Gevo subsidiary shows off new wind turbines, waves goodbye to fossil fuels at Minnesota facility

2020-03-12 10:33:00
The electricity will be wired directly to Agri-Energy and is expected to be available beginning in April
Gevo is partnered with clean energy firm Juhl Energy and Harrison Street Investors

Gevo Inc (NASDAQ:GEVO) and its partners held a ribbon-cutting ceremony this week to celebrate the completed construction of two wind turbines that will supply 5 megawatts of renewable energy to its subsidiary Agri-Energy’s production plant in Luverne, Minnesota. 

The electricity will be wired directly to Agri-Energy and is expected to be available beginning in April. The shift from fossil fuels to renewable wind power helps the company achieve a lower carbon intensity score under the Low Carbon Fuel Standard in California.

Gevo is partnered with clean energy firm Juhl Energy and Harrison Street Investors.

READ: Gevo signs agreement with Viva Energy to develop renewable hydrocarbons in Australia

“We are on a crusade to defossilize our business system, eliminating greenhouse gasses, and because of that, we expect to improve our margins,” Gevo CEO Patrick Gruber said in a statement. “The wind energy produced from these towers will help to take us off the fossil grid. It's a great first step, setting up our infrastructure for jet fuel and renewable gasoline.”

In conjunction with the wind project, Agri-Energy invested $1.5 million in the Series A preferred stock of Juhl’s asset subsidiary Juhl Clean Energy Assets. Juhl, Harrison Street and other JCEA investors funded the remainder of the approximate $8.75 million project cost, the company said. 

As a result, Juhl will own and operate the wind project, and Agri-Energy has agreed to purchase the electricity from the city of Luverne in addition to Renewable Energy Credits associated with the wind project from a Juhl affiliate.

“This project is a great example of the local community and business working together to use renewable energy to increase its competitiveness,” Juhl CEO John Mitola said. “We applaud Gevo’s leadership and expect to see increasing interest from the biofuel industry in projects such as wind and other clean energy projects that we can assist with to lower carbon intensity.” 

“We are thrilled to expand our renewable energy investment footprint,” Harrison Street Director & Head of Utilities Carolyn Arida said. “We look forward to our continued partnership with Juhl and Gevo, two companies that continue to innovate and lead with their decarbonization and sustainability efforts.”

In the statement, Gevo thanked others who helped make the project possible, including local landowners, the city of Luverne, Rock County, Faith Technologies, First Farmers and Merchants Bank, Missouri River Energy Services, and GE.

Gevo, based in Englewood, Colorado, is also working towards commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need to reduce greenhouse gas emissions with sustainable alternatives.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel