Iberia Airlines Enters Into New Fuel Sales Agreement with Gevo for 6 Million Gallons of Sustainable Aviation Fuel Per Year for Five Years
November 02 2022 - 4:01PM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Iberia Airlines, which is part of International
Airlines Group (IAG). The Agreement provides Iberia Airlines 6
million gallons per year of sustainable aviation fuel (SAF) for
five years from Gevo’s future commercial operations. Iberia
Airlines expects to commence fueling its aircraft with SAF from
Gevo in 2028. The expected value for the Agreement is deemed to be
$165 million over the five-year period, inclusive of the value from
environmental benefits for Gevo.
Iberia Airlines is based in Madrid and operates
an international flight network through its Madrid hub. As part of
IAG, Iberia Airlines is committed to achieving net-zero carbon
emissions by 2050, with 10% implementation of sustainable aviation
fuel (SAF) by 2030. Utilization of SAF is one of the key
opportunities for Iberia Airlines to reach its ambitious climate
change goals.
Gevo continues 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), which
includes the emissions resulting from burning the fuel in engines
to power transportation. The agreement with Iberia Airlines further
increases Gevo’s global impact by adding to its range of airline
partners.
“We are excited to welcome another member of IAG
to Gevo’s SAF customer roster,” said Dr. Patrick R. Gruber, Gevo’s
Chief Executive Officer. “The growth of the offtake agreements that
we are seeing for SAF reinforces that airlines are ready to make an
immediate impact and reduce their carbon intensity. With these
commitments, we have no doubt that Gevo can help them achieve their
sustainability targets.”
Iberia focuses on a four-pronged sustainability
strategy: the green transition of the aviation sector, a more
sustainable travel experience for its customers, turning Iberia
Airlines employees into ambassadors of its sustainability strategy,
and the commitment to society.
Teresa Parejo, Sustainability Director from
Iberia commented on this agreement “SAF is the best solution to
advance the decarbonization of the aviation sector, which will
reduce emissions alongside other technology solutions as they are
developed. This agreement with Gevo is part of our commitment of
achieving net zero emissions by 2050, and also part of the
investment being made by the entire aviation sector toward the
industry's green transition. This is a global challenge that must
be addressed globally and requires as much public-private
collaboration as possible”
About Gevo
Gevo’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 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
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, the Agreement with Iberia
Airlines, Gevo’s ability to develop, finance and construct one or
more production facilities to produce the SAF contemplated by the
Agreement with Iberia Airlines, the timing of Gevo producing the
SAF for Iberia Airlines, Gevo’s ability to produce SAF, the
attributes of Gevo’s products, Gevo’s ability to create net-zero
carbon intensity 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 Media ContactHeather L.
Manuel+1 303-883-1114PR@gevo.com
About IberiaIberia is Spain's
largest airline and the leading carrier between Europe and Latin
America. It belongs to the IAG group and is a member of the
oneworld airline alliance. Its aim is simply to be the best choice
for travel. Along with Iberia Express and Iberia Regional Air
Nostrum, it flies from its Madrid hub to some 50 countries around
the world. In addition to carrying passengers, Iberia has
diversified into the air freight, aircraft maintenance, and airport
handling services business.
Iberia Media ContactExternal Comms · Corporate
Communications(+34) 91 587 72 05prensa@iberia.es
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