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 deal includes Agri-Energy’s ethanol production facility in Luverne, Minnesota, which has a capacity of 18 million gallons per year.
While the sale includes the ethanol plant and part of the land, Gevo will retain certain assets related to isobutanol production, along with a portion of the remaining land at the site. These retained assets could enable Gevo to produce up to 1 million gallons annually of isobutanol—a versatile chemical used in specialty applications or convertible into isooctane and sustainable aviation fuel (SAF).
A.E. Innovation, a locally rooted, agriculture-focused investment group, intends to restart ethanol production at the facility, which has been idle since 2022. In addition to reviving ethanol operations, A.E. plans to establish the site as a platform for emerging technologies, creating an innovation hub for scaling new ideas in biofuels and agri-tech.
“Agri-Energy has a proven track record of pioneering work in bio-based fuels and chemicals,” said Dave Kolsrud, principal at A.E. Innovation. “We’ve seen the momentum Gevo and others are building, and we’re proud to be part of that forward movement. Luverne, with its history of innovation, access to low-carbon corn, wind energy, and strong community, is the ideal place to support the next generation of biofuel solutions.”
Over the years, the Luverne facility has played a key role in showcasing regenerative farming practices, in partnership with local growers. It has served as a demonstration site for Gevo’s stakeholders, highlighting the potential of corn and its by-products in biofuel manufacturing—including ethanol, isobutanol, and SAF.
Gevo and A.E. Innovation expressed their commitment to expanding this stakeholder engagement and continuing to support education and innovation at the site.
“We see strong growth prospects and the opportunity for new partnerships through A.E. Innovation,” said Patrick Gruber, CEO of Gevo. “Communities like Luverne are leading the way in smart, sustainable agriculture, which makes them the perfect setting for advancing innovative solutions in renewable energy and green chemicals.”
The transaction terms include $2 million in cash payable at closing, with an additional $5 million to follow under the terms of the agreement. Gevo anticipates the sale will also result in annual savings of approximately $3 million by eliminating current costs associated with the idle facility. Moreover, the company sees potential in a side-by-side model, running isobutanol fermentation alongside ethanol production.
Restarting ethanol output is expected to provide economic benefits for the Luverne area, supporting local farmers and bolstering the broader regional economy.
The sale is expected to close by the end of 2025, pending A.E. Innovation’s financing and the fulfillment of customary closing conditions.
