Reported by Staff

Englewood-based biofuel and biochemical company Gevo Inc. has received a $10 million investment from German chemicals manufacturer Lanxess AG.

According to the companies, the deal is part of a proposed venture to produce isobutene, a material needed in rubber manufacturing, from renewable resources.

The German company says it should reach more than $800 million in gross earnings for 2010, an improvement from last year. Its investment in Gevo includes a minority shareholding in the company and a seat on its board of directors, to be filled by Ron Commander, head of Lanxess’ Butyl Rubber Business Unit.

“We are extremely pleased to have Lanxess make a strategic investment in Gevo and appreciate their confidence in our isobutanol platform,” Gevo CEO Patrick Gruber said in a statement. “We expect this renewable hydrocarbon feedstock will have many applications in a variety of chemical markets.”

“This investment and the proposed [isobutene] cooperation broaden our future supply options against the background of volatile raw material prices and consolidation within the petrochemical industry,” Lanxess chairman Axel Heitmann said in a statement. “This investment also underpins our commitment to ‘Green Chemistry,’ which is becoming more important to all stakeholders.”

As a privately held company with 55 employees, Gevo is working to commercialize biobutanol production. It began to produce biobutanol on a demonstration-scale in the second half of 2009, after  receiving a 40 million VC investment. The company has said it expects to complete its first retrofit of an existing ethanol plant to biobutanol production by 2011.