Welcome to the Gevo Incorporated Q2 2016 Earnings Conference Call. My name is Adrian and I will be your operator for today's call. At this time all participants are in a listen-only mode. Later we will be conduct a question-and-answer session. Please note that this conference is being recorded. I'll now turn the call over to Geoff Williams. Geoff Williams, you may begin.

Good afternoon everyone and thank you for joining Gevo's second quarter 2016 conference call. I'd like to start by introducing today's participants from the Company. With us today is Pat Gruber, Gevo's Chief Executive Officer; and Mike Willis, Gevo's Chief Financial Officer. Earlier today we issued a press release which outlines the topics that we plan to discuss today. A copy of this press release is available on our Web site at www.gevo.com. I would like to remind our listeners that this conference call is open to the media and we are providing a simultaneous webcast of this call to the public. A replay of today's call will be unavailable on Gevo's Web site. On the call today and on this webcast, you will hear discussions of certain non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is contained in the press release distributed today and which is posted on our Web site. We will also make certain forward-looking statements about events and circumstances that have not yet occurred including but not limited to projections about Gevo's operating activities for the remainder of 2016 and beyond. These forward-looking statements are based on management's current, beliefs, expectations and assumptions and are subject to significant risks and uncertainties including those disclosed in Gevo's Form 10-K which was filed with the U.S Securities and Exchange Commission or SEC on March 30, 2016 and in subsequent reports and other filings made with the SEC by Gevo including Gevo's quarterly reports on Form 10-Q. Investors are cautioned not to place undue reliance on any such forward-looking statements. Such forward-looking statements speak only as of today's date and Gevo disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise. On today's call Pat will begin with a review of Gevo's recent business developments. Mike will then view Gevo's financial results for the second quarter 2016. Following the presentation we will open up the call for questions. I'll now turn the call over to Pat.

Thank you, Geoff. I would like to start by giving you a brief update on the burn, and our operational production status and progresses after which I will provide you an update on our efforts in the jet fuel market followed by an update on the specialty fuels market and then add some comments about our new partner Clariant. Mike will then provide a detailed financial review for the quarter and we will open it up for Q&A. So first, the distillation system is complete in Luverne, and the entire pressure process is operating. The technology is working across the whole process. The fermentation at Luverne is going well and we are particularly pleased with that progress. In fact, we have seen one of our batches exceed the upper hand of our production range of 20,000 gallons and that's a great result. On the cost side we remain on track to hit all of our targets. Now the distillation system as I mentioned last quarter was, we were just in the midst of starting it up and working with optimizing it. It did give us some trouble. It's now working and producing product on spec. After starting up that distillation system in March as we integrate the process streams with whole plant, we found that some impurities didn't go where we thought they would. At least in the quantities that we thought they would and instead some of them went to our product. In order to make the isobutanol in spec we had to reprocess using our distillation system. It slowed us down because we had to use the fermenter to have the whole tank for the reprocessing as we didn't have another tank to use. I guess the penny pinched too much in that case. This meant that we…

Thank you, Pat. Gevo reported revenue in the second quarter of 2016 of $8.1million compared to $8.9 million in the same period in 2015. The decrease in revenue during 2016 is primarily result the production and sale of approximately $7.2 million of ethanol, isobutanol and distillers grains at the Luverne plant as compared to $8 million in the second quarter of 2015. This change was principally a result of lower ethanol production, ethanol prices, and the distiller's grains prices in the second quarter of 2016 versus the same period in 2015. During the second quarter 2016 hydrocarbon revenues were $0.7 million basically flat compared to the same period in 2015. Gevo also generated grant revenue of $0.2 million during the second quarter of 2016, which was also flat as compared to the same period in 2015. Cost of goods sold was $10 million in the second quarter of 2016 versus $9.9 million in the same period in 2015. Cost of goods sold included approximately $8.5 million associated with production of ethanol isobutanol and related products and approximately $1.5 million in depreciation expense. Gross loss was $1.9 million for the second quarter of 2016 versus $1 million for the second quarter of 2015. R&D expense was $1.5 million in the second quarter of 2016 compared to $1.8 million reported in the second quarter of 2015. R&D expense decreased in the second quarter 2016 compared with the same period in 2015, due primarily to a reduction in employee related expense. SG&A for the second quarter 2016 decreased to $2.1 million compared $3.8 million for the comparable quarter 2015. SG&A expense decreased in the second quarter 2016 compared to same period 2015 due primarily to a decrease of $1.3 million in litigation legal expenses. Within total operating expenses for the second quarter 2016…

Thanks, Mike. I would like to thank you all for your continued interest and support Gevo let's open up the call for questions, operator.

[Operator instruction] And our first question comes from Jeff Osborne please go ahead.

Good afternoon, guys, thanks for taking questions. I might have missed it but it could you give us what the total gallon produced of ethanol, as well as isobutenol in the quarter.

On the ethanol side we sold just under 4 million gallons. Recorder and then on the isobutenol side we sold or produced 80,000 gallons.

