Gevo completes sale of Minnesota (U.S.) ethanol facility to A.E. Innovation
Gevo Inc. has completed the sale transaction of Agri-Energy LLC, a wholly owned subsidiary of Gevo, to A.E. Innovation LLC. The transaction includes Agri’s 18-MMgpy (gallon per year) ethanol production facility and a portion of the adjacent land, located in Luverne, Minnesota (U.S.).
For Gevo, this is a divestiture of a non-core asset that provided $2 MM in cash up front and $5 MM in future cash installments, while saving annual idling costs of approximately $3 MM per year. Under the terms of the sale, Gevo retained ownership of the majority of the isobutanol production assets onsite and approximately 30 acres of land.
A.E., an agriculture-oriented buyer group located in Minnesota, acquired Agri with the intent to restart ethanol production at the plant, which has been idled since March 2020. A.E. intends to use the site to produce ethanol, and to make the site available for other companies to scale up new technologies and ideas as an innovation site.
Gevo’s retained assets at the site would allow the company to continue to utilize its differentiated and patented fermentation technologies with capacity to produce 1 MMgpy of low-carbon isobutanol for use in chemicals markets, as feedstock for racing fuels, gasoline and jet fuel.
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