the winter near full capacity but has fallen sharply in January and February due to cold weather. At current levels, storage is near 5-year averages. As we enter the end of the heating season, there is little chance that levels will move away from average levels.

Energy Stocks

Energy stocks, as measured by the XLE Energy Index, rose alongside oil prices climbing 32% during the quarter. The chart below shows that the performance of energy stocks in comparison to the S&P Composite Index.

Outlook

The rebound in oil prices came faster than expected and is staying higher than we would have expected. We have been adjusting our models to reflect higher prices but are maintaining our long-term oil price forecast of $50 per barrel and $2.50 per mcf. Energy companies should start reporting positive cash flow at these prices and increasing drilling budgets.

Our near-term outlook for energy stocks remains positive. We expect companies to report favorable results for the next few quarters. Longer-term, we have concern that oil demand will be constrained by power generation competition from renewable energy and decreased demand for gasoline and diesel due to a growth in electric vehicles. At the same time, increased supply from OPEC and continued drilling productivity will mean lower energy prices. We recommend investors stay focused on energy companies with solid balance sheets, low operating costs and protected prices.

NOBLE QUARTERLY HIGHLIGHTS

Capstone Green Energy – NasdaqGS: CGRN

Industry: Energy – Green energy; Heavy electrical equipment

Capstone Green Energy (Capstone or CGRN) is a leading producer of microturbine-based low emission energy systems. Microturbines are small combustion turbines that use a variety of fuels such as natural gas, biogas, RNG and hydrogen to generate electricity, thermal energy, and air-conditioning. Microturbines are customizable and efficient, reducing the emission of pollutants and greenhouse gases. Capstone’s microturbines are scalable, and systems range from 30 kilowatts to 10 megawatts. Capstone has shipped nearly 10,000 units to 83 countries.

1st Quarter News Highlights:

March 11, 2021: Capstone Turbine Corp. announces that it continues to expand the range of non-fossil fuels able to power its innovative microturbine based energy solutions. With the signing of a new OEM agreement with Professor Dr. Berg & Kießling GmbH (B+K), Capstone immediately received an order for the first Capstone microturbine kit under the new agreement. The Capstone microturbines will be integrated into the innovative B+K ClinX product. The ClinX product uses renewable sources instead of fossil fuels and thus prevents unnecessary CO2 emissions.

Energy Fuels, Inc. – NYSE American: UUUU

Industry: Energy – Mineral energy; Uranium; Rare earth minerals and metals

Energy Fuels is a U.S.-based uranium mining company, supplying uranium concentrate to major nuclear utilities. The company also produces vanadium from certain of its projects, as market conditions warrant. Energy Fuels owns the White Mesa Mill in Utah, the Nichols Ranch in-situ recovery (ISR) Project in Wyoming, and the Alta Mesa ISR Project in Texas. The White Mesa Mill is the only conventional uranium mill operating in the U.S. and has the ability to produce vanadium when market conditions warrant. Energy Fuels’ common stock trades on the NYSE American under the trading symbol “UUUU” and the Toronto Stock Exchange under the trading symbol “EFR”.

1st Quarter News Highlights:

March 9, 2021: The company announces that the first shipments of natural monazite ore arrived at the Company’s White Mesa Mill (the “Mill”) in Blanding, Utah this past weekend. This material was separated by The Chemours Company at its Offerman Mineral Sand Plant in Georgia and transported by truck to the Mill. Energy Fuels expects to gradually ramp-up production of an intermediate rare earth element (“REE”) product, called a “mixed REE carbonate.” This product will then advance to REE separation, which is the next stage in the REE value chain. Energy Fuels also expects to recover the uranium in the ore, which will be used as fuel for the generation of clean, carbon-free nuclear energy.

InPlay Oil – OTCQX: IPOOF

Industry: Energy – Oil and gas; Exploration and production

InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQZ Exchange under the symbol IPOOF.

1st Quarter News Highlights:

March 23, 2021: InPlay Oil held a webcast for the investment community where management expressed its desire to pay down debt and invest in wells with high returns. Management expressed their belief that energy prices are in the sweet spot for the company in the low $60/BBL and believes operating and drilling costs will continue to decline with a decrease in competition.

