Gevo receives funding from Virgin Fuels and Khosla Ventures to make biobutanol
Pasadena-based Gevo, a California Institute of Technology spinoff that will produce advanced biofuels, including butanol, to help the world end its addiction to oil, announced today that Virgin Fuels has joined founding investor Khosla Ventures in a Series B venture round and will join the Gevo Board. In addition, Gevo announced that Patrick Gruber has joined the company as CEO. Gruber is a 20-year veteran of the bioscience industry and companies including Cargill and NatureWorks.
Gevo intends to produce biobutanol from different types of biomass, including sugar cane, corn byproducts and grasses. Its bioprocessing technology uses fermentation to convert plants to alcohol-based fuels. Initially, the company intends to make butanol variants for automobiles, trucks and jets using the same basic technologies. It will explore next-generation biofuels as well, such as bio-based isobutanol.
Most money invested in biofuels has been targeted at first and second-generation ethanol. But butanol, which today is often used as a paint thinner, can be produced as a fuel with clear advantages. Butanol has a higher energy density than ethanol, but it does not absorb water, which means it can't be effectively distributed through pipelines. However, there are still technical hurdles to be overcome for biobutanol production to be scaled up. (More on biobutanol here, here and here).
Sir Richard Branson formed Virgin Fuels last year to make investments in renewable energy companies, in part to produce fuels for his fleet of airplanes (more here and here).
energy :: sustainability :: ethanol :: biobutanol :: biomass :: bioenergy :: biofuels :: Khosla :: Virgin ::
Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of the Internet to new markets such as mobile and supports breakthrough scientific work such as bio refineries. Vinod Khosla founded the firm in 2004. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one of the nation's most influential ethanol advocates, noting "there are venture capitalists, and then there's Vinod Khosla." The firm's capital comes entirely from its own partners and a portion of all profits are donated to charitable causes, with an emphasis on micro-finance, education, and the environment. Khosla Ventures is based in Menlo Park, California.
Virgin Fuels has been established to invest up to $400mn in companies in the renewable energy and resource efficiency sectors in the US and Europe. Virgin Fuels is a sector-focused, multi-stage investment firm investing primarily in expansion/growth capital opportunities with an allocation to venture capital.
Gevo intends to produce biobutanol from different types of biomass, including sugar cane, corn byproducts and grasses. Its bioprocessing technology uses fermentation to convert plants to alcohol-based fuels. Initially, the company intends to make butanol variants for automobiles, trucks and jets using the same basic technologies. It will explore next-generation biofuels as well, such as bio-based isobutanol.
Most money invested in biofuels has been targeted at first and second-generation ethanol. But butanol, which today is often used as a paint thinner, can be produced as a fuel with clear advantages. Butanol has a higher energy density than ethanol, but it does not absorb water, which means it can't be effectively distributed through pipelines. However, there are still technical hurdles to be overcome for biobutanol production to be scaled up. (More on biobutanol here, here and here).
Gevo aims to represent not only a step toward true energy diversity for the country, but yet another cost-effective alternative to fossil fuels. Major credit should be given to the founders of Gevo and the Caltech team for their groundbreaking work with biological systems toward new developments in alternative energy. - Vinod Khosla, managing partner of Khosla Ventures.Khosla recently told biotechnology industry representatives that he believes biofuels could someday replace 100% of fossil fuels. With Khosla Ventures the investor is funding a range of bioenergy and green chemistry startups, including in a vast project in Brazil (previous post).
Sir Richard Branson formed Virgin Fuels last year to make investments in renewable energy companies, in part to produce fuels for his fleet of airplanes (more here and here).
Mitigating the effects of climate change will require incredible efforts around the globe. Through Virgin Fuels, we look for investments in companies - such as Gevo, Inc. - that will help to significantly reduce net greenhouse gas emissions, improve management of scarce resources, and have a long term positive impact on our society. - Richard Branson, Virgin FuelsGevo has exclusively licensed technology in the field of biofuels developed in the labs of Frances Arnold at Caltech and other prominent labs:
energy :: sustainability :: ethanol :: biobutanol :: biomass :: bioenergy :: biofuels :: Khosla :: Virgin ::
Gevo will take the best of the scientific world, combined with top business practices, to succeed in replacing existing technologies with new, more environmentally sound alternatives. I am excited to have the chance to make a difference through our institution's work with Gevo. - Frances Arnold, company founder and professor of chemical engineering and biochemistry at Caltech.Gruber joins Gevo from Outlast Technologies, where he served as President and CEO. Prior to this, he was a founder and CTO of Cargill Dow/NatureWorks LLC, the first company to develop and successfully commercialize the renewable resource-based PLA (Polylactic Acid) to replace petrochemical plastics. While at Cargill, Gruber held a number of executive positions that included Director of Technology Development for Cargill’s bio-products areas and Technical Director of Cargill’s BioScience division. He was the Leader and later the General Manager of Cargill’s Renewable Bioplastics project.
Gevo is at the forefront of turning biomass into products like butanol, making this break-through process a commercial and affordable reality. Gevo is well-positioned to become the world’s leading advanced biofuels company, and I’m very pleased to be a part of it. - Patrick Gruber, CEO Gevo Inc.Founded in 2005, Gevo, Inc. is working on new methods for the production of alternative fuels. Gevo is based upon technology developed at the California Institute of Technology by Gevo founders Frances Arnold, Matthew Peters, and Peter Meinhold and is funded by Khosla Ventures and Virgin Fuels. Gevo is based in Pasadena, California.
Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of the Internet to new markets such as mobile and supports breakthrough scientific work such as bio refineries. Vinod Khosla founded the firm in 2004. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one of the nation's most influential ethanol advocates, noting "there are venture capitalists, and then there's Vinod Khosla." The firm's capital comes entirely from its own partners and a portion of all profits are donated to charitable causes, with an emphasis on micro-finance, education, and the environment. Khosla Ventures is based in Menlo Park, California.
Virgin Fuels has been established to invest up to $400mn in companies in the renewable energy and resource efficiency sectors in the US and Europe. Virgin Fuels is a sector-focused, multi-stage investment firm investing primarily in expansion/growth capital opportunities with an allocation to venture capital.
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