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Gevo to Sell Luverne, Minnesota Ethanol Facility to A.E. Innovation; Will Retain Isobutanol Assets for Future Innovation
GEVOGevo(GEVO) GlobeNewswire·2025-05-28 13:00

Core Viewpoint - Gevo, Inc. has entered into a definitive agreement to sell its subsidiary Agri-Energy, LLC to A.E. Innovation, LLC for 7million,whichincludesanethanolproductionfacilityinMinnesota,whileretainingcertainisobutanol−relatedassetsforfutureproduction[1][4].Group1:TransactionDetails−ThesaleincludesAgri′s18−million−gallon−per−yearethanolproductionfacilitylocatedinLuverne,Minnesota[1].−Gevowillreceive7 million, which includes an ethanol production facility in Minnesota, while retaining certain isobutanol-related assets for future production [1][4]. Group 1: Transaction Details - The sale includes Agri's 18-million-gallon-per-year ethanol production facility located in Luverne, Minnesota [1]. - Gevo will receive 2 million in cash upon closing and an additional 5millioninfuturecashunderthepurchaseagreement[4].−Thetransactionisexpectedtoclosebytheendof2025,subjecttofinancingandcustomaryclosingconditions[5].Group2:FutureOperationsandInnovations−A.E.Innovationplanstorestartethanolproductionatthefacility,whichhasbeenidledsince2022,andaimstousethesiteasaninnovationhubfornewtechnologies[2][3].−TheLuverneplanthasbeenademonstrationsiteforregenerativeagricultureandbiofuelproduction,includingsyntheticaviationfuel,isobutanol,andethanol[3].−Gevoanticipatespotentialfuturebenefitsfromisobutanolfermentationthroughaside−by−sideoperationalmodelwiththeethanolassets[4].Group3:StrategicImportance−Thesaleisexpectedtoprovideannualsavingsofapproximately5 million in future cash under the purchase agreement [4]. - The transaction is expected to close by the end of 2025, subject to financing and customary closing conditions [5]. Group 2: Future Operations and Innovations - A.E. Innovation plans to restart ethanol production at the facility, which has been idled since 2022, and aims to use the site as an innovation hub for new technologies [2][3]. - The Luverne plant has been a demonstration site for regenerative agriculture and biofuel production, including synthetic aviation fuel, isobutanol, and ethanol [3]. - Gevo anticipates potential future benefits from isobutanol fermentation through a side-by-side operational model with the ethanol assets [4]. Group 3: Strategic Importance - The sale is expected to provide annual savings of approximately 3 million from current facility idling costs [4]. - The transaction is seen as a way to support local farmers and strengthen the regional economy in Luverne [4]. - Gevo emphasizes the importance of Minnesota's farming communities in developing sustainable agricultural practices as a foundation for innovative energy solutions [4].