Can Gevo Survive Big Oil's Lawyers?

Synthetic biology company Gevo (NASDAQ: GEVO  ) is developing a technology platform that converts sugars into isobutanol. The four-carbon molecule has several big advantages over ethanol -- a two-carbon molecule -- including higher energy density, the potential to be a drop-in fuel compatible with current infrastructure, and the ability to be transformed into higher-value chemicals such as plastics and rubbers. When accounting for its potential in petrochemicals and specialty chemicals the global isobutanol market weighs in at over 70 billion gallons per year -- three times larger than the global ethanol market -- before accounting for fuels.

There is a pretty big prize awaiting the first handful of companies that can establish themselves in the industry. Unfortunately, the race for that prize also leads to cutthroat competition. Gevo has been embroiled in a fierce legal battle with Butamax, a joint venture between BP (NYSE: BP  ) and DuPont (NYSE: DD  ) that is seeking to develop its own isobutanol platform, for several years.

While Gevo recently won a major preliminary court decision over Butamax that will protect its technology, investors can expect a lengthy appeals process to weigh on shares. Fool.com contributor Maxxwell Chatsko explains the latest developments and what it means for investors.

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  • Report this Comment On May 21, 2013, at 3:25 PM, funfundvierzig wrote:

    One thing for sure, small Gevo in the courtroom against DuPont is up against a historically documented dirty-player, capable of all manner of judicial process abuse and even fraud. Long-time students of DuPont will recall the brazen abuses in discovery in the protracted BENLATE litigation in various forums, and even a secret $6 million cash bribe to opposing counsel by an outrageously unethical DuPont. [ Florida Bar Assoc. v. Rodriguez, 2007]

    More recently, DuPont was sanctioned for fraud by U. S. District Court Judge Richard Webber in the Monsanto patent infringement trial, which has since been settled between the parties, with DuPont compelled to pay a minimum stream of license fees to Monsanto of $1.75 billion over the next few years beginning in 2014.

    Gevo's attorneys must beware and be wary in dealing with this corrupt-to-the-CORE chemical conglomerate!

    ...funfun..

  • Report this Comment On May 19, 2014, at 11:26 AM, thiagorulez wrote:

    Well, the fact is, if you put money and attorneys together, your odds go way up. Lawyers can make a lot happen with a decent case and sufficient funds. You can see it anywhere, the majority of legal battles rests on money. Thiago | http://www.lynnjackson.com/attorney-profiles/

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