Gevo has completed the sale of Agri-Energy to AE Innovation.
The transaction includes Agri’s 18-million-gallon-per-year ethanol-production facility and a portion of the adjacent land, located in Luverne, Minnesota.
For Gevo, this represents the divestiture of a non-core asset, providing $2 million (€1.74 million) in cash up front and $5 million (€4.3 million) in future cash instalments, while saving approximately $3 million (€2.61 million) per year in idling costs.
Under the terms of the sale, Gevo retained ownership of the majority of the isobutanol production assets on site and approximately 30 acres of land.
AE, an agriculture-oriented buyer group based in Minnesota, acquired Agri with the intent to restart ethanol production at the plant, which has been idled since March 2020. AE intends to use the site to produce ethanol and to make the location available for other companies to scale up new technologies and innovations as an innovation hub.
Gevo’s retained assets at the site will allow the company to continue utilising its differentiated and patented fermentation technologies, with the capacity to produce 1 million gallons per year of low-carbon isobutanol for use in chemical markets, as feedstock for racing fuels, gasoline, and jet fuel.
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