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Gevo North Dakota Sells Its Remaining 2025 45Z Production Tax Credits for $30 Million, Bringing the Contracted Total for the Year to $52 Million

GEVO
  • Gevo Inc. announced contracted sales of its remaining 2025 Section 45Z Clean Fuel Production Credits from its North Dakota facility for $30 million to Stifel Financial Corp. & Capital Community Bank.
  • Total 2025 credit sales reached $52 million when combined with a previously announced $22 million sale in July.
  • These production tax credits were generated based on ethanol production volumes at GevoND while accounting for operating carbon sequestration & efficiencies.
  • Gevo claims to be one of the first ethanol producers to sell Section 45Z credits directly to tax credit purchasers.
  • Section 45Z is a federal incentive initially enacted in 2022 & extended through 2029 under the "One Big Beautiful Bill Act."
  • Dr. Paul D. Bloom stated credit sales provide cash for reinvestment in ethanol & carbon businesses to improve throughput, expand margins, & increase production of fuel & co-products.
  • CFO Leke Agiri confirmed the transactions are backed by a tax insurance policy to mitigate buyer risk & noted the cash flow enhancement is expected to be recurring.
  • Gevo operates an ethanol plant with an adjacent carbon capture, utilization, & sequestration facility & a Class VI carbon-storage well.
  • The company also owns a large dairy-based RNG facility & developed the world's first production facility for specialty alcohol-to-jet fuels since 2012.
  • Stifel Financial Corp. is a full-service investment firm providing securities brokerage, investment banking, & related financial services.
  • Capital Community Bank is a Utah-based community institution founded in 1993 with branches across multiple Utah cities.