Gevo announced the sale of its remaining 2025 Section 45Z Clean Fuel Production Credits for $30 million to Stifel Financial Corp. and Capital Community Bank, bringing the company’s total credit sales for the year to $52 million when combined with a $22 million sale announced in July. The credits were generated from ethanol production at Gevo’s North Dakota facility, which captures 100 % of its CO₂ emissions and has a carbon‑capture capacity of up to one million tons per year.
The Section 45Z credit is a tax incentive created by the Inflation Reduction Act that rewards low‑carbon fuels with a per‑gallon tax credit. By monetizing the carbon attributes of its ethanol, Gevo turns a regulatory benefit into a non‑dilutive cash source, while also reinforcing its commitment to carbon sequestration and low‑carbon fuel production.
Proceeds from the sale will be reinvested in Gevo’s ethanol and carbon businesses to improve throughput, expand margins, and increase production of fuel and co‑products. Management emphasized that the cash will also support the development of voluntary carbon markets and provide backing for U.S. corn growers, aligning the company’s financial strategy with its broader sustainability goals. The infusion is expected to help Gevo achieve positive adjusted EBITDA in 2025, a key milestone in its growth plan.
Chief business officer Dr. Paul D. Bloom noted that the transaction is backed by a tax‑insurance policy that mitigates residual risk for buyers, making the credits a low‑risk, recurring revenue stream. Chief financial officer Leke Agiri added that the sale “greatly enhances our cash flow from operations and is expected to be recurring,” underscoring the company’s confidence in the stability of its credit portfolio.
Gevo’s 2025 credit sales now total $52 million, a 23 % increase over the $40 million in 2024, reflecting the company’s expanding carbon capture operations and the growing demand for low‑carbon fuel credits. The sale demonstrates Gevo’s ability to monetize environmental attributes and diversify its revenue streams beyond traditional fuel sales, positioning it for further expansion of its North Dakota operations and broader low‑carbon fuel production.
The transaction highlights Gevo’s strategic use of regulatory incentives to strengthen its balance sheet, support operational investments, and move closer to its goal of positive adjusted EBITDA, while also reinforcing its leadership in the emerging voluntary carbon market.
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