Business
oneworld® Alliance Members Plan to Purchase Up To 200 Million Gallons of Sustainable Aviation Fuel Per Year From Gevo
One member has already signed a definitive take-or-pay contract for 30MGPY, worth approximately $800 million across the life of the contract, inclusive of the
About this update from Gevo, Inc.
[{"type":"text","content":"One member has already signed a definitive take-or-pay contract for 30MGPY, worth approximately $800 million across the life of the contract, inclusive of the value from environmental benefits\nENGLEWOOD, Colo., March 21, 2022 (GLOBE NEWSWIRE) -- oneworld® Alliance, a network of world-class airlines, and Gevo, Inc. (NASDAQ: GEVO) announced today that certain oneworld members plan to purchase up to 200 million gallons per year of sustainable aviation fuel (“SAF”) from Gevo (the “oneworld Alliance SAF Purchase Goal”). The delivery of the SAF is expected to commence in 2027, for a five-year term. oneworld members Alaska Airlines, American Airlines, British Airways, Finnair, Japan Airlines and Qatar Airways expect to utilize Gevo’s SAF for their operations in California including San Diego, San Francisco, San Jose and Los Angeles International Airports. One member has already executed a binding fuel sales agreement whereby Gevo expects to produce and sell 30 million gallons per year of SAF in support of the oneworld Alliance SAF Purchase Goal. Based on current assumptions, including those around future pricing of commodities and the future values of certain environmental benefits, Gevo estimates that the fuel sales agreement should generate approximately $800 million of revenue, inclusive of the value from environmental benefits, across the life of the contract. Gevo’s SAF is expected to be produced using field corn products that will then be processed to create ethanol that will then be converted into SAF. Gevo expects to produce the SAF at one or more facilities under development in the Midwest of the United States. Gevo uses the Argonne GREET model, widely considered the gold standard of life cycle emissions modeling, as a central tenet of its sustainable business system. The model, developed and evolved by Argonne National Laboratory under the auspices of the U.S. Department of Energy, sets forth a program to track the lifecycle assessment of carbon for fuels and other products. Gevo’s business model has the potential to reduce greenhouse-gas emissions to net-zero over the entire lifecycle of each gallon of advanced renewable fuel, like SAF, and that includes the emissions resulting from burning the fuel in engines to power transportation. oneworld Chairman and Qatar Airways Group Chief Executive His Excellency Mr. Akbar Al Bake...