Delta enters offtake agreement with Gevo for 10 million gallons per year of sustainable aviation fuel, creates long-term carb...
December 17 2019 - 9:00AM
Gevo, Inc. (NASDAQ: GEVO) – Delta’s work to create a
sustainable future continues with a long-term offtake agreement
under which Delta will purchase 10 million gallons per year of
advanced renewable biofuels from Gevo. Sustainable aviation fuels
provide significant environmental benefits because the lifecycle
carbon footprint can be up to 75 percent less than conventional jet
fuel.
Delta’s agreement with Gevo complements the airline’s recent $2
million investment in Northwest Advanced Bio-fuels, LLC for the
feasibility study of a facility to produce sustainable aviation
fuel and other biofuel products in Washington State. The airline’s
investment in sustainable fuel is only one example of Delta’s work
to positively impact the environment, maintain its commitment to
carbon neutral growth and reduce emissions 50 percent by 2050.
“Long term investments such as our agreement with Gevo are
critical to Delta’s goal to lower our carbon footprint while
planning for a more sustainable future,” stated Graeme Burnett,
Senior Vice President - Fuel Management at Delta Air Lines. “Fuel
is an airline’s biggest area of impact and therefore presents our
greatest opportunity to drive solutions that care for the
planet.”
Powered by inedible, industrial corn products, or no. 2 corn,
Gevo’s patented process separates the sugar from the proteins in
the corn product. The sugars are then used to make the jet fuel,
while the proteins are fed to livestock. After capturing and
converting the livestock manure into biogas digestors that can
displace fossil-based natural gas, the solids produced are used as
fertilizer for the fields, thereby creating a continuous, renewable
manufacturing cycle.
“We have such great potential in our business system to break
paradigms as to what is possible. We are working to create a
business system that works hand-in-hand with agriculture to improve
sustainability and lower the carbon emissions of jet fuel while
producing protein for food chain use,” said Patrick R. Gruber,
Gevo’s Chief Executive Officer. “Not only does our system produce
enormous quantities of protein, we are working to get off the grid
by installing wind power for electricity and manure digestors to
produce biogas. We want our Luverne Facility to embody the
‘circular economy’.”
The sustainable aviation fuel is expected to be produced upon
completion of an expansion to Gevo’s existing advanced biofuel
production facility in Luverne, Minn. and is expected to be
available for use by Delta between 2022-2023.
A copy of the fuel sales agreement between Delta and Gevo has
been filed with the U.S. Securities and Exchange Commission on Form
8-K.
Delta’s Commitment to Sustainability
Since 2005, Delta has reduced its jet fuel consumption, leading
to an 11 percent decrease in emissions as Delta works toward its
long-term goal of reducing emissions by 50 percent by 2050. Delta
is also investing in new, more fuel-efficient aircraft to optimize
the use of jet fuel. In July, Delta flew the first of 20
carbon-neutral new aircraft delivery flights from the Airbus final
assembly line in Mobile, Ala., utilizing sustainable aviation fuel
and carbon offsets in coordination with Airbus and Air BP.
These sustainability efforts have resulted in Delta being
awarded the Vision for America Award by Keep America
Beautiful in 2017 and the Captain Planet
Foundation's Superhero Corporate Award in 2018, as well
as being named to the FTSE4Good Index five consecutive years and
the Dow Jones Sustainability North America Index nine
consecutive years.
About GevoGevo is commercializing the next
generation of gasoline, jet fuel and diesel fuel with the potential
to achieve zero carbon emissions, addressing the market need of
reducing greenhouse gas emissions with sustainable alternatives.
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 lifecycle).
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
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, including, without limitation, statements related to the
fuel sales agreement between Gevo and Delta Air Lines, Gevo’s
ability to produce the sustainable aviation fuel contemplated by
the fuel sales agreement, Gevo’s ability to finance and construct
the expansion to its production facility located in Luverne, MN to
produce the sustainable aviation fuel contemplated by the fuel
sales agreement, Gevo’s business plans 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, 2018
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.
Investor and Media ContactShawn M. SeversonIntegra Investor
Relations+1 415-226-7747info@integra-ir.com
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