Gevo, a renewable fuels and chemicals manufacturer, has secured the supply of 5 MW of fully renewable electricity for its Agri-Energy production plant located in Luverne, Minnesota, from an affiliate of Juhl Energy. The electricity generated from wind will be wired directly to Agri-Energy, enabling it to claim the renewable benefit of lower carbon intensity score under the Low Carbon Fuel Standard.
As part of the project financing, Gevo invested $1.5 million in the preferred stock of Juhl Clean Energy Assets out of a total funding round of $9 million. JCEA is the owner and operator of the wind project and the funding round will enable the acquisition and construction of the wind towers needed to supply Agri-Energy. The wind electricity is expected to be on-line and available to Gevo's Agri-Energy no later than mid-year 2020. Gevo's Agri-Energy has agreed to purchase the electricity from the City of Luverne, and the Renewable Energy Credits from an affiliate of JCEA. Gevo expects no material cost increase in its electricity pricing.
This wind project is the first of several steps expected to lead to improved profitability for Gevo by reducing the carbon footprint of its fuel products enabling the company to capture value from the carbon intensity reduction, or reduced carbon footprint, of its products.
"We see the great potential of Gevo's work to reduce or even eliminate the fossil carbon footprint of transportation fuels. We’re excited that electricity from our wind project will directly lead to cleaner gallons of jet fuel and gasoline being produced by Gevo," said Dan Juhl, Chairman of Juhl Energy.