ENGLEWOOD, Colo. — Gevo, a leading developer of net-zero hydrocarbon fuels and chemicals, announced Sept. 12 it has entered into an agreement to acquire the ethanol production plant and carbon capture and sequestration assets of Red Trail Energy in Richardton, North Dakota, for $210 million.
The 65-million-gallon-per-year ethanol facility is located on 500 acres with pore space lease agreements for 5,800 acres in the Broom Creek formation, which has pore space sufficient for 1 million metric tons of carbon capture and sequestration annually.
The permitted carbon capture storage well currently sequesters approximately 160,000 metric tons of carbon annually. In addition, the facility generates more than 200,000 tons annually of distillers grains and vegetable oil co-products.
The facility distributes its low-carbon ethanol across the U.S. and Canada, including low-carbon demand markets in Oregon, Washington, British Columbia and Alberta. Gevo expects to retain all of the approximately 50 full-time employees currently operating the assets being acquired.
“We are proud of what we have accomplished at Red Trail Energy and are excited about the future under Gevo’s leadership,” said Jodi Johnson, CEO of Red Trail Energy, in a press release. “Gevo’s vision for a sustainable future aligns with our philosophy of ‘our farms, our fuel, our future.’ We are confident this acquisition will drive positive change in the renewable energy sector.”
The transaction is expected to close by the first quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy’s equity holders and the procurement of financing for the acquisition.
Patrick Gruber, CEO of Gevo.
Aaron Lucy / Gevo
Patrick Gruber, CEO of Gevo, said this investment comes with several benefits for the company.
“Carbon abatement for fuels and chemicals is core to our business. This acquisition enables immediate market development for sequestered carbon,” Gruber said in a press release. “We expect our ownership of these assets to generate significant near-term and long-term value for our shareholders, while adding new jobs and economic growth to rural communities in the region.”
In 2021, Gevo announced it had purchased 240 acres near Lake Preston, South Dakota, to build a sustainable aviation fuel facility. Gruber said the purchase of Red Trail will also be beneficial for the project in South Dakota.
“It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation. Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota,” Gruber said in a press release. “This acquisition gives us the opportunity to build capability as a company and is a terrific training ground for our Net-Zero 1 project, as we inherit a trained cadre of employees who understand plant operations.”
Kennedy is a reporter for Agweek based out of South Dakota. She grew up on an organic crop farm where her family also raises cattle in eastern South Dakota. She graduated from South Dakota State University in 2023 with a major in agricultural communication and minor in agricultural business. She enjoys connecting with producers and agribusinesses across the region while reporting on all things agriculture.
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66e998d85df34135842e6e865a63a209&url=https%3A%2F%2Fwww.agweek.com%2Fcrops%2Fcorn%2Fgevo-acquires-red-trail-energy-assets-in-north-dakota&c=3294572796020486648&mkt=en-us
Author :
Publish date : 2024-09-17 03:45:00
Copyright for syndicated content belongs to the linked Source.
