Gevo, Future Energy Global sign 10m gallon per annum SAF agreement
Sustainable aviation fuel (SAF) ecosystem company Future Energy Global said it has signed a multi-year agreement with US-based renewable chemicals and advanced biofuels company Gevo to acquire Scope 1 and Scope 3 emissions credits from 10m gallons per annum of SAF.
“FEG’s collaboration with Gevo strongly enhances the portfolio of Book and Claim solutions we can offer our airlines, our lessors and our corporate customers,” says Natasha Mann, CEO and co-founder of FEG.
“It’s crucial to scale SAF production, and our business model lets us unlock the capital to do so. We’re impressed with Gevo’s pipeline, which combines technology ready for today’s market and additional technologies far along in development that could increase production efficiency and accelerate the trajectory of SAF scaling.”
The fuel will be produced at Gevo’s alcohol-to-jet facility ATJ-60.
In addition to the 10m gallon volume, the agreement also includes an option for FEG to increase the offtake at a later date.
The offtake commitment will help Gevo in financing the construction of its ATJ-60 facility. Gevo has secured a loan guarantee conditional commitment of $1.63bn (including capitalised interest during construction) from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) and is originating equity from project level capital providers.
“Gevo has always planned to leverage SAF market economics to scale our business, and a Book and Claim market that enables the trading of SAF environmental attributes can accelerate SAF production even faster,” says Dr. Patrick R. Gruber, CEO of Gevo.
“Future Energy Global is building just such a market, spanning corporate customers, airlines, and aircraft lessors. Aircraft lessors own about half of all commercial aircraft worldwide, and Book and Claim is a critical enabler to allow them and their airline customers to adopt SAF faster.”
Under development in Lake Preston, South Dakota, ATJ-60 is designed to produce 60m gallons of SAF per year at similar production costs to conventional jet fuel, but with far lower carbon emissions.
Earlier in March, Future Energy Global announced that it will supply Scope 3 certificates to Microsoft from airline purchases of SAF. The agreement is as part of Microsoft’s ongoing drive to reach net zero emissions by 2030.