Gevo to Sell Luverne, Minnesota Ethanol Facility to A.E. Innovation; Will Retain Isobutanol Assets for Future Innovation
Gevo (NASDAQ: GEVO) has agreed to sell its Agri-Energy subsidiary, including an 18-million-gallon-per-year ethanol facility in Luverne, Minnesota, to A.E. Innovation for $7 million. The deal structure includes $2 million at closing and $5 million in future payments. Gevo will retain isobutanol-production assets capable of producing up to 1 million gallons annually of isobutanol for specialty chemicals or conversion into isooctane and jet fuel.
A.E. Innovation plans to restart the currently idled ethanol production facility and transform it into an innovation hub for scaling up new bio-based technologies. The transaction is expected to close by end of 2025, subject to financing and other conditions. The deal will result in approximately $3 million annual savings in facility idling costs for Gevo while supporting local farmers and the regional economy.
Gevo (NASDAQ: GEVO) ha concordato la vendita della sua controllata Agri-Energy, che include un impianto di produzione di etanolo da 18 milioni di galloni all'anno situato a Luverne, Minnesota, a A.E. Innovation per 7 milioni di dollari. La struttura dell'accordo prevede un pagamento di 2 milioni di dollari alla chiusura e 5 milioni di dollari in pagamenti futuri. Gevo manterrà gli asset per la produzione di isobutanolo, con una capacità annua fino a 1 milione di galloni, destinati a prodotti chimici speciali o alla conversione in isooctano e carburante per jet.
A.E. Innovation intende riavviare l'impianto di produzione di etanolo attualmente inattivo e trasformarlo in un centro di innovazione per la scalabilità di nuove tecnologie bio-based. La transazione dovrebbe concludersi entro la fine del 2025, subordinatamente a finanziamenti e altre condizioni. L'accordo permetterà a Gevo un risparmio annuo di circa 3 milioni di dollari sui costi di inattività dell'impianto, sostenendo al contempo gli agricoltori locali e l'economia regionale.
Gevo (NASDAQ: GEVO) ha acordado vender su subsidiaria Agri-Energy, que incluye una planta de etanol con capacidad para 18 millones de galones por año en Luverne, Minnesota, a A.E. Innovation por 7 millones de dólares. La estructura del acuerdo contempla 2 millones de dólares al cierre y 5 millones de dólares en pagos futuros. Gevo conservará los activos de producción de isobutanol con capacidad de hasta 1 millón de galones anuales, destinados a productos químicos especiales o a la conversión en isooctano y combustible para jets.
A.E. Innovation planea reactivar la planta de etanol actualmente inactiva y convertirla en un centro de innovación para escalar nuevas tecnologías basadas en bio. Se espera que la transacción se cierre a finales de 2025, sujeta a financiamiento y otras condiciones. El acuerdo generará un ahorro anual aproximado de 3 millones de dólares en costos por inactividad de la planta para Gevo, al mismo tiempo que apoyará a los agricultores locales y a la economía regional.
Gevo (NASDAQ: GEVO)는 미네소타주 루버른에 위치한 연간 1,800만 갤런 규모의 에탄올 시설을 포함한 자회사 Agri-Energy를 A.E. Innovation에 700만 달러에 매각하기로 합의했습니다. 거래 구조는 종료 시 200만 달러 지급과 향후 500만 달러 지급을 포함합니다. Gevo는 특수 화학제품용 또는 이소옥탄 및 제트 연료로 전환할 수 있는 연간 최대 100만 갤런의 이소부탄올 생산 자산을 유지합니다.
A.E. Innovation은 현재 가동 중단된 에탄올 생산 시설을 재가동하고 새로운 바이오 기반 기술을 확장하기 위한 혁신 허브로 전환할 계획입니다. 이 거래는 자금 조달 및 기타 조건에 따라 2025년 말까지 완료될 예정입니다. 이 거래로 Gevo는 시설 가동 중단 비용에서 연간 약 300만 달러의 절감 효과를 누리며 지역 농민과 경제를 지원할 수 있습니다.
