Gevo Expands Presence in Dakotas' Alternative Fuels Industry

Researched by Industrial Info Resources (Sugar Land, Texas)--Gevo Incorporated (NASDAQ:GEVO) (Englewood, Colorado), which specializes in the development of net-zero hydrocarbon fuels, broadened its market footprint earlier this week with a $210 million purchase of Red Trail Energy's (Richardton, North Dakota) ethanol-production and carbon capture and sequestration (CCS) assets. The move also boosts Gevo's presence in North and South Dakota, where Industrial Info is tracking more than $3.6 billion worth of active and proposed projects for the production of renewable natural gas (RNG), renewable diesel and "green" commodities such as hydrogen, methanol and ammonia.

Click on the image at right for a graph detailing parent companies for related projects in the Dakotas, by total investment value.

Red Trail's ethanol plant in Richardton, North Dakota, produces about 64 million gallons per year. It completed the addition of a CCS unit in 2022, which captures up to 180,000 metric tons per year of CO2. Gevo believes the property could have a total sequestration capacity of 1 million metric tons per year and "could accommodate many future net-zero-type and related projects."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuels Plant Database can learn more about the Richardton facility in a detailed plant profile.

The deal between Gevo and Red Trail follows the U.S. Patent and Trademark Office's decision earlier this week to approve a patent for Gevo's ethanol-to-olefins (ETO) process, which Gevo says cements its position "as a leader in intellectual property surrounding bio-based renewable fuel and chemical production from alcohols." Gevo says the process uses "certain proprietary catalyst combinations for converting ethanol into olefins," which are used in the production of biofuels such as sustainable aviation fuel (SAF).

The transaction is expected to close by the first quarter of 2025.

Gevo already is proposing the Dakota Renewable Hydrogen Project in Lake Preston, South Dakota, which would have two major components: a production facility, which would manufacture 45 million gallons per year of jet fuel and renewable gasoline products, and a "Power-to-X" green hydrogen unit, which would use Proton Exchange Membrane (PEM) electrolyzer technology developed by Cummins Incorporated (NYSE:CMI) (Columbus, Indiana) to produce net-zero hydrogen. Last year, Gevo finalized a partnership with Zero6 Energy Incorporated (Chanhassen, Minnesota) to develop the project.

Subscribers can learn more about the Dakota Renewable Hydrogen Project from a detailed plant profile and reports on the production facility and green hydrogen unit.

NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) is among the other major renewable-energy developers proposing green-commodity projects in the Dakotas. It is evaluating sites in southeastern North Dakota for a possible green hydrogen plant, which would be powered by an adjacent windfarm. Precise capacities currently are unknown, although the windfarm would have an output of between 300 and 800 megawatts (MW). Subscribers can read detailed reports on the green hydrogen plant, and windfarm.

At least one smaller-scale Alternative Fuels Industry project is under construction in the Dakotas: Brightmark LLC's (San Francisco, California) $40 million Full Circle Dairy Farm RNG Plant in Hurley, South Dakota. The company expects to produce four pipeline-quality RNG from cow manure, via four anaerobic digesters. BIOGEST America Incorporated (Vienna, Austria), which is serving as operator, says the plant will have a thermal output of 156,000 million British thermal units per annum of RNG. Subscribers can learn more from a detailed project report.

"RNG is the only renewable-energy source that can be carbon-negative, as it significantly reduces methane emissions from agricultural operations," BIOGEST said in a press release, adding that its RNG plants "produce not only pipeline-quality green gas, but also an organic fertilizer that helps to lower the use of chemical fertilizers in agriculture."

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and proposed projects for the production of renewable natural gas (RNG), renewable diesel and green commodities.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).