80,000, okay. Then how do we think about the ramp you gave some metrics of runs and you know kind of a gradual ramp up there Pat in the prepared remarks which is very helpful but at how do we think about gallons expectations for the third quarter versus the fourth quarter, I assume it's a pretty back in loaded you're with the revised guidance.

Since the beginning of Q3 with our efforts 70,000 gallons, so over the first you know got a month and you know few days here in August. So though there will be a ramp where you know we would anticipate Q4 having more gallons than Q3.

One of the things that mentioned on the call but it is -- the prepared remarks was that the capacity -- you can see that unit operation themselves have the capacity that we intended, so it's all good you just have to get -- you will be short right now we're at about 7 days cycle between batches working our way downward. And or run it, it does run better when we are closer badges.

Right then you mention that you're using the fermentation tank as a holding pattern you can you just give us a sense of the scope of you know; a, how long the plant was it was under-utilized and then you can add duration of period waiting for the at the pumps and equipment to show up.

It's about six weeks away and what happened was that -- yes we started off with running and we were intermittently in speck. But what if you don't have a -- we have one big finished product tank. And as soon as we saw that our product would not in speck we had to divert it. Because you don't want to contaminate the whole big thing. So then what we did the only thing that was big enough at the end are our fermentation tanks so we pumped it back to our fermentation tanks then use that and then re-distill it, so we used a re-distillation equipment, and then confirmed that it was in speck before we put in the final product tank. You know ideally you had a separate intermediate tank, we just didn't have the money to spend on that time.

I understand. And last two questions I had is can you give us update on Praj? And then I appreciated the comments in the prepared remarks on Clariant, but maybe just a sense of expectation or realistic processes of something can potentially be tested and commercialized there?

They are already are able to do the fermentation run -- and give system at their sight so as they continue to make progress and they are learning how to run it on sugar and molasses. So, they have taken the particular bug, they have taken our process and able to replicate our results. That is the first step.

Excellent. And anything on the price side?

That was rush.

Oh that was? I was asking about Clariant. Sorry, I was mixing up the two. I had asked about both and you gave it on the Clariant side.

Yes. Okay, so I just said about Praj that they've been able to take out. Yes, Clariant has been able to scale up the catalyst and they are contributing so that's an integral process, we will go back and forth but yes we are already making progress with it in the past to encourage this thing. And what's cool about this is that in this kind of commercialization, this kind of technology takes very few resources on our part because we already did the fundamental stuff and so, what we need is the commercial catalyst. The sub-catalyst, they are particular formulation of chemistries in other words, they are chemicals that form a catalyst but also has to be put into the right form and I am talking about the shape, the particle. And for it to work on a commercial basis and so that's what Clariant is working on and so we will continue to make progress there. And that technology is interesting because it is one of the few ways that we have seen from anyone that has the ability to make a propylene and be economical to do it.

Makes sense, good to hear. I appreciate all the comments.

Thanks, Jeff.

And the next question comes from Amit Dayal [ph]. Please go ahead.

Thank you. In terms of the isobutanol shipment, are we shipping everything we are producing or are we holding inventory?

When we get it certified, it gets in the rail cars generally.

Yes. We have been shipping our products either to customers or down to obviously Southampton where we can continue freeze our isooctanes and jet fuel.

Understood, and in regards to, sorry if I missed this, I have been on multiple calls. On the ATJ front, what are the next steps in maybe moving this to slightly higher volumes? Any color on that would be helpful.

Yes. I am glad you asked that. I mentioned it a couple of times in prepared remarks and it is good to amplify it in case it didn't come across that lot of the work we are doing at Luverne is looking to, we will be looking to make sure we understand it well so we can expand Luverne significantly. With the intent of alternatively producing Alcohol to Jet at that site. That is what we would like to be able to do. We see enough of commercial interests on the Alcohol to Jet front so we are working on the customer agreements to make sure that get those buttoned down in order to make it happen. So yes we see that there is a lot of interest and we are working on it and we think the right place to produce that is large scale at Luverne. And so when we talk about reducing even our run-rate price, there will be times when we are doing particular pieces of work specifically to make sure we understand what an upscale, a big upscale Luverne plant would look like. Now, to get a good breakeven, profitable company we want to see Luverne ultimately switched over to first isobutanol, and then to bring that isobutanol to jet fuel, that's what the future looks like and how we think about it.

Understood. In regards to the dealer distributors, you had signed in the last few months like Musket etcetera, what's the feedback from them in terms of the product you are putting out in the market. Any insight from their side in terms of how you think demand for this product will scale up over the next few quarters. Any color on that would be helpful, thank you.

Yes. What I expect to see is a ramp up. We see interest so we will be able to talk more about it in the future. Musket is private company and they are one of the most, I don't know if people know that, Musket is owned by Love's and I think it is one of the largest companies in the country and they are private. So they like to do things first and tell people about it afterwards rather than, to continue what they are doing. But I can tell you this it's interested, they're interested and it's growing.

Thank you. That's all I have.

Thanks, Amit.

And we have no further questions. I will now turn the call over Geoff Williams for final comments.

Okay. Thanks everyone for joining us. Thanks for your interest in Gevo. Have a good evening, bye.