10:15 AM EDT, 05/28/2025 (MT Newswires) -- Gevo ( GEVO ) said Wednesday it reached an agreement to sell its Agri-Energy unit to A.E. Innovation for $7 million.

The company said the deal includes the unit's ethanol facility located in Luverne, Minnesota and part of the surrounding land.

Gevo ( GEVO ) said it will receive $2 million at closing and an additional $5 million later under the purchase agreement. The sale, which is slated to close by year-end, provides Gevo ( GEVO ) with $3 million of annual savings in current idling costs for the facility, the company said.

Gevo ( GEVO ) also said it will retain equipment and land tied to isobutanol production, which could support future output of up to 1 million gallons annually.

A.E. Innovation, a Minnesota-based agricultural group, plans to restart ethanol operations at the plant, which has been idle since 2022, and use the site for technology development, according to Gevo ( GEVO ).

Shares of the company were down 1.3% in recent Wednesday trading.

Price: 1.13, Change: -0.01, Percent Change: -1.32