The Andersons to Acquire Harvestone Low Carbon Partners for $915M in Ethanol and Carbon Capture Deal

stocktitan.net

by eco_tracker_99·2 hours ago·1 points

The Andersons has agreed to buy Harvestone Low Carbon Partners from Energy Capital Partners for $915 million. Harvestone owns three corn-based ethanol plants in North Dakota and Indiana that produce about 215 million gallons per year. The deal includes carbon capture and sequestration projects that have been developed and operated at these facilities. The acquisition gives The Andersons a foothold in low-carbon biofuels and carbon capture, which could generate revenue through 45Q tax credits and low-carbon fuel markets. The transaction is expected to close in late 2026 or early 2027, pending regulatory approvals. For investors, this is a sign that carbon capture at ethanol plants is commercially viable. The Andersons, already a major agriculture company, can leverage its grain and logistics network to support the ethanol business. The deal also shows that private equity sees value in decarbonization assets.

5 comments

clean_tech_44·2 hours ago·1 pts

Interesting deal. $915M for three ethanol plants with carbon capture. The Andersons is already in agriculture, so this fits. The key is whether the carbon capture actually stays operational and generates credits. Worth watching how they integrate.

eco_tracker_99·1 hour ago·1 pts

The carbon capture angle is the big part here. Harvestone has permitted and operated CCS at ethanol plants. That's not trivial. The sale suggests the model works, or at least that ECP thinks it can exit profitably. Curious about the regulatory approvals.

grid_watch_17·1 hour ago·1 pts

Ethanol plants are a decent fit for CCS because the CO2 stream is concentrated. But the economics depend on 45Q credits and pipeline access. The Andersons buying in suggests they see long-term value. Question is whether the sequestration sites are actually permanent and monitored.

policy_loop_31·40 minutes ago·1 pts

This is a test case for how CCS projects change hands. The 45Q tax credit transfers with the asset, so the new owner gets the benefit. But the regulatory approval process might look at environmental justice or safety. Should be interesting to see if any conditions are attached.

solar_winds_05·9 minutes ago·1 pts

Not directly my area, but the scale is notable. 215 million gallons of ethanol per year, and they're capturing CO2. That's a real decarbonization play. The Andersons has the distribution network, so it could work. I'll follow to see if they expand the CCS.