Omaha: Green Plains Inc. (NASDAQ: GPRE), a biorefining company valued at $603 million, has completed the sale of its ethanol plant in Rives, Tennessee, to POET Biorefining – Obion, LLC for $190 million in cash. The company announced the closure of the deal on Friday.
The deal, announced earlier, also includes about $20 million in working capital, which will be finalized after closing. Green Plains said the transaction will improve its balance sheet by eliminating junior mezzanine debt, boosting liquidity, and giving the company more flexibility as it focuses on portfolio optimization and carbon reduction efforts.
Green Plains produces renewable fuels and sustainable ingredients by converting crops into low-carbon energy and feedstocks. The company is also rolling out carbon capture and storage projects, with three facilities expected to begin operations later this year.
Alongside the sale, Green Plains recently struck a deal with Freepoint Commodities to sell Clean Fuel Production Credits, known as 45Z credits, created under the Inflation Reduction Act. Starting in 2025, credits will come from its three Nebraska plants before expanding to three more facilities. UBS estimates the credits could add $40–50 million to annual EBITDA.
In another boost, Oppenheimer upgraded Green Plains’ stock rating from “Perform” to “Outperform,” setting a price target of $14.00. The upgrade reflects the company’s improved financial standing following the Obion plant sale and its strategy to expand clean energy initiatives.