DOWNLOAD THE FULL REPORT (PDF)

Noble Capital Markets Energy Newsletter Q1 2021

This newsletter was prepared and provided by Noble Capital Markets, Inc. For any questions and/or requests regarding this newsletter, please contact >Francisco Penafiel

DISCLAIMER

All statements or opinions contained herein that include the words “ we”,“ or “ are solely the responsibility of NOBLE Capital Markets, Inc and do not necessarily reflect statements or opinions expressed by any person or party affiliated with companies mentioned in this report Any opinions expressed herein are subject to change without notice All information provided herein is based on public and non public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on their own appraisal of the implications and risks of such decision This publication is intended for information purposes only and shall not constitute an offer to buy/ sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice Past performance is not indicative of future results.

Please refer to the above PDF for a complete list of disclaimers pertaining to this newsletter

The Increasing Popularity of Uranium Investments


Slower Output and Increasing Demand Make Uranium Investments Hot

 

Uranium, the heaviest naturally occurring element on Earth,  is an abundant source of concentrated energy. Unlike fossil fuels which require oxygen during burning to release heat, uranium atoms can be made to split or fission to release heat energy. And it’s potent. A thimble-sized pellet is equivalent to one ton of coal or 17,000 cubic feet of natural gas. This highly valuable – and at times controversial – commodity has been one of the hottest investments of 2021. Let’s explore why.

 

Uranium Consumption

About 10% of the world’s electricity is generated from uranium at nuclear reactors. It’s currently used in over 440 reactors in 30 countries with a total output capacity of about 390,000 megawatts (MWe). About 50 more reactors are under construction and over 100 are planned.

The mined metal is being used commercially for products as diverse as medicines and medical procedures, to growing and preserving foods, to industrial technologies that are considered safer and more efficient with the use of nuclear technology.

 

Reputation

The “darker” side of the commodity is the weapon technology that allows sudden unleashing of its harnessed power in a deadly way. Also, memories of Fukushima and Chernobyl invite some degree of skepticism when it comes to investing in uranium. However, it serves as a comfort to know that uranium is only sold to countries that are signatories of the Nuclear Non-Proliferation Treaty (NPT) and allows international inspection to verify that it is used only for peaceful purposes. When talking about nuclear energy, the two nuclear reactor leaks and weapons are usually the first thing to come to mind.  But most do also realize the extent to which these energy sources have changed our lives over the last few decades.

 

 

Increasing Demand

Demand for nuclear energy has remained strong in recent years and is growing. The growth is projected to continue as a global shift to decarbonize aims to reduce industry dependence on fossil fuels. Meanwhile, the recent closure of 2 of the largest uranium mines in the world led to sharp price hikes for the metal. Even before the closure of these two mines in Niger and Australia, 2021 began with a record supply deficit.

Uranium deposit finds in North America are beginning to satisfy the deficit. The US is currently the world’s largest producer of nuclear power, accounting for more than 30% of worldwide nuclear generation of electricity. Current political discussions are beginning to categorize nuclear energy as an ESG-friendly source as transportation and infrastructure become increasingly electric. The US, Russia, Japan, and others are now looking to leverage their existing nuclear power capacity. Each of them faces little geopolitical barriers in doing so and is continuing to negotiate their plans.

 

Take-Away

The last few months have been rewarding for uranium investors with substantial appreciation to relevant companies’ shares across the sector.

As regions are recovering economically from the pandemic with a renewed interest in cleaner energy and infrastructure development, experts predict that uranium supply will go through more shortages as restocking cycles will struggle to keep up with utilization rates. At the current state, many investors are optimistic about uranium-related stocks and equities as they remain relatively cheap with prospects of compelling appreciation.

 

About the Author:

Laila Jiwani is a freelance writer specializing in topics related to social finance and international economic trends. Currently based in Dallas, Texas, she is an Erasmus Mundus Joint Master’s Graduate and has worked for economic development organizations in the U.S., Morocco, Kenya, Pakistan and Kyrgyzstan.

 

Suggested Content:

One-on-One with Energy Fuels

One-on-One with enCore Energy



ESG, B Corps, and Investors

Can Mining be Green and Sustainable



Issues Driving ESG Investing

How Does Uranium Fit Into the ESG Landscape?

