Gevo Inc. has signed a definitive agreement to sell its wholly owned subsidiary, Agri-Energy LLC, to Minnesota-based A.E. Innovation LLC for $7 million. The transaction includes the 18-million-gallon-per-year ethanol production facility located in Luverne, Minnesota. The sale marks a significant step in Gevo鈥檚 ongoing strategic repositioning, as it focuses on renewable fuels and sustainable chemicals.
As part of the agreement, Gevo will retain select isobutanol-related assets and a portion of the undeveloped land at the Luverne site. These retained assets could support future production of up to 1 million gallons annually of isobutanol, which may be sold as a specialty chemical or converted into renewable fuels such as isooctane and sustainable aviation fuel (SAF).
Ethanol production at the Luverne facility has been idled since 2022. A.E. Innovation, an agriculture-driven investment group, intends to restart operations and repurpose the site into a hub for scaling new technologies in the biofuel and renewable chemicals sectors.
鈥淲e鈥檙e seeing rapid innovation in bio-based fuels and chemicals, and Agri-Energy has a strong track record of being on the leading edge,鈥� said Dave Kolsrud, principal of A.E. Innovation. 鈥淟uverne, with its low-carbon corn, wind power, and community spirit, is the right place to advance the next generation of biofuel technologies.鈥�
The Luverne facility has played a key role in demonstrating regenerative agriculture practices in collaboration with local farmers. It has also served as an educational platform showcasing the versatility of corn and the potential of biofuels, including ethanol, SAF, and isobutanol.
Gevo CEO Patrick Gruber expressed optimism about the partnership with A.E. Innovation. 鈥淲e see tremendous opportunities for growth and collaboration,鈥� Gruber said. 鈥淟uverne and its farming community are ideal for building forward-thinking, sustainable solutions based on carbohydrate-derived energy and chemicals.鈥�
Under the terms of the deal, Gevo will receive $2 million at closing, with an additional $5 million to follow under the purchase agreement. The transaction is also expected to generate about $3 million in annual savings by eliminating current facility idling costs. Gevo anticipates potential synergies from operating isobutanol production alongside renewed ethanol output.
The transaction is expected to close by the end of 2025, pending A.E. Innovation鈥檚 financing and standard closing conditions. Restarting ethanol production is projected to bring economic benefits to Luverne and surrounding communities by supporting local agriculture and boosting the regional economy.
Gevo is a forward-looking, diversified energy company dedicated to powering America鈥檚 future with affordable, drop-in renewable fuels that enhance energy security, reduce carbon emissions, and support rural economic development. Leveraging cutting-edge technology, Gevo produces a wide range of sustainable products鈥攊ncluding sustainable aviation fuel (SAF), motor fuels, chemicals, and other materials鈥攐ffering U.S.-based solutions to global challenges. With a strong focus on rural America, Gevo鈥檚 business model involves developing, financing, and operating production facilities that generate employment and help rejuvenate local communities.
