The Andersons Acquires Harvestone for $915M, Boosting Ethanol and Carbon Capture Capacity

The Andersons has agreed to buy Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. The deal adds three ethanol plants in North Dakota and Indiana, bringing combined annual production to about 730 million gallons. Roughly half the purchase price is tied to expected cash flows from 45Z and 45Q tax credits, reflecting the value of Harvestone's carbon capture and sequestration infrastructure. Only one of Harvestone's three facilities, Blue Flint, currently operates commercial carbon capture. Dakota Spirit is building capture infrastructure, and IBEC is pursuing a Class VI permit. That means part of the low-carbon upside depends on construction and permitting, not just existing operations. The Andersons plans to finance the deal with $300 million from its revolving credit line and $615 million in new long-term debt, expecting the acquisition to be immediately accretive. The deal is scheduled to close in late 2026 or early 2027, pending regulatory approval. It shows how ethanol producers are using carbon capture to tap into tax incentives and low-carbon fuel premiums, but the varying stages of project development add execution risk that investors should watch.