 

Sources:

https://www.world-nuclear.org/information-library/country-profiles/countries-a-f/appendices/australia-s-uranium-mines.aspx#:~:text=Under%20the%20Ranger%20Authority%2C%20ERA,rehabilitation%20over%20about%20seven%20years.

https://www.world-nuclear-news.org/Articles/Niger-uranium-mine-ends-operations-after-47-years#:~:text=Production%20at%20the%20Cominak%20uranium,produced%20more%20than%2075%2C000%20tU.&text=Cominak’s%20board%20of%20directors%20announced,to%20depletion%20of%20its%20resources.

https://www.forbes.com/sites/jamesconca/2020/05/22/where-do-we-stand-on-uranium-in-the-post-pandemic-energy-world/?sh=5f64e4187dd7

https://www.oecd-nea.org/jcms/pl_52718/uranium-2020-resources-production-and-demand?details=true https://ans.org/pi/usafestival/docs/Table4_V3.pdf

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Release – Gevo (GEVO) – Total Cray Valley and Gevo to further Scale Up Development of Renewable Isoamylene from Fusel Oil


Total Cray Valley and Gevo to further Scale Up Development of Renewable Isoamylene from Fusel Oil

 

ENGLEWOOD, Colo., May 03, 2021 (GLOBE NEWSWIRE) — Total Cray Valley and Gevo, Inc. (NASDAQ: GEVO) announced today the successful completion of phase 1 of their Joint Development Agreement (JDA) to upgrade fusel oils into renewable isoamylene. The companies are now seeking to advance to Phase 2 of the JDA, which will allow for scale up of Gevo’s technology at a demonstration scale.

Fusel oils, made during the production of ethanol, equate to approximately 1 million tons of bio-based feedstock. The JDA, signed in 2020, is based on Gevo’s chemical-based catalytic processes that selectively convert low-value fusel oils, a mixture of alcohols that are byproducts from fermentation processes such as ethanol or isobutanol production, into higher-value renewable chemicals such as isoprene, ketones, aldehydes, or olefins, in this case isoamylene.

Isoamylene is used in a diverse set of applications, including resins, pesticides, flavors and fragrances, pharmaceuticals, healthcare products, adhesives, antioxidants, and UV stabilizers. For Cray Valley, isoamylene is used as a raw material in resin manufacturing.

“We were very satisfied with the results of pilot tests during Phase 1. Gevo’s technology was found to be robust and flexible and the initial economic assessment shows potential for a profitable business” said Valérie Goff, Senior Vice President Polymers at Total “This JDA between Total Cray Valley and Gevo is an excellent example of collaboration to develop the materials of the future produced from bio-based feedstock and meets a strong demand from our customers.”

“The team has achieved an important milestone with the success of Phase 1 to deliver plant based, low carbon solutions to our partner, Total Cray Valley. We look forward to continuing our track record of success at the demonstration scale,” stated Dr. Paul Bloom, Chief Technology and Innovation Officer at Gevo . Dr. Bloom continued, “This is a new way to think about decarbonization and biogenic carbon sequestration. Now this byproduct from ethanol, instead of being burned, can be converted into usable products that take CO out of the atmosphere while delivering drop-in performance in final products on the market today. For every pound of biobased isoamylene made and used in durable products like resins, it is essentially the equivalent of sequestering 2.5 pounds of biogenic CO from the atmosphere, compared to that carbon being combusted. Another example of how Gevo is advancing our focus to net zero and beyond.”

The companies are currently exploring options for scale-up and commercialization of the technology, which would provide the US market with a renewable source of isoamylenes, a world first.

About Total Cray Valley

Total Cray Valley is the premier global supplier of specialty chemical additives, hydrocarbon specialty chemical, and liquid and powder tackifying resins used as ingredients in adhesives, rubbers, polymers, coatings and other materials. Total Cray Valley has pioneered the development of these advanced technologies, introducing hundreds of products that enhance the performance of products in energy, printing, packaging, construction, tire manufacture, electronics, and other demanding applications. For more information, please visit www.crayvalley.com .

About Total

Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.


Learn more at Gevo’s website: www.gevo.com

Total Contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@total.com l @TotalPress

Investor Relations: +44 (0)207 719 7962 l ir@total.com

Gevo Contacts

Investor and Media Relations: +1 720-647-9605 l IR@gevo.com

Cautionary note

This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which Total SE directly or indirectly owns interests are separate legal entities. Total SE shall not be held liable for their acts or omissions. The terms “Total,” “Total Group” and “Group” may be used in this document for convenience. Similarly, the words “we”, “us” and “our” may also be used to refer to affiliates or to their employees. This document may contain forward-looking information and statements that are based on business and financial data and assumptions made in a given business, financial, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither Total SE nor any of its subsidiaries or affiliates assumes any obligation to investors or other stakeholders to update in part or in full any forward-looking information or statement, objective or trend contained in this document, whether as a result of new information, future events or otherwise.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the JDA between Gevo, Inc. and Total Petrochemicals & Refining USA, Inc (Total Cray Valley), the ability of the parties to scale up and/or commercialize the fusel oil technology that is the subject of the JDA, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and Total Cray Valley are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo and Total Cray Valley undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo and Total Cray Valley believe that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Gevo (GEVO) – Total Cray Valley and Gevo to further Scale Up Development of Renewable Isoamylene from Fusel Oil


