Green Plains completes $190 million sale of Tennessee ethanol plant

Published 26/09/2025, 13:06
Green Plains completes $190 million sale of Tennessee ethanol plant

OMAHA - Green Plains Inc. (NASDAQ:GPRE), a biorefining company with a market capitalization of $603 million, has completed the sale of its ethanol plant in Rives, Tennessee, to POET Biorefining - Obion, LLC for $190 million in cash, the company announced Friday.

The transaction, which was previously announced, includes an estimated $20 million in working capital that will be finalized after closing.

According to the company’s statement, the sale will strengthen Green Plains’ balance sheet by eliminating its junior mezzanine debt and enhancing liquidity. The transaction provides the company with greater financial flexibility as it pursues its strategy to optimize its portfolio and advance carbon reduction initiatives.

Green Plains, a biorefining company focused on renewable fuels and sustainable ingredients, is currently deploying carbon capture and storage solutions, with three of its facilities scheduled to begin carbon capture operations later this year.

The company transforms annually renewable crops into low-carbon energy and sustainable feedstocks through its agricultural, biological, and fermentation expertise.

The announcement comes as Green Plains continues its efforts to reduce the carbon intensity of its products while delivering value to stakeholders, according to the press release statement.

In other recent news, Green Plains Inc. has announced a significant agreement with Freepoint Commodities to sell Clean Fuel Production Credits, known as 45Z credits, under the Inflation Reduction Act. These credits, expected to be generated in 2025, will initially come from Green Plains’ three Nebraska facilities, with plans to include credits from three additional facilities. The company anticipates a $40-50 million EBITDA boost from these credits, as noted by UBS. In another development, Green Plains has decided to sell its Tennessee ethanol plant to POET for $190 million in cash. This sale aims to reduce debt and enhance liquidity, with the transaction expected to close in the third quarter of 2025.

Furthermore, Oppenheimer has upgraded Green Plains’ stock rating from Perform to Outperform, citing the company’s recent debt reduction and improved liquidity following the sale of its Obion plant. The upgrade includes a price target of $14.00. These recent developments highlight Green Plains’ strategic moves to strengthen its financial position and capitalize on clean energy initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.