Gevo Inc (NASDAQ:GEVO) has announced a new sales agreement with Finnair for the purchase of 7 million gallons of sustainable aviation fuel (SAF) for five years starting in 2027.
The company said the deal would broaden its range of airline partners, grow its global footprint with its sustainable fuel products, and support its efforts towards its goal of producing and commercializing a billion gallons of SAF by 2030.
Because Finnair is a member of the oneworld alliance and the agreement falls under the memorandum of understanding signed between oneworld and Gevo in April 2022, Gevo said the agreement will lay 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.
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The expected value of the deal is $192 million over the five-year period, inclusive of the value from environmental benefits for Gevo.
Gevo CEO Patrick Gruber said Finnair knows the future will be built on renewable energy and that SAF delivers renewable energy in a drop-in fuel that is expected to make an impact right away.
“Because it's fungible, this SAF is expected to reduce the carbon intensity in any flight proportional to the blend used to fill up the aircraft,” he said.
Finnair SVP for sustainability Eveliina Huurre said SAF will play an important role in helping the airline reach its ambitious emissions reduction targets.
“By the end of 2025, we intend to halve the level of net emissions from 2019 and achieve carbon neutrality at the latest by the end of 2045,” Huurre said.
Gevo is a next-generation low-carbon fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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