Total Cray Valley and Gevo to further Scale Up Development of Renewable Isoamylene from Fusel Oil

 

ENGLEWOOD, Colo., May 03, 2021 (GLOBE NEWSWIRE) — Total Cray Valley and Gevo, Inc. (NASDAQ: GEVO) announced today the successful completion of phase 1 of their Joint Development Agreement (JDA) to upgrade fusel oils into renewable isoamylene. The companies are now seeking to advance to Phase 2 of the JDA, which will allow for scale up of Gevo’s technology at a demonstration scale.

Fusel oils, made during the production of ethanol, equate to approximately 1 million tons of bio-based feedstock. The JDA, signed in 2020, is based on Gevo’s chemical-based catalytic processes that selectively convert low-value fusel oils, a mixture of alcohols that are byproducts from fermentation processes such as ethanol or isobutanol production, into higher-value renewable chemicals such as isoprene, ketones, aldehydes, or olefins, in this case isoamylene.

Isoamylene is used in a diverse set of applications, including resins, pesticides, flavors and fragrances, pharmaceuticals, healthcare products, adhesives, antioxidants, and UV stabilizers. For Cray Valley, isoamylene is used as a raw material in resin manufacturing.

“We were very satisfied with the results of pilot tests during Phase 1. Gevo’s technology was found to be robust and flexible and the initial economic assessment shows potential for a profitable business” said Valérie Goff, Senior Vice President Polymers at Total “This JDA between Total Cray Valley and Gevo is an excellent example of collaboration to develop the materials of the future produced from bio-based feedstock and meets a strong demand from our customers.”

“The team has achieved an important milestone with the success of Phase 1 to deliver plant based, low carbon solutions to our partner, Total Cray Valley. We look forward to continuing our track record of success at the demonstration scale,” stated Dr. Paul Bloom, Chief Technology and Innovation Officer at Gevo . Dr. Bloom continued, “This is a new way to think about decarbonization and biogenic carbon sequestration. Now this byproduct from ethanol, instead of being burned, can be converted into usable products that take CO out of the atmosphere while delivering drop-in performance in final products on the market today. For every pound of biobased isoamylene made and used in durable products like resins, it is essentially the equivalent of sequestering 2.5 pounds of biogenic CO from the atmosphere, compared to that carbon being combusted. Another example of how Gevo is advancing our focus to net zero and beyond.”

The companies are currently exploring options for scale-up and commercialization of the technology, which would provide the US market with a renewable source of isoamylenes, a world first.

About Total Cray Valley

Total Cray Valley is the premier global supplier of specialty chemical additives, hydrocarbon specialty chemical, and liquid and powder tackifying resins used as ingredients in adhesives, rubbers, polymers, coatings and other materials. Total Cray Valley has pioneered the development of these advanced technologies, introducing hundreds of products that enhance the performance of products in energy, printing, packaging, construction, tire manufacture, electronics, and other demanding applications. For more information, please visit www.crayvalley.com .

About Total

Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major.

About Gevo

Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.


Learn more at Gevo’s website: www.gevo.com

Total Contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@total.com l @TotalPress

Investor Relations: +44 (0)207 719 7962 l ir@total.com

Gevo Contacts

Investor and Media Relations: +1 720-647-9605 l IR@gevo.com

Cautionary note

This press release, from which no legal consequences may be drawn, is for information purposes only. The entities in which Total SE directly or indirectly owns interests are separate legal entities. Total SE shall not be held liable for their acts or omissions. The terms “Total,” “Total Group” and “Group” may be used in this document for convenience. Similarly, the words “we”, “us” and “our” may also be used to refer to affiliates or to their employees. This document may contain forward-looking information and statements that are based on business and financial data and assumptions made in a given business, financial, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither Total SE nor any of its subsidiaries or affiliates assumes any obligation to investors or other stakeholders to update in part or in full any forward-looking information or statement, objective or trend contained in this document, whether as a result of new information, future events or otherwise.

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters including, without limitation, the JDA between Gevo, Inc. and Total Petrochemicals & Refining USA, Inc (Total Cray Valley), the ability of the parties to scale up and/or commercialize the fusel oil technology that is the subject of the JDA, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and Total Cray Valley are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo and Total Cray Valley undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo and Total Cray Valley believe that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2020, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.