RICHARDTON, N.D. – Shareholders of Richardton, North Dakota-based Red Trail energy approve a sale of ethanol production and carbon capture and sequestration assets to Gevo for $210 million.
Gevo says this will accelerate the company’s mission to transform renewable carbon and photosynthetic energy into net-zero liquid transportation fuels and chemicals while using less carbon.
Gevo expects the sale to close by the first quarter of 2025.
“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,” Gevo CEO Dr. Patrick Gruber said. “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. This acquisition also enables an ideal location for a ‘Net-Zero North’ plant to produce sustainable aviation fuel. It also mitigates risk around carbon sequestration for our Net-Zero 1 plant site in South Dakota.”
“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,” Gevo President and COO Dr. Chris Ryan said. “The CCS well gives us optionality for our Net-Zero-1 carbon sequestration as well as regional synergies with Net-Zero 1, under development in Lake Preston, South Dakota, our development facility in Luverne, Minnesota, and our renewable natural gas operations in Northwest Iowa. 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.”