Gevo, Inc. (NASDAQ: GEVO) has announced the completion of its sale of Agri-Energy, LLC, a wholly owned subsidiary, to A.E. Innovation, LLC, an agriculture-focused company based in Minnesota. The transaction includes Agri-Energy’s 18-million-gallon-per-year ethanol production facility and part of the adjacent land located in Luverne, Minnesota, according to the press release.
This sale marks a strategic divestment for Gevo, allowing the company to streamline operations and focus on its core low-carbon fuel and chemical businesses.
Financial Terms and Strategic Benefits
The deal provides $2 million in upfront cash and an additional $5 million in future installment payments to Gevo. It also eliminates approximately $3 million per year in idling costs associated with the facility, which has been inactive since 2020.
As part of the agreement, Gevo retains ownership of most of the isobutanol production assets at the Luverne site and around 30 acres of land. This retained infrastructure will support the company’s continued work in sustainable fuel technologies.
Plans for Ethanol Production Restart
A.E. Innovation intends to restart ethanol production at the Luverne facility, which has been idled since March 2020. Beyond ethanol manufacturing, the buyer plans to use the site as a collaborative innovation hub, providing space for other companies to test and scale emerging agricultural and biofuel technologies.
Gevo’s Ongoing Operations at Luverne
Although the ethanol plant has been sold, Gevo will continue operating at the Luverne site using its patented fermentation technology. The company maintains the capacity to produce up to 1 million gallons per year of low-carbon isobutanol, used in chemical markets, racing fuels, gasoline blends, and sustainable aviation fuel (SAF) feedstock.
Strategic Outlook
The sale aligns with Gevo’s broader strategy to optimize its asset portfolio and focus resources on scalable, low-carbon fuel solutions. By retaining its core technology assets in Luverne, Gevo aims to continue advancing innovation in renewable fuels while enabling new industrial uses for isobutanol.
