Gevo, Inc. a leading renewable fuels and chemicals manufacturer, announced today 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.
“I want to thank the City of Luverne and the Commissioners and people of Rock County in making this project happen. Juhl Energy has been a great partner, and they know how to get things done. I appreciate their work not only in making the project a reality but for figuring out and arranging the funding too,” commented Patrick R. Gruber, Chief Executive Officer of Gevo. “Our plans call for us to invest in and build out our Agri-Energy site, producing renewable jet fuel and isooctane. Luverne has the potential to be a showcase for the world. Eliminating our carbon footprint from electricity is the right thing to do. We’ve taken a great step forward.”
“We see the great potential of Gevo’s work to reduce or even eliminate the fossil carbon footprint of transportation fuels. We’re excited that electricity from our wind project will directly lead to cleaner gallons of jet fuel and gasoline being produced by Gevo,” said Dan Juhl, Chairman of Juhl Energy. “We are pleased to work with the landowners, many officials from the City of Luverne, Missouri River Energy Services, Rock County, and Gevo. We look forward to these becoming long-term relationships.”