oneworld® Alliance, a network of world-class
airlines, and Gevo, Inc. (NASDAQ: GEVO) announced today that
certain
oneworld members plan to purchase up to
200 million gallons per year of sustainable aviation fuel (“SAF”)
from Gevo (the “
oneworld Alliance SAF Purchase
Goal”). 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 of
the United States.
Gevo uses the Argonne GREET model, widely considered the gold
standard of life cycle emissions modeling, as a central tenet of
its sustainable business system. The model, developed and evolved
by Argonne National Laboratory under the auspices of the U.S.
Department of Energy, sets forth a program to track the lifecycle
assessment of carbon for fuels and other products. Gevo’s business
model has the potential to reduce greenhouse-gas emissions to
net-zero over the entire lifecycle of each gallon of advanced
renewable fuel, like SAF, and that includes the emissions resulting
from burning the fuel in engines to power transportation.
oneworld Chairman and Qatar
Airways Group Chief Executive His Excellency Mr. Akbar Al Baker
said: “As the aviation industry continues to face new challenges,
today’s announcement underlines the positive outcome of the
multilateral collaboration between industry stakeholders. It
reaffirms the leadership of our alliance in supporting the
ambitious aviation decarbonisation targets, as well as our active
role in driving the use of ICAO recognized SAF at a commercial
scale.”
oneworld CEO Rob Gurney said,
“Five months ago, we committed as an alliance to a target of 10%
sustainable aviation fuel by 2030. Today’s announcement of a second
major sustainable aviation fuel offtake among member airlines
builds further upon that commitment, while demonstrating the value
that can be delivered when our member airlines work together.”
“When oneworld member airlines
show they understand the importance of reducing fossil-carbon
greenhouse gas emissions, they start making real change in the
industry”, said Dr. Patrick R. Gruber, Gevo’s Chief Executive
Officer. “Eliminating fossil-based emissions from the life-cycle of
jet fuel is our mission. Net-Zero SAF is what we all want. I’m
pleased that oneworld is on board.”
Gevo is focused on sustainability at every stage
of production, and has developed two alcohol-to-jet pathways that
can utilize various feedstocks grown using renewable agricultural
and sustainable farming techniques. These feedstocks are then
converted, in some cases, to high-value nutrition 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 will then be passed on to the customer through the fuel. This
is particularly helpful for customers, such as airlines, that seek
to reduce their carbon intensity.
About GevoGevo’s mission is to transform
renewable energy and carbon into energy-dense liquid hydrocarbons.
These liquid hydrocarbons can be used for drop-in transportation
fuels such as gasoline, jet fuel and diesel fuel, that when burned
have potential to yield net-zero greenhouse gas emissions when
measured across the full life cycle of the products. Gevo uses
low-carbon renewable resource-based carbohydrates as raw materials,
and is in an advanced state of developing renewable electricity and
renewable natural gas for use in production processes, resulting in
low-carbon fuels with substantially reduced carbon intensity (the
level of greenhouse gas emissions compared to standard petroleum
fossil-based fuels across their life cycle). Gevo’s products
perform as well or better than traditional fossil-based fuels in
infrastructure and engines, but with substantially reduced
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 that
would otherwise increase greenhouse gas emissions. Gevo believes
that its proven, patented technology enabling the use of a variety
of low-carbon sustainable feedstocks to produce price-competitive
low-carbon products such as gasoline components, jet fuel and
diesel fuel yields the potential to generate project and corporate
returns that justify the build-out of a multi-billion-dollar
business.
Learn more at Gevo’s website: www.gevo.com
About oneworld® Alliance
oneworld member airlines work together to
deliver consistently a superior, seamless travel experience, with
special privileges and rewards for frequent flyers, including
earning and redeeming miles and points across the entire alliance
network. Top-tier cardholders (Emerald and Sapphire) enjoy access
to airport lounges and are offered extra baggage allowances. The
most regular travelers (Emerald) can also use fast track security
lanes at select airports. Learn more about the
oneworld Alliance at oneworld.com. Follow us on
Facebook, Instagram, Twitter and LinkedIn.Forward-Looking
StatementsCertain 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, without
limitation, including whether members of oneworld Alliance will
enter into binding, legal agreements to purchase SAF from Gevo,
Gevo’s ability to produce SAF, the fuel sales agreement that has
already been executed, Gevo’s estimate of the future revenue from
the fuel sales agreement, Gevo’s technology, Gevo’s development,
financing and construction of production facilities to produce SAF,
the attributes of Gevo’s products, and other statements that are
not purely statements of historical fact. These forward-looking
statements are made on the basis of 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, 2021,
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.
Gevo Investor and Media ContactHeather L.
Manuel+1 720-418-0085IR@gevo.com
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