Cadillac begins retail production of LYRIQ EV
Audi Environmental Foundation, TUB developing microplastics filter for tire wear particles

Delta Air Lines signs 75 MGPY for 7 years SAF deal with Gevo; oneworld Alliance members plan to buy 200 MGPY

Gevo has signed a “take-or-pay” agreement with Delta Air Lines, Inc. to supply 75 million gallons of sustainable aviation fuel (SAF) per year for seven years. Based on current assumptions, including those around future pricing of commodities and the future values of certain environmental benefits, Gevo estimates that the agreement should generate approximately $2.8 billion of revenue, inclusive of the value from environmental benefits, for Gevo over the seven-year term of the agreement.

The agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year and bolsters Delta’s commitment to incorporating SAF into its operations.

SAF is a critically important lever we have available today to help our industry reduce the lifecycle carbon emissions from aviation fuel. That’s why we are working to develop the market and a broader understanding of the effectiveness of SAF, which can reduce lifecycle emissions up to 80 percent when used in pure form compared to fossil jet fuels.

—Kelly Nodzak, Delta’s Director of Global Jet Fuel Procurement

Gevo has developed two alcohol-to-jet (ATJ) pathways that can utilize various low-carbon feedstocks grown using sustainable agriculture. These feedstocks can then be converted, in some cases, to high-value nutritional products and energy-dense liquid hydrocarbons, including SAF. Gevo’s production processes will incorporate renewable energy, including wind turbines, biogas, and combined heat and power systems (CHP) to increase efficiency and reduce carbon intensity to net-zero levels, which the customer can then pass on through the fuel.

The agreement is subject to certain conditions precedent, including Gevo developing, financing and constructing one or more production facilities to produce the SAF contemplated by the agreement.

oneworld Alliance. oneworld Alliance, a network of world-class airlines, and Gevo announced that certain oneworld members plan to purchase up to 200 million gallons per year of SAF from Gevo. The delivery of the SAF is expected to commence in 2027, for a five-year term.

oneworld members Alaska Airlines, American Airlines, British Airways, Finnair, Japan Airlines and Qatar Airways expect to utilize Gevo’s SAF for their operations in California including San Diego, San Francisco, San Jose and Los Angeles International Airports.

One member has already executed a binding fuel sales agreement whereby Gevo expects to produce and sell 30 million gallons per year of SAF in support of the oneworld Alliance SAF purchase goal. Based on current assumptions, including those around future pricing of commodities and the future values of certain environmental benefits, Gevo estimates that the fuel sales agreement should generate approximately $800 million of revenue, inclusive of the value from environmental benefits, across the life of the contract.

Gevo’s SAF is expected to be produced using field corn products that will then be processed to create ethanol that will then be converted into SAF. Gevo expects to produce the SAF at one or more facilities under development in the Midwest.

Comments

The comments to this entry are closed.