Gevo announces new 6.3M-gallon SAF sales agreement with Aer Lingus
July 18, 2022
Gevo, Inc. is pleased to announce a new fuel sales agreement with Aer Lingus, which is owned by International Airlines Group (IAG). The agreement provides for Aer Lingus to purchase 6.3 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo’s future commercial operations. Aer Lingus expects to commence fuelling its aircraft with SAF from Gevo in 2026. The expected value for the agreement is deemed to be $173 million, inclusive of the value from environmental benefits for Gevo.
Aer Lingus, the Irish flag carrier is committed to a lower-carbon future. As part of International Airlines Group (IAG), Aer Lingus has pledged to achieve net-zero carbon emissions by 2050 and has committed to powering 10 per cent of its flights using sustainable aviation fuel (SAF) by 2030. The introduction of SAF as a renewable fuel source is instrumental for the airline in realizing its ambitions.
Gevo expects to continue to pursue its stated goal of producing and commercializing one billion gallons of SAF by 2030. By using the Argonne GREET model to provide a lifecycle inventory of carbon, Gevo has a business model designed to reduce greenhouse-gas emissions to net-zero over the entire lifecycle of each gallon of advanced renewable fuel, including its SAF, and that includes the emissions resulting from burning the fuel in engines to power transportation. The agreement with Aer Lingus further increases Gevo’s global impact by adding to its range of airline partners.
“Gevo’s sustainable aviation fuel delivers renewable energy to a transportation sector that is actively seeking to reduce its carbon intensity,” said Dr. Patrick R. Gruber, Gevo’s chief executive officer. “Because our fuel is fungible and drop-in ready, it’s expected to have an immediate impact to help our partner airlines achieve their sustainability targets ahead of schedule.”
In addition to its investment in SAF, a critical focus of Aer Lingus’ sustainability program is the modernization of its fleet. In recent years the Irish flag carrier has invested in new generation, more fuel-efficient, aircraft such as Airbus A321neo. Aer Lingus plans to modernize further with A32neo aircraft and A321neo XLR.
Speaking about fuel supply deal, Aer Lingus chief executive officer, Lynne Embleton said, “This agreement with Gevo marks an exciting and critical step on our journey to net-zero carbon emissions and underlines our commitment to powering 10 per cent of flights using sustainable aviation fuel by 2030. The sustainable aviation fuel produced by Gevo will be used to power our flights from Los Angeles and San Francisco and, from 2026, 50 per cent of fuel purchased by Aer Lingus from California will be sustainable aviation fuel.”
The agreement with Aer Lingus 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.
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