Finnair and Gevo Enter into Sustainable Aviation Fuel Sales Agreement for 7 Million Gallons of Per Year Over Five Years
June 21 2022 - 8:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Finnair. The Agreement outlines the details for the
purchase of 7 million gallons per year of sustainable aviation fuel
(SAF) for five years from Gevo’s commercial operations. Deliveries
of the SAF by Gevo are expected to begin in 2027. The expected
value for the Agreement to be $192 million over the five-year
period, inclusive of the value from environmental benefits for
Gevo.
Finnair is a member of oneworld® Alliance, and this Agreement
falls under the purview of a memorandum of understanding (MoU) that
oneworld and Gevo signed in April 2022, laying the groundwork for
the 14 world-class airlines in the alliance to purchase 200 million
gallons of SAF per year, from Gevo’s commercial operations. The
Agreement with Finnair will broaden Gevo’s range of airline
partners and grow its global footprint with its sustainable fuel
products, and also supports our efforts in pursuit of our stated
goal of producing and commercializing a billion gallons of SAF by
2030.
“Gevo was founded on the principle of building sustainability
into every step of our process,” said Dr. Patrick R. Gruber, Gevo’s
Chief Executive Officer. “But it is not static—it’s always
improving: We’re constantly incorporating new developments at every
stage of our business system to reduce our carbon intensity. This
is expected to make the renewable energy carried in our advanced
renewable fuels even more impactful as they help to lower our
customers’ carbon scores.”
Finnair uses an extensive toolkit to achieve emission reductions
– using sustainable aviation fuels, reducing the weight of
aircraft, developing fuel-efficient flight methods, offsetting, and
engaging customers in reducing aviation emissions. Finnair is also
actively exploring the possibilities of introducing new
technologies into its operations.
“Finnair has ambitious emissions reduction targets: by the end
of 2025, we intend to halve the level of net emissions from 2019
and achieve carbon neutrality latest by the end of 2045. SAF plays
an important role for reaching these targets,” says Eveliina
Huurre, SVP Sustainability at Finnair.
Gevo’s process is designed to create multiple efficiencies by
allowing the same acre of farmland to produce SAF from corn using
atmospheric carbon while simultaneously adding high-value
nutritional products to the food chain.
“Finnair knows the future will be built on renewable energy, and
our SAF delivers renewable energy in a drop-in fuel that is
expected to make an impact right away,” said Dr. Gruber. “Because
its fungible, this SAF is expected to reduce the carbon intensity
in any flight proportional to the blend used to fill up the
aircraft.”
The Agreement with Finnair 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 Finnair Finnair is a network airline,
specialising in connecting passenger and cargo traffic between
Asia, North America and Europe. Sustainability is at the heart of
everything we do – Finnair intends to reduce its net emissions by
50% by the end of 2025 from the 2019 baseline and achieve carbon
neutrality latest by the end of 2045. Finnair is a member of the
oneworld alliance. Finnair Plc’s shares are quoted on the Nasdaq
Helsinki stock exchange.
Learn more about Finnair here: finnair.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 Finnair, Gevo’s ability to develop, finance and
construct one or more production facilities to produce the SAF
contemplated by the Agreement with Finnair, the timing of Gevo
producing the SAF for Finnair, Gevo’s estimate of the expected
value of the Agreement with Finnair, the oneworld Alliance, Gevo’s
production of 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.
Media ContactHeather L.
Manuel+1 303-883-1114IR@gevo.com
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