Expansion of REX American Resources Corporation’s (REX) One Earth Energy ethanol plant in Gibson City, Ill., from 150 million gallons a year to 200 million gallons a year and the carbon capture and storage project being advanced at the same location are both on track for completion this year, the company said in its third-quarter 2025 earnings statement in December 2025.
Construction of the capture and compression portions of the One Earth carbon capture and sequestration (CCS) project at its Gibson City, Ill., location was designed to take advantage of 45Z and other federal tax credits and have been substantially completed. Currently, the Environmental Protection Agency (EPA) Class VI injection well permitting process is moving forward, with a final permitting decision for the sequestration portion of the project expected to be completed in June, according to the published EPA timeline.
“As our ethanol expansion and carbon capture projects advance, we are evaluating how best to leverage the 45Z tax credits to further enhance shareholder value,” said Zafar Rizvi, president and CEO of REX, which has headquarters in Dayton, Ohio.
REX executivechairman Stuart Rose said the company is “actively engaged with groups to assess our operations and assign a carbon intensity score to our production operations, which we expect to be below the threshold to begin earnings credits.”
Capital expenditures at the end of the third quarter related to the One Earth carbon capture and sequestration project at the Gibson City location and the expansion of ethanol production capacity there totaled $155.8 million, the company stated. The combined budget for completing the two projects ranges from $220 million to $230 million.
REX’s Multi-Plant Ethanol NetworkREX holds ownership positions in six ethanol production plants, which produce a total of approximately 730 million gallons a year. REX’s effective ownership of annual ethanol volumes is approximately 300 million gallons of those 730 million gallons.
REX is the majority owner of One Earth Energy LLC, soon to be producing ethanol at 200 million gallons a year (MMGY), and NuGen Energy LLC in Marion, S.D., which has an annual ethanol production capacity of 150 MMGY.
The company also holds an ownership stake in Big River Resources West Burlington LLC in West Burlington, Iowa, 115 MMGY; Big River Resources Galva LLC in Galva, Ill., 120 MMGY; Big River United Energy LLC in Dyersville, Iowa, 130 MMGY; and Big River Resources Boyceville LLC in Boyceville, Wis., 65 MMGY. The four Big River Resources plants have a combined total ethanol capacity of 430 million gallons of ethanol a year.
All six of the plants are located on major Class 1 rail lines, the company noted, which makes for easy shipment of its ethanol and the plants’ bioproducts, including distillers dried grains (DDGs).
REX’s fiscal third-quarter 2025 results principally reflect its interests in the six ethanol production facilities in which it has an ownership stake, the company said.
REX reported net sales and revenues of $175.6 million during the most recent third quarter, which was an increase of less than 1% from the $174.9 million that the company reported during the same period a year earlier. Gross profit declined $3.6 million from $39.7 million in the previous third quarter to $36.1 million in the third quarter of 2025. The company said the 9% decrease came from lower prices for both ethanol and DDGs.
Carbon Capture Project Nears CompletionThe carbon capture and sequestration project at One Earth Energy has been under development since 2019. According to the company website, construction of the carbon capture and compression facility is substantially complete. Facility testing remains to be completed.
In addition to waiting for approval for a Class VI well permit from the EPA, other approvals and permits are needed.
The carbon capture facility initially will sequester carbon produced by the One Earth Energy ethanol plant and, in later stages, extra well capacity could be used to accept third-party carbon for sequestration for a fee, the company said.
Galva Ethanol Facility Seeks Class VI Permit
In a separate development, Big River Resources LLC, in partnership with Lapis Carbon Solutions, filed a Class VI permit application for a new carbon capture and storage project adjacent to its Galva, Ill., ethanol facility in February.
The proposed project would permanently sequester more than 725,000 metric tons of carbon dioxide per year over 12 years. The filing follows completion of a stratigraphic test well that confirmed favorable geologic conditions for long-term underground storage.
The sequestered carbon dioxide would qualify for federal tax credits under Section 45Q of the Internal Revenue Code.
REX holds an ownership stake in the Galva facility through its interest in Big River Resources.
Big River Resources CEO Dave Zimmerman confirmed carbon capture capabilities would allow the company to extract additional value from ethanol production and strengthen its competitive position in low-carbon fuel markets.