Why It Matters
Colorado-based energy company Gevo is moving forward with a major expansion of its ethanol production operations in North Dakota, a development that carries significant implications for the state’s agriculture sector, energy economy, and long-term prospects for sustainable aviation fuel production. The Richardton facility, located in southwest North Dakota, is already a landmark site in low-carbon fuel development, and the planned expansion would roughly double its output, creating increased demand for locally grown corn and reinforcing North Dakota’s position as a hub for renewable fuel innovation.
What Happened
Gevo announced this week that it will add a second ethanol production facility at its Richardton, North Dakota, site — the former Red Trail Energy plant the company acquired in 2024. The new facility would be capable of producing up to 75 million gallons per year of low-carbon ethanol.
The announcement follows an earlier expansion plan revealed earlier in 2026, in which Gevo said it would increase output at the existing facility from 67 million gallons per year to 75 million gallons per year. Together, the two projects would bring the site’s total production capacity to approximately 150 million gallons per year.
Paul Bloom, president of Gevo, cited North Dakota’s business environment as a key factor in selecting the state for expansion. “North Dakota, being a pro-agriculture and pro-energy state, is at the top of our list,” Bloom said in a news release. He also pointed to the site’s existing carbon capture and sequestration infrastructure as a core advantage.
Red Trail Energy, the plant’s previous owner, was the first ethanol facility in the United States to capture carbon directly from the fermentation process used to convert corn into ethanol. That captured carbon is stored underground near the Richardton site. Gevo acquired the plant in part because this capability allows the company to qualify for federal tax credits tied to low-carbon fuel production.
Bloom described the expansion as “building the foundation” for sustainable aviation fuel production at the site. Sustainable aviation fuel commands higher market prices than conventional ethanol and is increasingly sought by airlines and governments looking to reduce aviation-sector emissions.
Notably, Gevo has shelved a previously announced plan to build a sustainable jet fuel plant in South Dakota, redirecting that focus to the North Dakota facility instead.
By the Numbers
- 75 million gallons per year — Capacity of the new second ethanol facility planned for the Richardton site
- 67 to 75 million gallons per year — Planned upgrade to the existing facility announced earlier in 2026
- ~150 million gallons per year — Combined estimated production capacity following full expansion
- ~52 million bushels of corn — Estimated annual corn consumption at the fully expanded facility, based on an industry-standard yield of 2.9 gallons of ethanol per 56-pound bushel
- 711 million bushels — North Dakota’s total corn production last year, according to U.S. Department of Agriculture data
Zoom Out
The Richardton expansion comes as federal policy is shifting in ways that could further boost ethanol demand nationally. The U.S. Environmental Protection Agency recently announced it will allow gasoline blended with up to 15% ethanol — known as E15 — to be sold this summer, lifting a restriction that has historically kept E15 off the market during warmer months. The EPA has also called for an all-time high volume of biofuels to be blended into the nation’s gasoline and diesel supply.
These regulatory changes represent a favorable backdrop for ethanol producers. Across the country, the renewable fuels industry has been watching sustainable aviation fuel development closely, as major airlines and international aviation bodies have committed to reducing carbon output, creating a growing premium market for lower-emission jet fuel alternatives. Several states with strong agricultural bases, including Iowa, Nebraska, and South Dakota, are competing for investment in this emerging sector.
What’s Next
Gevo did not provide a specific cost estimate or a construction timeline in its announcement, leaving the pace of the expansion unclear. The company is expected to release additional project details as planning progresses. Stakeholders in North Dakota’s agriculture and energy sectors will be watching closely, as the expansion could affect corn markets, local employment, and infrastructure in the southwest part of the state. The buildout of sustainable aviation fuel production capacity at the site remains a stated longer-term goal, though no formal announcement on that phase has been made.