Qatar Airways Enters into New Fuel Sales Agreement with Gevo for 5 Million Gallons of Sustainable Aviation Fuel Per Year Over Five Years
October 25 2022 - 8:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Qatar Airways (Qatar). The agreement sets forth the
terms for the purchase of 5 million gallons per year of sustainable
aviation fuel (SAF) for five years from Gevo’s future commercial
operations. Gevo’s delivery of SAF under this agreement is expected
to begin in 2028 at various airports in California.
Qatar is a member of oneworld®
Alliance, and this agreement falls within the purview of a
memorandum of understanding (MoU) that oneworld
Alliance members and Gevo signed in March 2022, laying the
groundwork for the associated world-class airlines in the alliance
to purchase up to 200 million gallons of SAF per year from Gevo’s
future commercial operations. The agreement with Qatar will further
enhance Gevo’s global footprint for its sustainable fuel products
and also supports Gevo’s efforts in pursuit of its stated goal of
producing and commercializing a billion gallons of SAF by 2030.
“By working with farmers on regenerative
agricultural practices, Gevo can sustainability source feedstock to
produce sustainable aviation fuel, while also increasing soil
health, sequestering carbon, and providing nutritional products to
the food chain,” said Dr. Patrick R. Gruber, Gevo’s Chief Executive
Officer. “By building sustainability into every step of our
business system, from sustainably grown feedstock to using
renewable energy for production, we are helping Qatar and other
members of the oneworld Alliance to reach their
emission reduction goals.”
Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al
Baker, said, “Qatar Airways continues to prioritize our commitment
to net-zero flying by the middle of this century. Decarbonizing
aviation requires the gradual incorporation of lower carbon and
sustainable aviation fuels, and we are proud to collaborate on this
global effort for a better future.”
The agreement with Qatar 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 the 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 it possesses the technology and know-how to convert various
carbohydrate feedstocks through a fermentation process into
alcohols and then transform the alcohols into renewable fuels and
materials, through a combination of its own technology, know-how,
engineering, and licensing of technology and engineering from Axens
North America, Inc., which 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 Qatar AirwaysA multiple award-winning
airline, Qatar Airways was announced as the ‘Airline of the Year’
at the 2021 World Airline Awards, managed by the international air
transport rating organization, Skytrax. It was also named ‘World’s
Best Business Class’, ‘World’s Best Business Class Airline Lounge’,
‘World’s Best Business Class Airline Seat’, ‘World’s Best Business
Class Onboard Catering’ and ‘Best Airline in the Middle East’. The
airline continues to stand alone at the top of the industry having
won the main prize for an unprecedented sixth time (2011, 2012,
2015, 2017, 2019 and 2021). Qatar Airways currently flies to more
than 150 destinations worldwide, connecting through its Doha hub,
Hamad International Airport, voted by Skytrax as the ‘World’s Best
Airport’ 2022.Qatar Airways recognizes the importance of
environmental sustainability in aviation. They are committed to
being at the forefront and working in collaboration with our global
and regional partners on achieving the industry’s decarbonization
goals.
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 the agreement with Qatar,
Gevo’s ability to produce SAF, Gevo’s ability to develop, finance
and construct one or more production facilities to produce the SAF
contemplated by the agreement with Qatar, the timing of Gevo
producing the SAF for Qatar, Gevo’s technology, 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 ContactHeather L. Manuel+1
303-883-1114IR@gevo.com
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