September 18 (Renewables Now) - US biofuels company Gevo Inc (NASDAQ:GEVO) will use electricity from wind turbines at its Agri-Energy plant in Luverne, Minnesota, as part of a plan to decarbonise its production.
The low-carbon fuel company said on Monday it has agreed to buy the output from 5 MW of wind capacity from a project owned by Juhl Clean Energy Assets (JCEA), an affiliate of renewables firm Juhl Energy (OTCMKTS:JUHL). The electricity will be bought from the City of Luverne, while Gevo will get the related renewable energy credits (RECs) from an affiliate of JCEA.
The particular wind park is expected to be switched on and start supplies to Gevo's Agri-Energy plant no later than the middle of 2020. The biofuels firm said it does not anticipate any material cost increases in its electricity pricing.
Apart from buying power from the wind park, Gevo has also taken part in financing the project by investing USD 1.5 million (EUR 1.4m) in JCEA preferred stock. The investment was made as part of a USD-9-million funding round that will help JCEA buy and install the wind towers for the project.
This wind project is one of several initiative expected to lead to improved profitability for Gevo. The company explained that by cutting the carbon footprint of its fuel products it would capture value from the carbon intensity reduction.
(USD 1.0 = EUR 0.905)