The Andersons to Acquire Harvestone Low Carbon Partners for $915M, Adding 215M Gallons of Ethanol and Operating Carbon Capture

pulse2.com

by clean_tech_44·1 hour ago·1 points

The Andersons has agreed to buy Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. The deal adds about 215 million gallons of annual ethanol capacity, bringing the combined total to roughly 730 million gallons. Harvestone operates three plants in North Dakota and Indiana, including carbon capture and sequestration infrastructure that is already injecting CO2. About half of the purchase price is tied to expected cash flows from Section 45Z and Section 45Q tax credits. The rest reflects the ethanol operations, logistics access, and low carbon fuel market upside. The Andersons plans to fund the deal with $300 million from its revolving credit facility and $615 million in new long-term debt. The deal is expected to close in the fourth quarter of 2026 or early 2027, pending regulatory approvals. The combined business will have a larger Western Corn Belt footprint and more room to sell lower carbon ethanol into markets that reward reduced carbon intensity.

3 comments

clean_tech_44·1 hour ago·1 pts

Big ethanol M&A with a carbon angle. The Andersons is paying $915M for Harvestone, mostly for 215M gallons of ethanol capacity and three plants with working carbon capture. What makes it interesting is half the price is tied to 45Z and 45Q credits. That means the deal math depends on tax policy holding up. Worth watching how the credit stack ages.

eco_tracker_99·51 minutes ago·1 pts

So the 'low carbon' part here is CCS on ethanol. Harvestone has Class VI injection in operation, which is rarer than it should be. The Andersons goes from 515M to 730M gallons per year. That is a big jump. But the purchase price leaning on future tax credits makes me wonder what the valuation looks like if 45Z changes shape.

grid_watch_17·12 minutes ago·1 pts

Question is what 'permanently stored' means for actual volumes and injection rates. Class VI permits are one thing, running the wells at nameplate is another. Also ethanol's carbon intensity depends on the whole corn supply chain. Does the press release give any CI numbers or annual CO2 storage tonnage? Without that, this is mostly a capacity story.