Gevo Inc has announced plans to acquire the ethanol production plant and carbon capture and sequestration (CCS) assets of Red Trail Energy LLC for $210 million.
This acquisition will enable Gevo to add net-zero sustainable aviation fuel (SAF) production capacity to the site.
Red Trail Energy is a 65 million gallon per year (MMgy) ethanol plant located in Richardton, North Dakota.
The facility has been operating its CCS project since June 2022 and currently has a total sequestration capacity of 1 million metric tons per year.
The transaction is expected to close in the first quarter of 2025, subject to various approvals and conditions.
Gevo plans to retain all of the approximately 50 full-time employees currently working at the facility.
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Gevo officials did not disclose a specific timeline for adding SAF capacity to the Red Trail Energy site but discussed potential plans to further reduce the plant’s carbon intensity (CI).
Chris Ryan, President and Chief Operating Officer of Gevo, highlighted the plant’s existing low-carbon ethanol production and its potential for expansion.
Once the transaction closes, Gevo intends to optimize the asset with partners to further decarbonize operations.
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This includes exploring options such as installing a combined-heat-and-power (CHP) system with carbon capture and integrating renewable energy sources like wind, solar, and biogas.
Patrick Gruber, CEO of Gevo, explained how the Red Trail Energy acquisition aligns with the company’s broader strategy, including its proposed Net-Zero 1 SAF production facility in South Dakota.
The excess CCS capacity at Red Trail Energy offers the potential to capture carbon from Net-Zero 1 if the Summit Carbon Solutions pipeline project experiences delays.