Gevo (NASDAQ : GEVO) a accepté de vendre sa filiale Agri-Energy, comprenant une usine de production d'éthanol de 18 millions de gallons par an située à Luverne, Minnesota, à A.E. Innovation pour 7 millions de dollars. La structure de l'accord inclut 2 millions de dollars à la clôture et 5 millions de dollars en paiements futurs. Gevo conservera les actifs de production d'isobutanol capables de produire jusqu'à 1 million de gallons par an d'isobutanol pour des produits chimiques spécialisés ou pour la conversion en isooctane et carburant pour avion.
A.E. Innovation prévoit de relancer l'usine d'éthanol actuellement à l'arrêt et de la transformer en un centre d'innovation pour le développement à grande échelle de nouvelles technologies bio-sourcées. La transaction devrait être finalisée d'ici la fin 2025, sous réserve de financement et d'autres conditions. Cet accord permettra à Gevo de réaliser environ 3 millions de dollars d'économies annuelles sur les coûts d'inactivité de l'installation, tout en soutenant les agriculteurs locaux et l'économie régionale.
Gevo (NASDAQ: GEVO) hat zugestimmt, seine Tochtergesellschaft Agri-Energy, einschließlich einer Ethanolanlage mit einer Kapazität von 18 Millionen Gallonen pro Jahr in Luverne, Minnesota, an A.E. Innovation für 7 Millionen US-Dollar zu verkaufen. Die Struktur des Deals umfasst 2 Millionen US-Dollar bei Abschluss und 5 Millionen US-Dollar in zukünftigen Zahlungen. Gevo behält die Isobutanol-Produktionsanlagen, die bis zu 1 Million Gallonen jährlich Isobutanol für Spezialchemikalien oder die Umwandlung in Isooctan und Flugbenzin produzieren können.
A.E. Innovation plant, die derzeit stillgelegte Ethanolproduktionsanlage wieder in Betrieb zu nehmen und in ein Innovationszentrum zur Skalierung neuer biobasierter Technologien umzuwandeln. Die Transaktion soll bis Ende 2025 abgeschlossen sein, vorbehaltlich der Finanzierung und anderer Bedingungen. Der Deal wird Gevo jährliche Einsparungen von etwa 3 Millionen US-Dollar bei den Stillstandskosten der Anlage bringen und gleichzeitig lokale Landwirte und die regionale Wirtschaft unterstützen.
- Sale will generate $7 million in proceeds ($2M upfront + $5M future payments)
- Expected annual savings of $3 million from eliminated facility idling costs
- Retention of strategic isobutanol assets with 1M gallon annual production capacity
- Potential future benefits from side-by-side operational model with ethanol assets
- Significant reduction in total ethanol production capacity (18M gallons/year)
- Sale price appears relatively low for an 18M gallon facility
- Transaction closing is contingent on A.E. securing financing
Insights
Gevo's $7M facility sale reduces cash burn while retaining strategic isobutanol assets, improving financial position despite modest sale price.
Gevo's decision to sell its Luverne ethanol facility for $7 million represents a pragmatic financial move for a company focusing on its advanced biofuels strategy. The transaction structure is revealing: $2 million cash at closing with $5 million in future payments, plus elimination of approximately $3 million in annual idling costs. This deal immediately improves Gevo's cash position while reducing ongoing operational expenses—a critical consideration for a company still working toward commercial-scale production of its next-generation fuels.
The
This transaction effectively transforms an idled, cash-draining asset into immediate liquidity while preserving the company's core technological capabilities. The facility has been idle since 2022, indicating it wasn't contributing to revenue streams. The deal structure—keeping isobutanol capabilities while divesting ethanol production—aligns with Gevo's strategic pivot toward higher-margin, sustainable aviation fuel (SAF) and specialty products while reducing capital requirements and operational complexity.
From A.E. Innovation's perspective, acquiring an established biorefinery with plans to restart ethanol production creates potential synergies with Gevo's retained operations, possibly enabling both companies to benefit from shared infrastructure and complementary production capabilities.
ENGLEWOOD, Colo., May 28, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that it has entered into a definitive agreement to sell Agri-Energy, LLC (“Agri”), a wholly owned subsidiary of Gevo, to A.E. Innovation, LLC (“A.E.”) for
A.E., an agriculture-oriented buyer group located in Minnesota, will acquire the ethanol plant and a portion of the land with the intent to restart ethanol production, which has been idled since 2022. A.E. also intends to make the site available for other companies to scale up new technologies and ideas as an innovation hub.
