A strategic acquisition is transforming a waste byproduct into a high-margin profit center for Alto Ingredients
With the mission to provide ingredients that make everyday life better, Alto Ingredients (Alto) manufactures high-quality alcohols, protein and specialty feed, food products, low-carbon renewable fuel, and carbon dioxide. These are incorporated into a myriad of products by its customers and can be found in diverse applications ranging from cleaning and pharmaceuticals to agriculture and industry.
Alto’s products are manufactured at its distillery, corn wet mill, specialty yeast production facility, and renewable fuel plant at its Pekin, Illinois campus, along with two renewable fuels plants in Idaho and Oregon.
New Energy Today catches up with President and CEO Bryon McGregor, who shares some more detailed insights into the company: “Alto has transformed from a pure-play biofuels producer founded in 2003 into a diversified ‘essential ingredients’ business that turns corn into high-quality alcohol and co-products used in everyday items,” he explains. “As one of the larger US producers of specialty alcohols and a major ethanol manufacturer, we serve a broad customer base across health, home and beauty, food and beverage, industry and agriculture, and the renewable fuels markets. Our mission is to deliver the highest quality, sustainable ingredients from renewable resources that make everyday life better. We emphasize strong customer partnerships, product quality, and reliable service in every segment.
“In health, home, and beauty, we are a trusted source of high-purity, accredited alcohol critical for sanitizers, cosmetics, and pharma products, with a focus on quality and regulatory compliance that gives consumer product companies confidence in their ingredients,” he continues. “In food and beverage, we provide everything from the alcohol that ends up in top-shelf spirits and pantry staples like vinegar to the carbon dioxide that puts the fizz in soft drinks, all under strict food safety standards. In industry and agriculture, we act as both a sustainable chemicals supplier – offering bio-based alcohol and gases – and as an agricultural inputs provider, significantly contributing to animal nutrition markets with their diverse offering of protein products. Our integration into the agricultural sector (buying corn and selling feed) underlines our commitment to supporting farm economies and resource efficiency. In renewable fuels, we are at the heart of the biofuel supply chain, furnishing ethanol that enables cleaner gasoline and feedstocks for other green fuels like renewable diesel. We are a reliable, forward-thinking partner to fuel companies aiming to meet emissions goals, backed by our improvements in carbon intensity and distribution infrastructure.”
Kodiak Carbonic LLC
Continuing the diversification that transformed the company from a pure-play fuel ethanol producer to a major player across multiple industries and sectors, Alto recently acquired Kodiak Carbonic LLC. Bryon clarifies the motivation behind the move and highlights the benefits it has brought the company: “Our Oregon plant produces over 100,000 tons of carbon dioxide annually as a fermentation byproduct of ethanol production. Prior to this acquisition, the carbon dioxide was captured and sold by Kodiak Carbonic (under contract with an industrial gas distributor), meaning we missed out on that incremental value. By acquiring Kodiak, we were able to vertically integrate the carbon dioxide capture process and convert waste gas into a profit center. Acquiring Kodiak expands our premium ingredients portfolio, adding beverage-grade carbon dioxide alongside alcohols and feed co-products. Carbon dioxide is used in carbonated beverages, food processing (flash freezing, modified atmosphere packaging), and industrial cooling, opening new markets for us in the food and beverage and industrial sectors.”
The acquisition reflects the broader strategic approach to efficiency that encapsulates several other actions, as Bryon outlines: “In addition to the Kodiak acquisition, we implemented significant cost-saving measures, which we expect to yield approximately $8 million in annual savings. These actions are part of a broader restructuring to improve financial stability and operational efficiency. It is also worth noting that Alto’s export program is a strategic engine for profitability and market leadership. By focusing on certified, high-value products, aligning with regulatory incentives, and investing in operational excellence, we are well-positioned to expand our international presence and capture premium opportunities in the evolving global marketplace.”
Environmental sustainability underpins all the company’s operations. Alto’s approach to sustainability is comprehensive and strategic, combining ambitious carbon reduction targets, innovative product development, operational efficiency, responsible sourcing, and transparent stakeholder engagement. Its investments in carbon capture, usage, and storage (CCUS), renewable fuels, and supply chain traceability position Alto as a leader in fueling a low-carbon economy, while also supporting profitability and long-term value creation.
With Alto approaching its 25th anniversary, Bryon takes a moment to reflect on the factors that have contributed to its longevity and continued growth: “While Alto, as a public company, will be celebrating this noteworthy milestone, it is worth mentioning that two of our facilities have served their respective communities for more than 120 years. Generations of dedicated employees have worked to enhance efficiency, embrace innovation, and adapt our operations to address the evolving requirements of our customers, business partners, and industries.”
To continue Alto’s trajectory of profitable growth, the company has focused priorities for the coming year and beyond: “For 2025 and continuing into 2026, our attention is centered on disciplined cost management, capturing federal tax incentives, optimizing the asset portfolio, advancing sustainability initiatives, maintaining operational excellence, and ensuring clear communication with stakeholders. These efforts are designed to drive profitability, support long-term growth, and reinforce Alto’s leadership in the markets we serve,” notes Bryon.
“In the longer term, we remain focused on improving all aspects of our business. Although we cannot control the ethanol commodity crush margin, better operations will enable us to capitalize on good margin environments and to stabilize performance when margins are depressed. Our guiding philosophy is to increase asset values by prioritizing strategies under our direct control. We aim for both achieving short-term gains and positioning Alto for future growth. These aspirations are grounded in actionable plans, measurable objectives, and a commitment to maximizing long-term value for all stakeholders.”