Gevo Inc (NASDAQ:GEVO) hailed US President Joe Biden's new actions to support sustainable aviation fuel (SAF), a key part of reducing carbon emissions from air travel.
As part of the Biden administration's plans to expand the availability of higher biofuels-blended gasoline throughout the summer, it has also announced a series of initiatives that will create economic opportunity for agricultural communities by spurring the SAF market.
Three of the key proposals are aimed at supporting increased production of SAF to at least 3 billion gallons per year by 2030; new and ongoing funding opportunities for SAF projects totaling up to $4.3 billion, and an increase in research and development activities to achieve at least a 30% improvement in aircraft fuel efficiency.
"Gevo believes that SAF and expanding access to biofuel-blended gasoline are essential components of American energy independence," said Gevo CEO Dr Patrick R Gruber in a statement. "Bio-feedstocks can cut carbon, produce food, create domestic jobs, and ensure farmers are maximizing their incomes.”
The Englewood, Colorado-based company said more than “four out of five Americans” support increased renewable fuel production.
“The Biden Administration is taking a good step forward," added Dr Gruber.
In March this year, Gevo revealed that it signed an agreement with Delta to supply 75 million gallons of sustainable aviation fuel annually for seven years, demonstrating the demand for SAF as airlines seek ways to lower their own, as well as their customers' carbon footprints. Gevo estimates that the agreement should generate about $2.8 billion of revenue, inclusive of the value from environmental benefits
Gevo said it is focused on sustainability “at every stage of production” and has developed two alcohol-to-jet pathways that can utilize various feedstocks grown using renewable agricultural and sustainable farming techniques. These feedstocks are then converted, in some cases, to high-value nutrition products and energy-dense liquid hydrocarbons, including SAF.
Gevo said its production processes will incorporate renewable energy, including wind turbines, biogas, and combined heat and power systems to “increase efficiency and reduce carbon intensity to net-zero levels,” which will then be passed on to the customer through the fuel. This is particularly helpful for customers, such as airlines, that seek to reduce their carbon intensity, said the company.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive