Gevo North Dakota sells its remaining production tax credits

Gevo has revealed the contracted sales of its remaining Section 45Z Clean Fuel Production Credits for 2025 from its Gevo North Dakota facility totalling $30 million (€26 million) to Stifel Financial Corp. and Capital Community Bank, bringing the total sales for 2025 to $52 million (€45 million), when combined with the previously announced $22 million worth of credits sold in July.
These production tax credits were generated based on volumes of ethanol produced at GevoND and taking into account operating carbon sequestration and operating efficiencies. Gevo believes it is one of the first ethanol producer to sell Section 45Z credits directly to tax credit purchasers.
Section 45Z, also known as the Clean Fuel Production Credit, is a federal incentive designed to support domestic biofuel production and agriculture. Initially enacted in 2022, the credit was extended through 2029 under the “One Big Beautiful Bill Act.”
“The amount of production tax credits we generate is determined by the volume of ethanol produced that satisfies the Section 45Z requirements,” said Paul Bloom, chief business officer at Gevo.
“The cash from these sales enables reinvestment in our ethanol and carbon businesses to improve throughput, expand margins, and increase production of fuel and feed co-products, and to develop voluntary carbon markets — all while supporting US corn growers.”
“Our Section 45Z tax credit sale continues to be backed by a tax insurance policy that mitigates much of the residual risk for buyers in credit transfers, which we view as low risk to begin with,” said Leke Agiri, chief financial officer of Gevo.
“We’d like to thank our buyers and transaction participants in working with us to achieve this milestone. We expect this to greatly enhance our cash flow from operations, and we expect it will be reoccurring. We are really proud of these deals.”