Gevo and Japan Airlines have signed a new fuel sales agreement. The agreement outlines the details for the purchase of 5.3 million gallons per year of sustainable aviation fuel (SAF) for five years, expected to begin in 2027. However, the agreement 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.
Japan Airlines is a member of oneworld® Alliance, and this agreement aligns with a memorandum of understanding (MoU) that oneworld and Gevo signed in March 2022, laying the groundwork for the purchase of up to 200 million gallons of SAF from Gevo’s commercial operations.
The sales agreement with JAL will extend Gevo’s global footprint for its sustainable fuel products, and also supports the company’s efforts towards 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 Patrick Gruber, Gevo’s CEO. “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 US Department of Energy to measure greenhouse gas emissions. Argonne GREET provides an accurate life cycle inventory of carbon and leverages the decarbonizing impact of sustainable agriculture and fuel-production practices.
Gevo’ claims that its Net-Zero business systems are expected to reduce GHG 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.
“JAL sees the value in reducing its dependence on fossil fuels while still being able to continue to use its existing aircraft,” added Gruber. “Our agreement will empower the company to achieve carbon-emissions reductions now as it explores other technologies to manage its energy transition.”