Net-zero hydrocarbon fuels leader Gevo this week announced the acquisition of the ethanol production plant and carbon capture and sequestration (“CCS”) assets of Red Trail Energy in North Dakota for $210 million.

In a conference call announcing the acquisition, Gevo CEO Dr. Patrick Gruber said it will provide an ideal Net-Zero site for future sustainable aviation fuel (“SAF”) production that is synergistic with Gevo’s Net-Zero 1 SAF project in Lake Preston, South Dakota. “It immediately puts us on a path to becoming self-sustaining and profitable as a company in advance of our Net-Zero 1 project’s commercial operation,” said Gruber. “Not only are we securing an excellent site for additional SAF asset deployment, but we also mitigate risk around carbon sequestration regarding our Net-Zero 1 plant site in South Dakota.”

“We believe this site is ideal for production of sustainable aviation fuel using Gevo’s integrated alcohol-to-jet technology and defossilized energy, combined with CCS,” said Gevo President and COO, Dr. Chris Ryan. “We plan to immediately begin optimizing the asset with partners through combined heat and power, which will further lower the carbon intensity and increase annual carbon sequestration. This not only decarbonizes the current ethanol production further, but also enables the site for net-zero SAF and chemical production.”

The transaction is expected to close by the first quarter of 2025, subject to receipt of regulatory approvals and the satisfaction of other customary closing conditions, including obtaining the approval of Red Trail Energy’s equity holders and the procurement of financing for the acquisition. Gevo expects to finance the transaction with a combination of asset level debt and cash from the balance sheet.

Listen to Gruber and Ryan announce the acquisition on the conference call.
Gevo announces Red Trail acquisition (7:38)