Gevo acquires Red Trail Energy to expand SAF and CCS portfolio
Gevo, Inc. (NASDAQ: GEVO), a leading developer of net-zero hydrocarbon fuels based in Englewood, Colorado, U.S.A., has acquired the ethanol production plant and carbon capture and sequestration (CCS) assets of Red Trail Energy, LLC in Richardton, North Dakota. The USD210 million deal, subject to customary adjustments, includes operational personnel and pore space rights for CCS. The newly acquired site will be renamed Net-Zero North.
This acquisition strengthens Gevo’s strategy in sustainable aviation fuel (SAF) production and is projected to contribute USD30 million to USD60 million in adjusted EBITDA annually.
“This transformational acquisition marks the start of Net-Zero North,” said Patrick Gruber, CEO of Gevo. “Looking forward, this is a great site to expand the plant to produce SAF, along with other additional co-located projects.”
The proven CCS site will allow Gevo to permanently store biogenic carbon dioxide, further improving carbon abatement capabilities for the Net-Zero 1 (NZ1) plant currently under development in South Dakota.
Financing and growth potential
The acquisition was funded through Gevo’s equity capital and a USD105 million senior secured term loan from Orion Infrastructure Capital (OIC), a U.S.-based private investment firm. OIC has also expressed interest in providing up to USD100 million in additional debt for future expansions at Net-Zero North.
“Net-Zero North is a highly efficient operation with leading carbon intensity scores,” said Ethan Shoemaker, investment partner at OIC. “This acquisition strengthens Gevo’s business and positions it for significant growth.”
Future expansion and carbon abatement leadership
Gevo’s plans for Net-Zero North include the development of a Net-Zero alcohol-to-jet (ATJ) SAF plant. The facility is expected to benefit from carbon credits under Section 45Z, as its CCS infrastructure achieves a carbon intensity (CI) score up to 30 points lower than conventional ethanol plants.
The transaction highlights North Dakota’s synergistic approach to energy and agriculture, with local partnerships expected to drive future business expansion.
For more information, visit www.gevo.com.
