Finnair and Gevo Enter into Sustainable Aviation Fuel Sales Agreement for 7 Million Gallons of Per Year Over Five Years
ENGLEWOOD, Colo., June 21, 2022 -- Gevo, Inc. is pleased to announce a new fuel sales agreement with Finnair. The agreement outlines the details for the purchase of 7 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo’s commercial operations. Deliveries of the SAF by Gevo are expected to begin in 2027. The expected value for the agreement to be $192 million over the five-year period, inclusive of the value from environmental benefits for Gevo.
Finnair is a member of oneworld Alliance, and this agreement falls under the purview of a memorandum of understanding (MoU) that oneworld and Gevo signed in April 2022, laying 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. The agreement with Finnair will broaden Gevo’s range of airline partners and grow its global footprint with its sustainable fuel products, and also supports our efforts in pursuit of our stated goal of producing and commercializing a billion gallons of SAF by 2030.
“Gevo was founded on the principle of building sustainability into every step of our process,” said Dr. Patrick R. Gruber, Gevo’s chief executive officer. “But it is not static—it’s always improving: We’re constantly incorporating new developments at every stage of our business system to reduce our carbon intensity. This is expected to make the renewable energy carried in our advanced renewable fuels even more impactful as they help to lower our customers’ carbon scores.”
Finnair uses an extensive toolkit to achieve emission reductions – using sustainable aviation fuels, reducing the weight of aircraft, developing fuel-efficient flight methods, offsetting, and engaging customers in reducing aviation emissions. Finnair is also actively exploring the possibilities of introducing new technologies into its operations.
“Finnair has ambitious emissions reduction targets: by the end of 2025, we intend to halve the level of net emissions from 2019 and achieve carbon neutrality latest by the end of 2045. SAF plays an important role for reaching these targets,” says Eveliina Huurre, SVP sustainability at Finnair.
Gevo’s process is designed to create multiple efficiencies by allowing the same acre of farmland to produce SAF from corn using atmospheric carbon while simultaneously adding high-value nutritional products to the food chain.
“Finnair knows the future will be built on renewable energy, and our SAF delivers renewable energy in a drop-in fuel that is expected to make an impact right away,” said Gruber. “Because its fungible, this SAF is expected to reduce the carbon intensity in any flight proportional to the blend used to fill up the aircraft.”
The agreement with Finnair 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.
