Gevo Inc, a leading developer of net-zero hydrocarbon fuels and chemicals, has made significant strides in its mission to revolutionize the energy industry. The company recently announced that its planned acquisition of the ethanol production plant and carbon capture and sequestration (CCS) assets of Red Trail Energy, LLC, has received overwhelming approval from Red Trail Energy's equity holders.

Gevo will acquire the Red Trail Energy ethanol production assets and CCS assets for a substantial $210 million. This investment is expected to yield significant returns, as the assets possess the capability to generate valuable biogenic carbon credits alongside advanced liquid fuels.

This strategic move will speed up Gevo’s production of net-zero fuels and chemicals from renewable sources. This move will help reduce carbon emissions. The deal is expected to be finalized by early 2025, pending regulatory approval.

“On behalf of the entire team at Gevo, and our board of directors, stakeholders, shareholders, investors, and customers and industry partners, we would like to thank the equity holders of Red Trail Energy for approving the acquisition,” said Gevo CEO, Dr. Patrick Gruber. “With this investment, Gevo will be set on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project coming online.”

Dr. Gruber further emphasized the strategic importance of this acquisition, stating, “This acquisition also enables an ideal location for a ‘Net-Zero North’ plant to produce sustainable aviation fuel (SAF). It also mitigates risk around carbon sequestration for our Net-Zero 1 plant site in South Dakota.”

Expanding Gevo's Footprint

The integration of Red Trail Energy's assets into Gevo's operations will provide numerous benefits. The CCS well, in particular, offers significant potential for both the Net-Zero 1 carbon sequestration project and regional synergies with other Gevo facilities, including the Net-Zero 1 plant under development in Lake Preston, South Dakota, the development facility in Luverne, Minnesota, and the renewable natural gas (RNG) operations in Northwest Iowa.

“We believe these assets are ideal for furthering Gevo’s mission to create price-competitive domestic bio-based production pathways for SAF using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS,” said Dr. Chris Ryan, President and COO of Gevo. “As Net-Zero 1 and other production facilities come online, the infrastructure and resources that we will have acquired in North Dakota offer tremendous flexibility for how we might operate in the area.”

A Sustainable Future

Gevo's commitment to sustainability is evident in its various initiatives, including the tracking and verification of the carbon footprint of its business systems through its Verity subsidiary. By acquiring the Red Trail Energy assets, Gevo is taking a significant step towards a more sustainable future, reducing carbon emissions and promoting the development of clean, renewable fuels.