Gevo partners with FCStone for corn supply

Gevo has entered into an agreement with FCStone Merchant Services, LLC to originate and supply corn for Gevo’s plant in Luverne, Minn.

Engaging FCStone to conduct Gevo’s corn purchasing at Luverne is expected to free up more than $1 million of working capital, which has previously been tied up in corn inventory. By leveraging FCStone’s scale and corn buying expertise, Gevo expects to significantly improve its corn purchasing capabilities by increasing the number of suppliers (farmers and elevators) from which Gevo will buy corn, and by extending the duration of its forward corn purchasing commitments, which should enable Gevo to take advantage of lower corn price environments.

As part of this arrangement, Gevo will pay an origination fee for every bushel of corn it purchases from FCStone. FCStone will pay Gevo an annual fee for leasing the corn storage bins at the Luverne plant.