The Andersons to buy Harvestone Low Carbon Partners for $915M
In Ohio, The Andersons, Inc. has entered into a definitive agreement to acquire Harvestone Low Carbon Partners (HLCP), an industry leader in low-carbon ethanol that owns and operates three ethanol production facilities in North Dakota and Indiana from Energy Capital Partners (ECP), for $915 million. Approximately half of the purchase price is attributed to expected 45Z and 45Q tax credit cash flows, with the remainder to the underlying base ethanol operations and additional low-carbon opportunities. Upon closing, The Andersons’ (the Company) combined ethanol production platform will have approximately 730 million gallons of annual capacity. The purchase price includes a normalized level of working capital. The transaction is subject to customary adjustments and closing conditions.
HLCP has a demonstrated track record of innovation in renewable fuels, including the development and commercialization of vertically integrated carbon capture and sequestration (CCS) capabilities. Its facilities are strategically positioned to serve low-carbon fuel markets, supported by established customer relationships. Its operating CCS infrastructure reduces the carbon intensity of ethanol production and enables the business to capture value through low-carbon fuel markets and applicable tax incentives, with additional benefits anticipated from projects under development.
Category: Fuels
