Gevo, Inc. (NASDAQ: GEVO) announced it has sold substantially all of its Section 45Z tax credits generated in 2026 by its ethanol and renewable natural gas facilities, totaling $70 million worth of credits, according to a press release.

The company has received over $30 million in cash from these sales through September 30, with the remaining amount expected within the next six months. The credits were generated through the production and sale of low-carbon transportation fuels and were transferred under the credit's transferability provisions.

On September 30, Gevo sold $50 million worth of credits to an unnamed publicly traded, non-financial company. A prior transaction saw $20 million in credits sold to Quill Financial, Inc., the parent company of Quill Bank, a Utah-based community bank.

"We have successfully sold our expected 2026 45Z tax credit position while broadening participation beyond financial institutions to also include strategic corporate buyers," said Gevo Chief Executive Officer Paul Bloom.

Gevo said it expects to generate an additional $7 to $10 million in Section 45Z tax credits in 2027, citing anticipated debottlenecking work at its North Dakota facility. The company said the work is expected to increase production capacity and associated carbon capture by 10% to 15% and is on track to be completed by the end of 2026.