The Andersons to purchase two North Dakota ethanol plants with Harvestone acquisition

Mikkel Pates / Agweek file photo By Michael Johnson Today at 5:05 PM Listen Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? A $915 million deal involves two North Dakota biorefineries and one Indiana plant being acquired by an Ohio commodity merchandiser. The Andersons Inc. signed a definitive agreement to acquire Harvestone Low Carbon Partners from Energy Capital Partners. Harvestone owns and operates two production facilities in North Dakota, and a third facility in Rensselaer, Indiana. Those include Blue Flint Ethanol in Underwood and Dakota Spirit AgEnergy near Jamestown and Rensselaer, Indiana’s Iroquois Bio-Energy Co. ADVERTISEMENT According to a Nov. 4 statement from The Andersons, approximately half of the purchase price is attributed to expected 45Z and 45Q tax credit cash flows, with the remainder allocated to base ethanol operations and additional low-carbon opportunities. The Andersons’ combined ethanol production platform will be about 730 million gallons of annual capacity with this acquisition, increasing access to premium low-carbon fuel markets. Read more Farmers Union report links high grocery prices to corporate consolidation 1d ago Company that owns Fargo manufacturing plant plans to sell off construction equipment business 2d ago The realities of robotics in farming 3d ago "Our Renewables strategy is centered on expanding our low-carbon production platform through disciplined investments and capturing the growing value of renewable fuels," said Bill Krueger, President and Chief Executive Officer of The Andersons in a news release. "We have been evaluating ethanol plant acquisition opportunities for several years, and HLCP is exactly what we have been looking for.” "We believe The Andersons is the right home for HLCP," said Jeff Zueger, CEO of HLCP, said in the release. "Our organizations share a strong commitment to our employees, our communities and the customers we serve, and we see a strong cultural fit between our teams. We're excited about what we can accomplish together." The company expects to close the transaction in the fourth quarter of 2026 or the first quarter of 2027. ADVERTISEMENT The Andersons' purchase of Harvestone Low Carbon Partners will have a significant impact on North Dakota, according to David Ripplinger, North Dakota State University Extension economist, who shared about the purchase during a market outlook webinar on Thursday. “What's unique about them, and this is very much a carbon play in terms of the revenue that it's going to generate,” Ripplinger said. He said the fact that this company has been around for many years is a sign of stability, which is a good sign for these North Dakota plants. Blue Flint Ethanol, which injects into the Broom Creek formation, is able to store CO2. Dakota Spirit does not have that access, but they are installing carbon capture technology that will allow them to transport liquefied CO2 to the formation used by Blue Flint. “One of the things that is interesting in that is right now we are approaching the point where Gevo, Blue Flint, and the Dakota Spirit Ag Energy have very small carbon intensities, near zero, which you know there's clearly in the money for generating 45Z, but they don't have necessarily as much room to allow farmers to have tax credits for that,” Ripplinger said. “It'll be interesting to see how that plays out in coming months.” NDSU economist Frayne Olson also weighed in that the move was an impressive one for North Dakota. He added that it’s not too surprising to see since the incentives are there right now for those looking to reduce their carbon footprint. ADVERTISEMENT “So, I think my initial response is, I think it'll be good for the region,” Olson said. “Again, we'll have to wait to see how it all plays out.” Comments Share Share this article News Reporting News Reporting Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The Trust Project What is this? Tags Tags AGRICULTURE NORTH DAKOTA ETHANOL AGRIBUSINESS CORN By Michael Johnson Michael Johnson is the news editor for Agweek. He lives in rural Deer Creek, Minn., where he is starting to homestead with his two children and wife. You can reach Michael at [email protected] or 218-640-2312. Instagram Facebook Listen to this article Conversation ADVERTISEMENT What To Read Next Agribusiness Federal grant to nearly double barge loading speed at Red Wing Grain 12h ago · By Noah Fish Agribusiness Minnesota ag needs growth, not just stability 3d ago · By Noah Fish Agribusiness GLP-1 users eat less but spend more on groceries, panel says Nov 4 · By Noah Fish ADVERTISEMENT Get Local