Highwater Ethanol is a single-plant fuel-grade ethanol producer located near Lamberton, Minnesota, with an annual production capacity of approximately 70.2 million gallons. The company uses a dry milling process to convert corn into ethanol, which is then sold to wholesale gasoline marketers and blenders who blend it into gasoline. Ethanol accounts for roughly 77% of revenue, with distillers grains (a protein-rich animal feed supplement) and corn oil (used as a biodiesel feedstock) making up the remainder. The business model is a commodity processing spread: Highwater Ethanol buys corn at market prices, converts it into ethanol and co-products, and profits on the margin between input costs and output prices — neither of which it controls. Corn is the dominant input cost, requiring roughly 23.5 million bushels per year. Almost all sales are domestic, and nearly all products are sold through RPMG, a third-party marketing firm in which Highwater Ethanol holds an ownership stake. As a single-plant operator with no ability to idle capacity during low-margin periods, the company has limited operational flexibility. Highwater Ethanol also expects to benefit from the Section 45Z Clean Fuel Production Tax Credit under the Inflation Reduction Act, which could provide up to $1.00 per gallon of ethanol produced, subject to meeting regulatory requirements.