Gevo Acquires Red Trail Energy Assets, Boosting Low-Carbon Portfolio

Gevo, Inc. announced the acquisition of Red Trail Energy's ethanol production plant and carbon capture and sequestration assets in North Dakota for $210 million. This acquisition marks a pivotal expansion in Gevo’s portfolio, enhancing its capacity to produce sustainable aviation fuel (SAF) with reduced carbon footprints through newly established Net-Zero North. Through this transaction, Gevo anticipates generating $30 million to $60 million in additional EBITDA annually. The transaction was facilitated by a $105 million senior secured loan from Orion Infrastructure Capital (OIC), which shows interest in further investment. The integration of these assets will bolster Gevo's market position in renewable fuels and address increasing global demands for low-carbon energy solutions. Gevo plans to leverage CCS to sequester carbon effectively, and to use the site to potentially expand SAF production. Gevo's commitment to sustainable growth is underpinned by strategic partnerships and an expectation of significant economic synergies, positioning it to meet future industrial trends and demand.