Gevo Inc., a U.S. biofuel producer backed by French oil company Total SA and specialty-chemicals maker Lanxess AG, fell to a record low after announcing plans to stop producing isobutanol at its facility in Luverne, Minnesota.
Gevo declined 35 percent to $2.14 at the close in New York, the lowest price and the biggest loss since its February 2011 initial public offering.
The company is shifting to ethanol production at the plant while it adjusts its manufacturing process for isobutanol, a more complex fuel it began making there in May, according to a statement released after the close of regular trading yesterday.
Gevo is working on “certain specific parts of our technology” to boost isobutanol production rates, according to the statement. The Englewood, Colorado-based company estimated that the facility won’t reach “our desired year-end run rate” until next year.
Gevo said in May it would be producing about a million gallons (3.8 million liters) of isobutanol a month before the end of this year. The biofuel is made from corn and non-food crops and may be blended with gasoline or refined into jet fuel, specialty chemicals or other products that are typically derived from petroleum.