Gevo Inc. (NASDAQ:GEVO) reported on Wednesday that it has agreed to sell its ethanol subsidiary, Agri-Energy LLC, to A.E. Innovation LLC for $7 million. The deal includes Gevo’s idle 18-million-gallon-per-year ethanol plant in Luverne, Minnesota, which has been offline since 2022.
Gevo will retain key isobutanol assets and a portion of the site for future use, enabling the potential production of up to 1 million gallons annually of isobutanol, convertible into specialty chemicals or renewable jet fuel.
A.E. Innovation, a Minnesota-based agriculture group, plans to restart ethanol production and develop the location into a hub for scaling clean fuel technologies.
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The sale provides Gevo with $2 million upfront and $5 million in future payments while reducing approximately $3 million in annual idling costs.
Gevo CEO Patrick Gruber emphasized the opportunity to build new partnerships and highlighted Minnesota’s leadership in sustainable agriculture.
The restart of ethanol production is expected to benefit Luverne’s local economy, bolster support for farmers, and reinforce the town’s role in the renewable energy transition.
Gevo announced yesterday the appointment of Oluwagbemileke (Leke) Agiri as Chief Financial Officer, effective May 21, 2025. He succeeds L. Lynn Smull, who will take on a new role as Executive Vice President and Senior Advisor to the CEO.
The leadership change reflects Gevo’s long-term succession planning and positions the company for its next phase of strategic growth.
Related ETFs: Invesco WilderHill Clean Energy ETF (NYSE:PBW), First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN).
Price Action: GEVO shares are trading lower by 1.75% at $1.12 last check on Wednesday.
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