Alto Ingredients Inc. (NASDAQ: ALTO) completed the sale of its 2025 Section 45Z Clean Fuel Production Tax Credits to a third-party corporate buyer for approximately $8.9 million in cash proceeds before fees and transaction costs, according to a company statement.

The credits were generated from low-carbon ethanol production at the company's Pekin Dry Mill and Columbia facilities during 2025. The sale price aligned with the company's previous expectations.

"We are pleased to execute on our strategy to monetize our low-carbon fuel tax credits under Section 45Z," said Rob Olander, Alto Ingredients' Chief Financial Officer. "The ability to monetize these credits provides a meaningful source of cash to support our initiatives and increase shareholder value."

The company stated it expects to continue benefiting from Section 45Z Clean Fuel Production Tax Credits for 2026 and future years. Alto Ingredients produces and distributes specialty alcohols, renewable fuels and essential ingredients for various markets including health and beauty, food and beverage, and agriculture sectors.