Gevo Inc. has contracted to sell substantially all of its anticipated 2026 Section 45Z clean fuel production tax credits for a total of $70 million. The sales include a $50 million deal with an undisclosed publicly traded company and a previous $20 million sale to Quill Financial Inc.
Gevo had received more than $30 million in cash as of September 30. It expects to receive the remainder over the next six months.
The sales allow Gevo to monetize credits generated by its low-carbon ethanol and renewable natural gas production, strengthening its balance sheet and providing financial flexibility without diluting shareholders.
Gevo forecasts it will generate more than $77 million worth of credits in 2027. The projected increase reflects a planned expansion at its North Dakota facility, which is expected to be completed by the end of 2026.