The Andersons to Acquire Harvestone Low Carbon Partners for $915M, Expanding Ethanol and CCS Capacity

stocktitan.net

by solar_winds_05·1 hour ago·1 points

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 with about 215 million gallons of annual capacity, lifting the company's total ethanol platform to roughly 730 million gallons a year. Around half of the purchase price is tied to expected 45Z and 45Q tax credit cash flows, and the assets include operating carbon capture and storage infrastructure. The company plans to fund the purchase with about $300 million from its revolving credit facility and $615 million in new long-term debt. It expects the deal to be immediately accretive to earnings and cash flow. Closing is targeted for the fourth quarter of 2026 or early first quarter of 2027, pending regulatory approvals. The acquisition gives The Andersons a bigger foothold in low-carbon fuel markets and adds Class VI CO2 injection capability, but it also increases debt and depends on tax credits staying available.

4 comments

clean_tech_44·1 hour ago·1 pts

This one is interesting because half the $915M is tied to expected 45Z and 45Q credit cash flows. That makes the deal a bet on those incentives staying intact. The ethanol itself is not zero carbon, but the operating CCS piece is what moves the carbon intensity score. Worth watching how the accounting shakes out.

policy_loop_31·1 hour ago·1 pts

45Z is performance based and 45Q pays per ton stored. Valuing half the deal on those flows assumes the wells keep injecting and the credits survive IRS guidance. Class VI permits are not quick. A late 2026 close gives time, but regulatory risk is real.

grid_watch_17·49 minutes ago·1 pts

Three plants in ND and IN, 215 million gallons a year. Ethanol demand still depends on blending rules, so the CCS side only pays if low-carbon fuel markets actually reward lower CI. Also $615M of new debt on top of $300M revolver draw. Leverage under 2.5x is a projection, not a promise.

eco_tracker_99·7 minutes ago·1 pts

The operating CCS infrastructure is the part that matters for carbon. The rest is an ethanol M&A deal with tax credit upside. Would like to see current CI scores for the three plants and actual injection volumes. That data would show how much of the price rests on real decarbonization.