Gevo Inc. (GEVO) Inks $22M Tax Credit Transfer Agreement

Gevo, Inc. (NASDAQ:GEVO) is one of the best green energy penny stocks to buy right now. On June 30, the company’s subsidiary, Gevo Intermediate Hold Co, LLC, entered into a Tax Credit Transfer Agreement with a bank.

The agreement is for the supply of $22 million worth of Clean Fuel Production Credits from ethanol production in 2025. The bank in question has also obtained additional rights, including the right of first offer for up to $20 million of extra 2025 credits and the right of first refusal on all 2026 credits.

The deal provides near-term funding for Gevo while preserving shareholder value without issuing equity or debt. The $22 million credit deal hinges on successful ethanol output by year-end, making it credit-positive. The $5 million in immediate proceeds should strengthen the company’s liquidity position, as the $22 million in contracted 2025 credits validate credit market demand.

Gevo, Inc. (NASDAQ:GEVO) is a renewable chemical and advanced biofuel company focused on developing and commercializing sustainable alternatives to petroleum-based products. As one of the best green energy companies, it utilizes renewable resources, such as carbohydrates from plants, to produce energy-dense liquid hydrocarbons for transportation fuels, including gasoline, jet fuel, and diesel.

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Disclosure: None. This article is originally published at Insider Monkey.