“We’re seeing rapid innovation in the direction of bio-based fuels and chemicals and Agri-Energy has the demonstrated history that it can work on the cutting edge,” says Dave Kolsrud, principal of A.E. Innovation, LLC. “We see Gevo and others making strides and we know we’ll be a part of that. We are excited to host the next generation of biofuel innovations that need a friendly, practical place where they can scale them up. That’s Luverne, with its history of innovation, its low-carbon corn supply, wind power, and great people.”
Over the last several years, the Luverne plant, in conjunction with local farmers, has been used as a demonstration site for educating Gevo’s stakeholders about regenerative agriculture and the versatility of corn and its co-products, as well as biofuel production, including synthetic aviation fuel (“SAF”), isobutanol, and ethanol. Gevo and A.E. look forward to continuing and expanding upon this valuable stakeholder outreach.
“We see tremendous potential for future growth and new partnerships with A.E. Innovation,” says Patrick Gruber, CEO of Gevo. “Minnesota’s farming communities, especially in places like Luverne, are leading the way with smart, sustainable agricultural practices. We believe it's the perfect foundation for building innovative solutions in carbohydrate-based energy and chemicals that the world urgently needs.”
Gevo notes that the sale of Agri-Energy to A.E. Innovation provides
The transaction is expected to close by the end of 2025, subject to the procurement of financing by A.E. and the satisfaction of other customary closing conditions.
About Gevo
Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including SAF, motor fuels, chemicals, and other materials that provide U.S.-made solutions. By investing in the backbone of rural America, Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States, turning by-products into clean, reliable energy. Gevo also operates an ethanol plant with an adjacent carbon capture and sequestration (“CCS”) facility, further solidifying America’s leadership in energy innovation. Additionally, Gevo owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo’s market-driven “pay for performance” approach regarding carbon and other sustainability attributes, helps ensure value is delivered to our local economy. Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in tracking, measuring and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market.
For more information, see www.gevo.com.
About A.E. Innovation, LLC
A.E. Innovation, LLC, is an agriculture-oriented buyer group located in Minnesota founded to purchase the ethanol-production assets of Agri-Energy, LLC, with the intent of operating the plant as an innovation facility providing companies with the opportunity to certify that new technologies can transition from laboratory or bench-top status to full production-level performance using locally sourced, regeneratively grown corn as a feedstock. For more information regarding innovation opportunities at the Luverne, MN facility, contact David Kolsrud (507-920-5348) email: david@dakrenewableenergy.com or Dan Heard (605-929-2047) email: dan@dakrenewableenergy.com.
Forward Looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements, including statements related to the expected closing of the acquisition or the timing thereof, and future plans for the assets. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this release.
These forward-looking statements are identified by the use of terms and phrases such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “goal,” “intend,” “plan,” “potential,” “predict,” “project,” “target” and similar terms and phrases or future or conditional verbs such as “could,” “may,” “should,” “will,” and “would.” However, these words are not the exclusive means of identifying such statements. Although we believe that our plans, intentions and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.
Important factors that could cause actual results or events to differ materially from our expectations, or cautionary statements, include among others, failure to satisfy any conditions to the closing of the transaction in a timely manner or at all; the occurrence of any event that could give rise to termination of the definitive agreement, including the inability to obtain financing; changes in legislation or government regulations affecting the proposed transaction or the parties; and other risk factors or uncertainties identified from time to time in Gevo’s filings with the US Securities and Exchange Commission (“SEC”). All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements identified above and in the section entitled “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties.
We caution you that the important factors referenced above may not reflect all of the factors that could cause actual results or events to differ from our expectations. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Media Contact
Heather L. Manuel
VP, Stakeholder Engagement & Partnerships
PR@gevo.com
IR Contact
Eric Frey
VP, Finance & Strategy
IR@Gevo.com
FAQ
What is the sale price for GEVO's Luverne ethanol facility?
What assets will GEVO retain after selling the Luverne facility?
How much will GEVO save annually from this sale?
What are A.E. Innovation's plans for the Luverne facility?
When is the GEVO Luverne facility sale expected to close?
