Japan Airlines Enters into New Fuel Sales Agreement with Gevo for 5.3 Million Gallons of Sustainable Aviation Fuel Per Year Over Five Years
07 Juni 2022 - 3:00PM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Japan Airlines Co., Ltd. (JAL). The Agreement
outlines the details for the purchase of 5.3 million gallons per
year of sustainable aviation fuel (SAF) for five years with
deliveries expected to begin in 2027.
JAL is a member of oneworld® Alliance, and this
Agreement falls within the purview of a memorandum of understanding
(MoU) that oneworld and Gevo signed in March 2022,
laying the groundwork for the associated world-class airlines in
the Alliance to purchase up to 200 million gallons of SAF from
Gevo’s commercial operations. The agreement with JAL will further
enhance Gevo’s global footprint for its sustainable fuel products,
and also supports Gevo’s efforts in pursuit of its stated goal of
producing and commercializing a billion gallons of SAF by 2030.
“Our sustainable aviation fuel is a drop-in fuel that delivers
renewable energy where it’s needed,” said Dr. Patrick R. Gruber,
Gevo’s Chief Executive Officer. “Our process is a model of
efficiency, designed to allow the same acre of farmland to produce
SAF from corn using atmospheric carbon while simultaneously adding
high-value nutritional products to the food chain.”
Gevo uses the Argonne GREET® model established by Argonne
National Laboratory with the support of the U.S. Department of
Energy to measure greenhouse gas emissions. Argonne GREET provides
an accurate lifecycle inventory of carbon and leverages the
decarbonizing impact of sustainable agriculture and fuel-production
practices. Gevo’s Net-Zero business systems are expected to reduce
greenhouse-gas emissions to net-zero over the entire lifecycle of
each gallon of advanced renewable fuel produced, including its SAF,
and that includes the emissions resulting from burning the fuel in
engines to power transportation.
As the airline industry has worked to reduce carbon dioxide
emissions by cutting the quantity of fuel used, JAL and other
oneworld members acknowledge that, to achieve
further reductions in emissions going forward, they need to change
the fuels, too, and expect that the use of SAF will become
widespread toward 2030 and on. JAL and oneworld
have the common ultimate goal of net-zero emission by 2050, with an
intermediate target of replacing 10% of conventional jet fuel to
SAF by 2030, and Gevo is a vital part of achieving that goal.
“JAL sees the value in reducing its dependence on fossil fuels
while still being able to continue to use its existing aircraft,”
says Gruber. “Our agreement will empower the company to achieve
carbon-emissions reductions now as it explores other technologies
to manage its energy transition.”
The agreement with JAL 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 the 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 Japan Airlines Japan Airlines (JAL) was
founded in 1951 and became the first international airline in
Japan. A member of the oneworld® alliance,
the airline now reaches 349 airports in 52 countries and regions
together with its codeshare partners with a modern fleet of 230
aircraft. JAL Mileage Bank (JMB), the airline's loyalty program, is
one of the largest mileage programs in Asia. Awarded as one of the
most punctual major international airlines and a certified 5-Star
Airline by Skytrax, JAL is committed to providing customers with
the highest levels of flight safety and quality in every aspect of
its service, and one of the most preferred airlines in the world.
Learn more about Japan Airlines here: https://www.jal.com/en/
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 the agreement with JAL,
Gevo’s ability to develop, finance and construct one or more
production facilities to produce the SAF contemplated by the
agreement with JAL, the timing of Gevo producing the SAF for JAL,
Gevo’s estimate of the future revenue from the agreement with JAL,
Gevo’s technology, 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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