Alto Ingredients, Inc. Enters CO2 Transportation and Sequestration Agreement with Vault 44.01
PEKIN, Ill., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Alto Ingredients, Inc. (NASDAQ:ALTO), a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients, announced it entered into a CO2 Transportation and Sequestration Agreement (TSA) with Vault 44.01 to provide transportation, injection and sequestration into the Mt. Simon sandstone formation in Illinois of CO2 produced at Alto Ingredients' Pekin campus.
"Continually striving to increase opportunities, improve profitability and lower carbon emissions, we partnered with Vault for the safe transportation and storage of CO2 from our Pekin campus," said Bryon McGregor, President and Chief Executive Officer of Alto Ingredients, Inc. "While we await EPA submission and approval, address financing and source equipment, the TSA marks a significant milestone on our path toward a more prosperous future. This project represents our commitment to building a sustainable future for our environment, our farmers and our entire community."
Producing approximately 250 million gallons of specialty alcohols and renewable fuels per year, the Pekin campus generates over 600,000 metric tons of CO2 annually as a by-product of the corn fermentation process. This project is intended to substantially reduce CO2 emissions and provide direct value to the surrounding communities while continuing to contribute employment and economic opportunities.
Scott Rennie, President and Chief Executive Officer of Vault 44.01, said, "We are excited to continue our efforts with Alto on this project to significantly reduce carbon dioxide emissions while benefiting Illinois farmers and the broader community. In developing this project, our top priorities are safety, transparency, and the long-term security of the carbon dioxide we manage. Alongside the Alto team, we look forward to working collaboratively with landowners, community members and regulators as we bring this project to fruition."
About Alto Ingredients, Inc.
Alto Ingredients, Inc. (NASDAQ:ALTO) is a leading producer and distributor of specialty alcohols, renewable fuels and essential ingredients. Leveraging the unique qualities of its facilities, the company serves customers in a wide range of consumer and commercial products in the Health, Home & Beauty; Food & Beverage; Industry & Agriculture; Essential Ingredients; and Renewable Fuels markets. For more information, please visit www.altoingredients.com.
About Vault 44.01
Vault, a portfolio company of Grey Rock Investment Partners, is a leading carbon capture and sequestration developer focused on the development, capitalization, and operation of carbon storage assets throughout North America. The company currently has seven carbon capture and sequestration projects under definitive agreements and active development in the U.S., with a combined capacity to permanently sequester approximately 2.5 million tons of CO2 annually. For more information, visit www.vault4401.com.
About Grey Rock Investment Partners
Grey Rock Investment Partners is a private equity firm with more than $1.3 billion in asset value across its private equity fund platform. The firm invests across the energy value chain with private equity funds focusing on investments in natural resources, carbon capture, industrial electrification, and power optimization. For more information visit https://www.grey-rock.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Statements and information contained in this communication that refer to or include Alto Ingredients' estimated or anticipated future results or other non-historical expressions of fact are forward-looking statements that reflect Alto Ingredients' current perspective of existing trends and information as of the date of the communication. Forward looking statements generally will be accompanied by words such as "anticipate," "believe," "plan," "could," "should," "estimate," "expect," "forecast," "outlook," "guidance," "intend," "may," "might," "will," "possible," "potential," "predict," "project," or other similar words, phrases or expressions. Such forward-looking statements include, but are not limited to, statements concerning Alto Ingredients' carbon capture and storage (CCS) project and its financing, costs, timing and effects; and Alto Ingredients' other plans, objectives, expectations and intentions. It is important to note that Alto Ingredients' plans, objectives, expectations and intentions are not predictions of actual performance. Actual results may differ materially from Alto Ingredients' current expectations depending upon a number of factors affecting Alto Ingredients' business and plans. These factors include, among others, Alto Ingredients' ability to obtain EPA and any other required approvals for its CCS project, and to timely and on satisfactory terms raise sufficient capital and source necessary equipment for the project; adverse economic and market conditions, including for renewable fuels, specialty alcohols and essential ingredients; export conditions and international demand for the company's products; fluctuations in the price of and demand for oil and gasoline; raw material costs, including production input costs, such as corn and natural gas; adverse impacts of inflation and supply chain constraints. These factors also include, among others, the inherent uncertainty associated with financial and other projections, including CCS, and the operation of new large-scale capital projects; the anticipated size of the markets and continued demand for Alto Ingredients' products; the impact of competitive products and pricing; the risks and uncertainties normally incident to the alcohol production, marketing and distribution industries; changes in generally accepted accounting principles; successful compliance with governmental regulations applicable to Alto Ingredients' facilities, products and/or businesses; changes in laws, regulations and governmental policies, including with respect to the Inflation Reduction Act's tax and other benefits Alto Ingredients expects to derive from CCS; the loss of key senior management or staff; and other events, factors and risks previously and from time to time disclosed in Alto Ingredients' filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in Alto Ingredients' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2024.
Media and Company IR Contact:
Michael Kramer, Alto Ingredients, Inc., 916-403-2755 [email protected]
IR Agency Contact:
Kirsten Chapman, Alliance Advisors Investor Relations, 415-433-3777 [email protected]
