Aer Lingus Enters into New Fuel Sales Agreement with Gevo for 6.3 Million Gallons of Sustainable Aviation Fuel Per Year Over Five Years
July 13 2022 - 6:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Aer Lingus, which is owned by International Airlines
Group (IAG). The Agreement provides for Aer Lingus to purchase 6.3
million gallons per year of sustainable aviation fuel (SAF) for
five years from Gevo’s future commercial operations. Aer Lingus
expects to commence fuelling its aircraft with SAF from Gevo in
2026. The expected value for the Agreement is deemed to be $173
million, inclusive of the value from environmental benefits for
Gevo.
Aer Lingus, the Irish flag carrier is committed
to a lower-carbon future. As part of International Airlines Group
(IAG), Aer Lingus has pledged to achieve net-zero carbon emissions
by 2050 and has committed to powering 10% of its flights using
sustainable aviation fuel (SAF) by 2030. The introduction of
SAF as a renewable fuel source is instrumental for the airline in
realizing its ambitions.
Gevo expects to continue to pursue its stated goal of producing
and commercializing one billion gallons of SAF by 2030. By using
the Argonne GREET model to provide a lifecycle inventory of carbon,
Gevo has a business model designed to reduce greenhouse-gas
emissions to net-zero over the entire lifecycle of each gallon of
advanced renewable fuel, including its SAF, and that includes the
emissions resulting from burning the fuel in engines to power
transportation. The agreement with Aer Lingus further increases
Gevo’s global impact by adding to its range of airline
partners.
“Gevo’s sustainable aviation fuel delivers renewable energy to a
transportation sector that is actively seeking to reduce its carbon
intensity,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive
Officer. “Because our fuel is fungible and drop-in ready, it’s
expected to have an immediate impact to help our partner airlines
achieve their sustainability targets ahead of schedule.”
In addition to its investment in SAF, a critical focus of Aer
Lingus’ sustainability program is the modernization of its fleet.
In recent years the Irish flag carrier has invested in new
generation, more fuel-efficient, aircraft such as Airbus A321neo.
Aer Lingus plans to modernize further with A32neo aircraft and
A321neo XLR.
Speaking about fuel supply deal, Aer Lingus
Chief Executive Officer, Lynne Embleton said, “This agreement with
Gevo marks an exciting and critical step on our journey to net-zero
carbon emissions and underlines our commitment to powering 10% of
flights using sustainable aviation fuel by 2030. The sustainable
aviation fuel produced by Gevo will be used to power our flights
from Los Angeles and San Francisco and, from 2026, 50% of fuel
purchased by Aer Lingus from California will be sustainable
aviation fuel.”
The Agreement with Aer Lingus 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.
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.
Gevo believes that the Argonne National Laboratory GREET model
is the best available standard of scientific-based measurement for
life cycle inventory or LCI.
Learn more at Gevo’s website: www.gevo.com
About Aer Lingus Aer Lingus is the Irish flag
carrier, founded in 1936. In summer 2022, Aer Lingus will operate
over 100 routes, flying to over 71 direct routes and to 62
destinations from Ireland to the UK and Europe. The airline
operates 16 transatlantic routes from Dublin, Shannon and
Manchester UK to North America and the Caribbean. Aer Lingus is a
4-Star airline, awarded by Skytrax, the international air transport
rating organisation. Aer Lingus is a member of International
Airlines Group (IAG), one of the world's largest airline
groups.
Aer Lingus was awarded Stage 1 IEnvA
certification in June 2021. This is an environmental management and
evaluation system designed to independently assess and improve the
environmental performance of an airline. Aer Lingus has begun its
journey to achieving IEnvA Stage 2.
For more info, visit www.aerlingus.com.
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 Gevo’s technology, Aer
Lingus, the International Airlines Group, IAG, Gevo’s ability to
develop, finance, construct and operate commercial production
facilities to produce the SAF for Aer Lingus, financial
projections, 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.
Media
Contacts |
|
Heather L. Manuel |
Paula Donaghy |
+1 303-883-1114 |
Aer Lingus |
IR@gevo.com |
pressqueries@aerlingus.com |
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