Gevo, Inc. (NASDAQ:GEVO), which is commercializing the next generation of renewable premium gasoline, jet fuel and diesel fuel with the potential to achieve zero carbon emissions, has welcomed two announcements from the Scandinavian region regarding Sustainable Aviation Fuel (SAF).
The company noted that as part of Sweden’s target to be fossil-free by 2040, the Swedish Government announced on September 11, 2020, its intention to introduce a greenhouse gas (GHG) reduction mandate for aviation fuel. The reduction level is expected to be 0.8% in 2021 and gradually increase to 27% by 2030, with most of the savings expected to come from the use of SAF.
In addition to Sweden’s announcement, Norway announced earlier this year plans to introduce a 0.5% biofuel blending mandate. Norway’s ultimate target is for a 30% share of biofuels in the aviation sector by 2030.
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In a statement, Patrick R. Gruber, Gevo's chief executive officer said: “These announcements in Scandinavia further highlight the mega-trend around the world to de-carbonize the transportation industry in every way possible. We are always elated to hear of these positive announcements to support the reduction of Greenhouse gases.
“Gevo’s mission is to produce transportation fuels that lower greenhouse emissions. Gevo’s SAF product is approved for use in commerce and has already been used to power numerous commercial flights. Gevo looks forward to increasing its production capabilities for SAF to help countries like Sweden and Norway in the battle to reduce Greenhouse gas emissions.”
For every gallon of SAF produced, Gevo also produces approximately 10 pounds of protein that goes into the food supply chain and can sequester up to 2 pounds of carbon dioxide as carbon into the soil, making it one of the only renewable jet fuel producers to produce both food and fuel while sequestering carbon dioxide and lowering the GHG emissions as compared to traditional fossil-based jet fuel. In addition to adding food back into the food chain, Gevo will also be more transparent with its sustainability practices by utilizing blockchain technology to track its sustainable agriculture efforts.
In April 2016, ASTM International completed its process of approving a revision of ASTM D7566 (Standard Specification for Aviation Turbine Fuel Containing Synthesized Hydrocarbons) to include alcohol to jet synthetic paraffinic kerosene derived from renewable isobutanol. This allows Gevo’s SAF to be used as a blending component in standard Jet A-1 fuel for commercial airline use in the US and around the globe.
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 company says it'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 believes that its proven, patented, technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low carbon products such as gasoline components, jet fuel, and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion dollar business.
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