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Gevo to supply Delta Air with 10 million gallons of sustainable aviation fuel annually

The biofuel made from corn is expected to be available for use by Delta between 2022-2023

Gevo Inc - Gevo to supply 10 million gallons per year of advanced renewable biofuels to Delta
Gevo is expanding its advanced biofuel production facility in Luverne, Minnesota

Gevo Inc (NASDAQ:GEVO) announced Tuesday that it will supply 10 million gallons per year of advanced renewable biofuels to Delta Air Lines Inc (NYSE:DAL) under a long-term offtake agreement. 

The company's stock recently traded up nearly 8% to $2.48 a share in New York. 

Delta’s deal with Gevo complements the airline’s recent $2 million investment in Northwest Advanced Bio-fuels LLC for the feasibility study of a facility to produce sustainable aviation fuel and other biofuel products in Washington State. 

The airline’s investment in sustainable fuel is only one example of Delta’s work to positively impact the environment, maintain its commitment to carbon-neutral growth and reduce emissions 50% by 2050.

READ: Gevo teams with Scandinavian Airline System to supply sustainable aviation fuel in US

“Long term investments such as our agreement with Gevo are critical to Delta’s goal to lower our carbon footprint while planning for a more sustainable future,” said Graeme Burnett, senior vice president - fuel management at Delta. “Fuel is an airline’s biggest area of impact and therefore presents our greatest opportunity to drive solutions that care for the planet.”

Powered by inedible, industrial corn products, or Number 2 corn, Gevo’s patented process separates the sugar from the proteins in the corn product. The sugars are then used to make the jet fuel, while the proteins are fed to livestock. After capturing and converting the livestock manure into biogas digestors that can displace fossil-based natural gas, the solids produced are used as fertilizer for the fields, thereby creating a continuous, renewable manufacturing cycle.

“We have such great potential in our business system to break paradigms as to what is possible. We are working to create a business system that works hand-in-hand with agriculture to improve sustainability and lower the carbon emissions of jet fuel while producing protein for food chain use,” said Gevo CEO Patrick Gruber. 

“Not only does our system produce enormous quantities of protein, we are working to get off the grid by installing wind power for electricity and manure digesters to produce biogas. We want our Luverne Facility to embody the ‘circular economy’.”

The sustainable aviation fuel is expected to be produced upon completion of an expansion to Gevo’s existing advanced biofuel production facility in Luverne, Minnesota and is expected to be available for use by Delta between 2022-2023.

A copy of the fuel sales agreement between Delta and Gevo has been filed with the US Securities and Exchange Commission on Form 8-K.

Commitment to sustainability

Since 2005, Delta has reduced its jet fuel consumption, leading to an 11% decrease in emissions as Delta works toward its long-term goal of reducing emissions by 50% by 2050. Delta is also investing in new, more fuel-efficient aircraft to optimize the use of jet fuel. In July, Delta flew the first of 20 carbon-neutral new aircraft delivery flights from the Airbus final assembly line in Mobile, Alabama, utilizing sustainable aviation fuel and carbon offsets in coordination with Airbus and Air BP.

These sustainability efforts have resulted in Delta being awarded the Vision for America Award by Keep America Beautiful in 2017 and the Captain Planet Foundation's Superhero Corporate Award in 2018, as well as being named to the FTSE4Good Index five consecutive years and the Dow Jones Sustainability North America Index nine consecutive years.

Gevo, based in Englewood, Colorado, is commercializing the next generation of gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, addressing the market need of reducing greenhouse gas emissions with sustainable alternatives.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Gevo Inc

Price: 0.96 USD

NASDAQ:GEVO
Market: NASDAQ
Market Cap: $72.7 m
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on 09/09/2020

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