Alaska Airlines and Gevo Enter into Sustainable Aviation Fuel Sales Agreement for 37 Million Gallons Per Year for Five Years
August 03 2022 - 8:00AM
Gevo, Inc. (NASDAQ: GEVO) is pleased to announce a new fuel sales
agreement with Alaska Airlines (NYSE: ALK). The Agreement provides
for Alaska Airlines to purchase 37 million gallons per year of
sustainable aviation fuel (SAF) for five years through Gevo’s
future commercial operations. Gevo’s SAF deliveries are expected to
begin in 2026.
Alaska Airlines is a member of oneworld® global
alliance (oneworld), and this agreement falls
under the purview of a memorandum of understanding (MoU) that
Alaska Airlines and Gevo signed in March 2022, laying the
groundwork for the 14 world-class airlines in the alliance to
potentially purchase 200 million gallons of SAF per year, from
Gevo’s future commercial production operations. Gevo and Alaska
Airlines previously partnered in 2016 to demonstrate the use of the
first cellulosic renewable jet fuel specified for use on a
commercial airline flight, produced from the sugars of wood waste.
This Agreement with Alaska Airlines expands the list of committed
airline partners and supports Gevo’s pursuit of its stated goal of
producing and commercializing a billion gallons of SAF by 2030.
“As we continue to grow our partnerships with
oneworld airlines, I’m personally gratified to see
that Alaska Airlines has joined our list of partners,” said Gevo
CEO Dr. Patrick Gruber. “Alaska was the first airline to fly on a
Gevo experimental fuel that we made from the cellulosic fiber of
wood waste, providing a pathway and proof that waste woods can be
used to make sustainable aviation fuel. When Alaska Airlines
receives fuel from one of our Net-Zero facilities, they will do so
having been a part of some of our very important initial testing
and delivery of sustainable aviation fuel.”
Alaska Airlines is committed to alternatives that assist in its
goal of reducing emissions, including the use of greener
alternatives and the prioritization of programs that help them
safely burn less fuel. They have committed to pathways that will
help them achieve net-zero carbon emissions by 2040, with the
stated goal of being “the most sustainable and fuel-efficient U.S.
airline.”
“Using sustainable aviation fuel is a significant part of
Alaska’s five-part path to reach net zero carbon emissions, and we
are excited about this agreement with Gevo – alongside our partners
American Airlines and others in the oneworld
alliance.” said Diana Birkett Rakow, senior vice president of
public affairs and sustainability at Alaska Airlines. “We also
recognize that there is significant work required ahead – including
public policy action – to make SAF a viable, affordable option at
scale.”
To make renewable jet fuel, Gevo utilizes waste starch (or
sugars) from field corn that has been utilized in the production of
high protein animal feed. These non-edible waste products are
fermented into alcohol and then chemically converted to a renewable
jet fuel through proprietary processes. This fuel is an ASTM tested
and approved drop-in replacement for fossil-based jet fuel.
The Agreement with Alaska Airlines is subject to certain
conditions, 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 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 it possesses the technology and know-how to convert various
carbohydrate feedstocks through a fermentation process into
alcohols and then transform the alcohols into renewable fuels and
materials, through a combination of its own technology, know-how,
engineering, and licensing of technology and engineering from Axens
North America, Inc., which 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 Alaska Airlines Alaska Airlines and
its regional partners serve more than 120 destinations
across the United States, Belize, Canada, Costa
Rica and Mexico. It emphasizes Next-Level
Care for its guests, along with providing low fares,
award-winning customer service and sustainability
efforts. Alaska is a member of
the oneworld® global alliance. With the
alliance and its additional airline partners, guests can travel to
more than 1,000 destinations on more than 20 airlines while earning
and redeeming miles on flights to locations around the
world. Alaska Airlines and Horizon Air are
subsidiaries of Alaska Air Group.
Learn more about Alaska Airlines here: alaskaair.com
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 Gevo’s technology, the
Agreement with Alaska Airlines, Gevo’s ability to develop, finance
and construct one or more production facilities to produce the SAF
contemplated by the Agreement with Alaska Airlines, the timing of
Gevo producing the SAF for Alaska Airlines, the
oneworld® Alliance, Gevo’s ability to produce SAF,
the attributes of Gevo’s products, Gevo’s ability to create
net-zero carbon intensity products, 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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