Gevo sells Luverne ethanol plant to A.E. Innovation, retains isobutanol assets to advance low-carbon fuel and chemical technologies.
Gevo, Inc., a leading renewable fuels and sustainable chemicals company, has officially announced the completion of its sale of Agri-Energy, LLC — a wholly owned subsidiary — to A.E. Innovation, LLC. The transaction marks a significant strategic step for Gevo as it continues to refine its portfolio and focus on core technology and innovation-driven projects. The deal includes the transfer of Agri’s ethanol production facility, which has an annual capacity of 18 million gallons, along with a portion of the adjacent property located in Luverne, Minnesota.
The sale represents a carefully planned divestment of a non-core asset by Gevo, yielding immediate and long-term financial benefits. The company has received $2 million in upfront cash from A.E. Innovation and is set to collect an additional $5 million in future cash installments. Importantly, the divestiture will also save Gevo approximately $3 million per year in idling and maintenance costs, improving operational efficiency and liquidity.
Despite selling the ethanol facility, Gevo has strategically retained ownership of its isobutanol-related production assets at the Luverne site. The company continues to hold approximately 30 acres of land, which include the critical infrastructure needed for the production of renewable isobutanol — a specialty product that serves as a key feedstock for chemicals, racing fuels, gasoline, and sustainable aviation fuel (SAF). The retained assets allow Gevo to maintain its innovative fermentation technologies, capable of producing nearly 1 million gallons of low-carbon isobutanol annually.
On the buyer’s side, A.E. Innovation, a Minnesota-based agriculture-focused investment group, plans to revive ethanol production at the Luverne facility. The plant has been idle since March 2020, primarily due to market disruptions and the impacts of the COVID-19 pandemic. A.E. Innovation’s strategy involves not only restarting ethanol output but also transforming the site into an innovation hub. The company intends to make the facility accessible to other technology developers and clean-energy startups seeking to test, pilot, or scale new production methods within the biofuels and renewable chemicals sectors.
For Gevo, this transaction reinforces its broader corporate strategy of channeling resources toward high-value, technology-intensive operations. By retaining its proprietary isobutanol production systems, the company preserves its competitive edge in low-carbon fuel and chemical solutions, while freeing capital from non-essential assets. The sale also aligns with Gevo’s vision to expand its sustainable fuel production capabilities through scalable technologies and strategic partnerships.
Overall, the completion of the Luverne facility sale represents a mutually beneficial outcome — providing A.E. Innovation with a foundation to reestablish ethanol production in Minnesota while enabling Gevo to focus on advancing next-generation renewable fuel technologies that support the global transition toward a low-carbon economy.
