Gevo Enters into a Fuel Sales Agreement with Scandinavian Airline System for Sustainable Aviation Fuel
November 14 2019 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO), a leading renewable fuels and chemicals
manufacturer, announced today it has signed a Fuel Sales Agreement
with Scandinavian Airline System (“SAS”) to produce and supply
sustainable aviation fuel (“SAF”) for use and distribution in low
carbon fuel regions of the United States.
With the finalization of this new supply contract, Gevo will
supply SAF to SAS from Gevo’s expanded Luverne, Minnesota plant,
which is expected to be constructed over the next several
years.
“SAS is a pioneer in the use of sustainable aviation fuel, such
as launching a new ancillary product that gives travelers the
option to reduce their climate impact through the purchase of
biofuel when booking a ticket, or at any time before departure.
This agreement is another step in that innovative approach to
sustainability,” says Patrick Gruber, Chief Executive Officer of
Gevo. “SAS is a leader in their commitment to SAF, and we are happy
to partner with them as we continue our crusade to lower the carbon
intensity of aviation fuels.”
“SAS has ambitious goals in reducing its' climate affecting
emissions by 25 percent in 2030. In order to do this and bridge the
gap to a future zero emission aviation we are determined to
increase the use of biofuels. This agreement is yet another
important step for SAS' transformation toward a more sustainable
aviation,” says Lars Andersen Resare, Head of Sustainability,
SAS.
For every gallon of SAF produced, Gevo also produces
approximately 10 pounds of protein that goes into the food supply
chain and can sequester up to 2 pounds of carbon dioxide as carbon
into the soil, making it one of the only renewable jet fuel
producers to produce both food and fuel while sequestering carbon
dioxide and lowering the GHG emissions as compared to traditional
fossil-based jet fuel. In addition to adding food back into the
food chain, Gevo will also be more transparent with its
sustainability practices by utilizing blockchain technology to
track its sustainable agriculture efforts.
About Gevo
Gevo is commercializing the next generation of gasoline, jet
fuel and diesel fuel with the potential to achieve zero carbon
emissions, addressing the market need of reducing greenhouse gas
emissions with sustainable alternatives. Gevo uses low-carbon
renewable resource-based carbohydrates as raw materials and is
developing renewable electricity and renewable natural gas for the
energy of production processes resulting in low-carbon fuels with
reduced carbon intensity (the level of greenhouse gas emissions
compared to standard petroleum) fossil-based fuels across their
lifecycle. Gevo’s products deliver the technical performance
expected of traditional fossil-based fuels in infrastructure and
engines, but significantly reduce greenhouse gas emissions. In
addition to addressing the problems of fuels, Gevo’s technology
also enables certain plastics, such as polyester, to be made with
more sustainable ingredients. Gevo’s ability to penetrate the
growing low-carbon fuels market depends on the price of oil and the
value of abating carbon emissions, which would otherwise increase
greenhouse gas emissions. Gevo believes that because of its ability
to use a variety of low-carbon, sustainably produced feedstocks and
its proven technology resulting in the economical production of the
main components of gasoline, jet fuel, and diesel fuel using a very
low carbon footprint, Gevo has the potential to generate returns
that justify the build-out of a multi-billion dollar business.
Learn more at our website: www.gevo.com.
About SAS
SAS, Scandinavia's leading airline, flies over 30 million
passengers to, from and within Scandinavia each year. The airline
has three main hubs – Copenhagen, Oslo and Stockholm – with 125
destinations in Europe, USA and Asia. Supported by its Scandinavian
Cultural Heritage and sustainable values, SAS is striving it reduce
its total carbon dioxide emissions by 25 percent and operate with
biofuels corresponding to the total consumption of aviation fuel
used in all SAS domestic flights, by the year 2030.
In addition to flight operations, SAS offers ground handling
services, technical maintenance and air cargo services. SAS is a
founder member of the Star Alliance™, and together with its partner
airlines offers around 19,000 daily flights to over 1,300
destinations worldwide.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements related to the agreement with SAS, Gevo’s
plans and ability to finance the construction of the facility to
produce the quantities of SAF required for the agreement with SAS,
Gevo’s ability to expand it’s Luverne, Minnesota plant to produce
greater quantities of SAF, Gevo’s ability to successfully utilize
blockchain technology to track its sustainable agriculture efforts,
and other statements that are not purely statements of historical
fact. These forward-looking statements are made based on the
current beliefs, expectations, and assumptions of the management of
Gevo and are subject to significant risks and uncertainty.
Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements
speak only as of the date they are made, and Gevo undertakes no
obligation to update or revise these statements, whether as a
result of new information, future events or otherwise. Although
Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2018 and in subsequent reports on Forms 10-Q and
8-K and other filings made with the U.S. Securities and Exchange
Commission by Gevo.
Investor and Media ContactShawn M. SeversonIntegra Investor
Relations+1 415-226-7747info@integra-ir.com
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