Insights

Gevo to acquire ethanol plant and CCS assets from Red Trail Energy in North Dakota for $210mm

DETAILS

- Gevo has announced its agreement to acquire the ethanol production and carbon capture assets of Red Trail Energy for $210 million. - The acquisition is expected to make Gevo's Adjusted EBITDA positive in 2025. - Gevo aims to market carbon abatement along with advanced liquid fuels to enhance shareholder value. - This deal aligns with Gevo's strategy and provides a site for future sustainable aviation fuel production. - The acquisition complements Gevo’s Net-Zero 1 SAF project and offers access to a privately owned CCS site. - The existing CCS assets have a sequestration capacity of 1 million metric tons annually, with 160,000 metric tons currently utilized. - The acquisition enhances Gevo’s capabilities in feedstock procurement, plant operations, and carbon abatement. - The Red Trail Energy facility includes a low-carbon ethanol plant with a capacity of 65 million gallons per year. - The CCS site has been operational since 2022 and generates monetizable tax credits. - The plant is known for safe and reliable operations, and Gevo plans to retain its current employees. - The CCS asset offers significant expansion potential in carbon sequestration capabilities. - Gevo CEO noted that this investment helps pave the way to profitability before the Net-Zero 1 project's commercial operation. - The acquisition will drive market development for sequestered carbon and create job opportunities in rural communities. - The transaction is set to close in the first quarter of 2025, pending regulatory approvals and other conditions. - Gevo is financing the acquisition through a mix of asset-level debt and cash. - The acquisition underscores Gevo's commitment to sustainability and addressing climate change. - The company's approach includes converting renewable energy into sustainable fuels and chemicals with a net-zero carbon footprint. - Gevo's innovative technology focuses on producing sustainable aviation fuel, motor fuels, and other materials. - The investors can expect an archive of the conference call discussing the transaction will be available post-event on Gevo’s website.

COMPANIES

Gevo, Red Trail Energy, Verity, Ocean Park Securities, Faegre Drinker Biddle & Reath, Argonne National Laboratory

TAGS

Low carbon fuels

The Coalition for Green Capital is Open for Business Proposals as First U.S. National Green Bank

DETAILS

- The Coalition for Green Capital has opened the first U.S. national green bank for business proposals. - CGC has secured $5 billion to invest in public-private partnerships aimed at accelerating clean power projects. - The organization plans to improve the quality of life for Americans by creating jobs and reducing emissions. - CGC's 2023 annual report revealed a record-breaking investment of $10.6 billion, a $6 billion increase from 2022. - Consortium partners contributed $5.2 billion in capital, joining with $5.4 billion in private funding. - Total public-private investment due to green banks and partners has reached $25.4 billion since 2011. - The American Green Bank Consortium has demonstrated the benefits of collaboration and public-private investing. - CGC anticipates mobilizing $21.1 billion in private-public investments in clean power projects within the first year. - CGC is equipped with a new senior management team ready to build a clean power platform in communities. - The leadership team includes experienced professionals in green finance, project development, and compliance. - Chief Network Officer Stephen Brown focuses on connecting the national green bank to consortium members and community groups. - Chief Impact Officer Jessica Buendia leads efforts to maximize affordable, clean power delivery to U.S. communities. - Chief Operating & Compliance Officer Jeff Diehl is tasked with creating technology platforms to support equitable clean energy investment. - Chief Capital Officer and Head of Investments Alfred Griffin is responsible for investment strategy and capital mobilization. - Chief Investment Officer Michael Hoffman oversees all investment activities and scaling of investment portfolios. - Chief Administration & Development Officer Eli Hopson manages fundraising and partnerships for clean energy initiatives. - CEO Reed Hundt expresses the significance of launching the national green bank and building a network of green investors. - Chairman Bryan Garcia emphasizes the urgency of mobilizing private investment, particularly in underinvested communities, to combat climate change and promote social equity. - The Coalition for Green Capital aims to address environmental injustice and reduce greenhouse gas emissions through green bank financing.

COMPANIES

Coalition for Green Capital, American Green Bank Consortium, Clean Energy Fund of Texas, Dream.Org, Rhode Island Infrastructure Bank, NY Green Bank, Generate Capital, The Blackstone Group, Riverstone, Xcel Energy, Connecticut Green Bank

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