Gevo invests $1.5 million in wind power provider to secure 5MW of power for Luverne facility

In Colorado, Gevo announced it secured the supply of 5.0 MW of fully renewable electricity for its Agri-Energy production plant located in Luverne, MN from an affiliate of Juhl Energy. The electricity generated from wind will be wired directly to Agri-Energy, enabling it to claim the renewable benefit of lower carbon intensity score under the Low Carbon Fuel Standard (LCFS).

As part of the project financing, Gevo invested $1.5 million in the preferred stock of Juhl Clean Energy Assets, Inc. (JCEA) out of a total funding round of $9 million.  JCEA is the owner and operator of the wind project and the funding round will enable the acquisition and construction of the wind towers needed to supply Agri-Energy. The wind electricity should be on-line and available to Gevo’s Agri-Energy no later than mid-year 2020. Gevo’s Agri-Energy has agreed to purchase the electricity from the City of Luverne, and the Renewable Energy Credits from an affiliate of JCEA. Gevo expects no material cost increase in its electricity pricing.

This wind energy produced will help to “decarbonize” Gevo’s Agri-Energy plant in Luverne, MN, allowing Gevo to produce biofuels with a lower carbon intensity score. This wind project is the first of several steps that are expected to lead to improved profitability for Gevo by reducing the carbon footprint of its fuel products enabling Gevo to capture value from the carbon intensity reduction, or reduced carbon footprint of its products.