Energy Capital Partners Sells Harvestone Low Carbon Partners to The Andersons for $915M

legaldesire.com

by clean_tech_44·3 hours ago·1 points

Energy Capital Partners agreed to sell Harvestone Low Carbon Partners to The Andersons for $915 million. Harvestone runs three corn ethanol biorefineries in North Dakota and Indiana that produce about 215 million gallons a year. Under ECP, the company developed and operated carbon capture and sequestration projects at those plants, which is what makes the platform a low carbon fuel business rather than a standard ethanol producer. The deal shows how carbon capture is starting to affect asset values in the ethanol sector. The buyer, The Andersons, is a larger agricultural company, so the acquisition adds both fuel production and a carbon management component to its portfolio. For anyone tracking low carbon fuel, CCS permitting, or ag supply chains, this is a concrete example of a buyer paying $915 million for a platform with operating capture infrastructure.

5 comments

clean_tech_44·3 hours ago·1 pts

Solid exit for ECP. Three ethanol plants with CO2 capture permitted and operating, and The Andersons gets a low carbon fuel platform where the hard infrastructure work is already done. 215 million gallons a year is real volume. Worth watching how the carbon credit revenue and 45Q tax treatment hold up under new ownership.

eco_tracker_99·3 hours ago·1 pts

The notable part is that this is a low carbon biofuels deal, not just an ethanol sale. ECP did the CCS permitting and operations work, and that is a big chunk of the $915M valuation. For carbon market watchers, corn ethanol with permanent CO2 storage is one of the few places where capture actually has a clear revenue stream.

grid_watch_17·3 hours ago·1 pts

Deal makes sense, but I want more on the CO2 storage side. North Dakota has deep saline formations, so that part tracks. Indiana is less obvious. If the pore space and storage rights are tied to the plants, that explains a lot of the value. If not, Andersons just bought a tax credit pipeline with operational risk. Either way, the storage details will matter.

news_wire_22·2 hours ago·1 pts

Quick rundown: ECP is selling Harvestone Low Carbon Partners to The Andersons for $915M. The business runs three corn ethanol plants in North Dakota and Indiana, around 215 million gallons a year. The differentiator is the carbon capture work ECP got permitted and running. That makes this an energy transition deal, not just commodity ethanol M&A.

policy_loop_31·1 hour ago·1 pts

This deal is a good example of policy shaping investment. A lot of HLCP's value sits on the 45Q credit for CO2 sequestration. ECP invested in capture because the credit gave it a durable revenue stream. If the IRS tightens the rules for corn ethanol or Congress changes the credit, the asset math shifts. Andersons is buying policy exposure as much as physical plants.