February 6, 2025 – Gevo, Inc. (NASDAQ: GEVO) recently announced that it has acquired Red Trail Energy, LLC for $210 million, subject to customary adjustments, including a working capital adjustment. The acquired assets, which are being renamed “Net-Zero North,” include the 65 million gallon per year ethanol production plant, carbon capture and sequestration (“CCS”) assets and pore space located in Richardton, North Dakota.

The transaction was funded with a combination of Gevo equity capital and a $105 million senior secured term loan facility from Orion Infrastructure Capital (“OIC”), a U.S.-based private investment firm. OIC has also indicated interest in providing up to an additional $100 million in debt for future growth projects at Net-Zero North that are mutually agreed upon. In addition, OIC is investing $5 million in equity at Net-Zero North, which is in addition to the equity contributed by Gevo.

Ocean Park acted as exclusive financial advisor and sole lead arranger to Gevo on the M&A and financing transactions.

“Ocean Park was honored to help Gevo achieve this important milestone,” said Mark Fisler, Ocean Park managing director. “This transaction was an excellent outcome for both parties, and we believe more such transactions could be on the horizon as the ethanol industry continues to consolidate.”

Although now owned by Gevo, the operations team and plant employees will remain intact.

“Ocean Park did an exemplary job and delivered tremendous value in a streamlined negotiation for this transformational acquisition,” said Dr. Chris Ryan, President and Chief Operating Officer of Gevo. “Ocean Park’s expertise in M&A transactions, ethanol industry knowledge and deep relationships were invaluable in achieving this successful outcome.”

“We are pleased to contribute to Gevo’s growth and continued success. CCS is an exciting new chapter in biofuels. We appreciate the opportunity to work with the Gevo team on this landmark transaction,” added Eric Ouyang, Ocean Park managing director.

About Gevo
Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including SAF, motor fuels, chemicals, and other materials that provide U.S.-made solutions. By investing in the backbone of rural America, Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States, turning by-products into clean, reliable energy. It also operates an ethanol plant with an adjacent CCS facility, further solidifying America’s leadership in energy innovation. Additionally, Gevo owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo’s market driven “pay for performance” approach regarding carbon and other sustainability attributes, helps ensure value is delivered to our local economy. Through its Verity subsidiary, Gevo provides transparency, accountability and efficiency in tracking, measuring and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market. For more information, see www.gevo.com.