Gevo inks offtake agreement with Land O'Lakes for distillers grains

In Colorado, Gevo has signed an off-take and marketing agreement with Land O’Lakes Purina Feed for the sale of isobutanol distillers grains (iDGs) from Gevo’s isobutanol production facility at Luverne, Minnesota.

Land O’Lakes Purina Feed will be the exclusive marketer of Gevo’s isobutanol dried and modified wet distillers grains for the animal feed market. Further, the companies plan to work together to explore opportunities to upgrade the material for special value-added applications in feed markets.

According to the USDA’s Economic Research Service, one metric ton of dried distillers grain can replace on average 1.22 metric tons of animal feed consisting of corn and soybean meal in the USA. Distillers grains have higher concentrations of protein and nutrients, allowing them to displace a disproportionate amount of corn and soybean meal in animal feed.

Gevo’s fermentation process converts only the carbohydrates (corn starch) into isobutanol while capturing 100 percent of the corn protein, the most valuable part, for animal nutrition.