Gevo Acquires Red Trail Energy's Ethanol, CCS Assets for $210 Million

Gevo has successfully acquired Red Trail Energy’s ethanol production plant and carbon capture and sequestration (CCS) assets in North Dakota for $210 million, a move aimed at bolstering its sustainable aviation fuel (SAF) production capabilities. The newly named Net-Zero North is projected to add $30 million to $60 million in annual adjusted EBITDA and allows for permanent carbon dioxide sequestration, enhancing Gevo's carbon abatement efforts. The acquisition was financed through a combination of equity and a $105 million senior secured term loan from Orion Infrastructure Capital, which also plans to invest an additional $100 million in future projects at the site. Gevo's CEO, Patrick Gruber, emphasized the strategic importance of this venture, indicating it as a stepping stone towards the company's self-sustainability and profitability goals ahead of their Net-Zero 1 project in South Dakota. This acquisition not only expands Gevo's operations but also aligns with its mission to produce low-carbon fuels in response to growing market demands for sustainability. The integration of CCS technology is expected to give Gevo a competitive edge in the biofuels industry.