Alto Ingredients, Inc., a Delaware-based company specializing in industrial organic chemicals, has entered into a significant agreement with Vault Dragon CCS Holdings LP for the transportation and sequestration of carbon dioxide (CO2). This deal, finalized on November 5, 2024, involves Alto Ingredients' subsidiary, Alto Pekin, LLC, and is aimed at enabling the company to secure tax credits and other benefits.
According to the CO2 Transportation and Sequestration Agreement, Vault Dragon will construct, own, operate, and maintain the necessary facilities to transport and permanently sequester a composite of CO2 and other components. These facilities are designed to meet the requirements that will allow Alto Pekin to qualify for specific tax incentives.
The move comes as part of Alto Ingredients' efforts to manage its environmental footprint and potentially leverage financial advantages associated with CO2 mitigation strategies. The CO2 Agreement is anticipated to contribute to the company's sustainability goals while offering a fiscal edge through governmental tax credits.
The terms of the agreement detail that Vault Dragon is responsible for the infrastructure required for the CO2 sequestration process. This includes the construction and maintenance of both the transportation facilities for the CO2 and the injection and sequestration sites.
This partnership underscores the growing trend of industrial companies investing in environmentally conscious operations. By capitalizing on such initiatives, Alto Ingredients not only demonstrates corporate responsibility but also positions itself to benefit from the evolving regulatory landscape favoring sustainable practices.
The CO2 Agreement is a material definitive agreement and is significant to Alto Ingredients' operations. Further details of the agreement were not disclosed but are available upon request to the Securities and Exchange Commission as part of the company's 8-K filing.
Alto Ingredients, formerly known as Pacific Ethanol (NASDAQ:ALTO), Inc., has its principal executive offices in Pekin, Illinois. The company's common stock is traded on the Nasdaq Capital Market under the ticker symbol ALTO. This latest development is based on information from a press release statement.
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