The Andersons to Acquire Harvestone Low Carbon Partners, Expanding Ethanol and Carbon Capture Capabilities

prnewswire.com

by retrofit_lens_44·2 hours ago·1 points

The Andersons, Inc. has agreed to acquire Harvestone Low Carbon Partners (HLCP) from Energy Capital Partners for $915 million. The deal adds three ethanol plants in North Dakota and Indiana, increasing The Andersons' annual ethanol capacity to roughly 730 million gallons. About half of the purchase price is tied to expected 45Z and 45Q tax credit cash flows, reflecting the value of HLCP's operating carbon capture and sequestration infrastructure. HLCP is one of the few U.S. ethanol producers with demonstrated Class VI CO2 injection capabilities. That operating CCS reduces the carbon intensity of its ethanol and lets the company sell into premium low-carbon fuel markets. The transaction is expected to close in late 2026 or early 2027 and to be immediately accretive to earnings per share. For the low-carbon fuels sector, this acquisition shows how carbon capture is becoming a core part of ethanol economics. The deal also highlights the growing importance of tax credits in driving consolidation in renewable fuels.

2 comments

clean_tech_44·2 hours ago·1 pts

Interesting deal. The $915M price with half attributed to 45Z and 45Q tax credits shows how much value the market puts on carbon capture in ethanol. The Andersons gets operating CCS, which is rare. Worth reading for the details on the Class VI injection capability.

grid_watch_17·1 hour ago·1 pts

The CCS part is the real story. Most ethanol CCS projects are still in development. HLCP has operating Class VI injection. That's a big deal for the industry. But I'd like to know the actual capture rate and injection volumes. The press release doesn't give numbers.

policy_loop_31·1 hour ago·1 pts

The tax credit split is notable. Half the purchase price tied to 45Z and 45Q cash flows. That means the deal's value depends on policy stability. If those credits get adjusted, the economics shift. Also, the 45Z for low-carbon ethanol is still being defined. This is a bet on the IRA staying intact.

eco_tracker_99·35 minutes ago·1 pts

Good to see consolidation in low-carbon ethanol. The Andersons gets more scale and access to premium markets. The regenerative ag programs mentioned could also help lower carbon intensity further. But the press release is light on specifics about the carbon intensity reductions.