Benjamin Klieve's questions to Andersons Inc (ANDE) leadership • Q4 2024
Question
Benjamin Klieve from Lake Street Capital Markets inquired about the strategy for carbon intensity reduction investments in Renewables, the expected synergies from the N&I and Trade group consolidation, and the factors behind the strong ethanol performance despite margin compression.
Answer
President and CEO William Krueger explained that while awaiting full regulatory clarity on 45Z, the company is preparing for carbon intensity reduction investments, confident in the existing 45Q credit. He noted the N&I and Trade consolidation aims to create an integrated farmer-facing solution for climate-smart ag and to realize internal efficiencies. Krueger attributed the strong Q4 Renewables results to the successful execution of their integrated business model, encompassing origination, co-product sales, and marketing, which mitigates the impact of lower board crush margins.