Gevo, Inc. (NASDAQ: GEVO) announced today that it
has joined with the San Francisco International Airport (SFO),
certain airlines and other industry participants for the use and
advancement of Sustainable Aviation Fuels (SAF), a low-carbon and
sustainably produced alternative to conventional, petroleum jet
fuel. Gevo has signed on to a Memorandum of Understanding (MOU)
with a group of eight airlines and certain fuel producers to work
cooperatively on expanding the use of Sustainable Aviation Fuels at
SFO. The consortium, initially formed in September 2018, is the
first of its kind to include fuel suppliers, airlines, and airport
agencies in a collaborative effort to accelerate the global
transition to SAF.
The four airlines – United Airlines, Alaska
Airlines, American Airlines, and Cathay Pacific – represent nearly
70% of all flights at SFO, while the four fuel producers include
SFO’s two primary suppliers, Chevron Corporation and Shell Oil
Company along with Neste and LanzaTech, Inc. Together with SFO Fuel
Company, LLC, the Airport’s Fuel Consortium, Gevo and these
partners will strive to increase SAF supply globally and at SFO.
Airlines at SFO currently use over 1 billion gallons of jet
fuel annually. If SAF suppliers are able to increase global
supply from the current 5 million gallons per year to 500 million
gallons per year, the use of SAF could prevent nearly 4.8 million
metric tons of greenhouse gas emissions per year – equivalent to
taking over one million cars off the roads.
“We are pleased to be a member of the Consortium
to advance the use of sustainable aviation fuel at SFO. We
are the only player at the table using low cost, sustainably
produced carbohydrates as a feedstock to produce renewable jet
fuel. In our production process, not only do we produce
renewable jet fuel, we also can produce large quantities of protein
for the food chain and even sequester carbon in the soil. In
fact, for every barrel of bio jet fuel produced by Gevo, we could
produce approximately 420 pounds of protein and sequester up to 60
pounds of carbon back into the soil. We are planning on expanding
our plant in Luverne, MN, to make it capable of producing nearly 10
million gallons per year of our sustainable alcohol-to-jet fuel,
and we are looking to build additional sustainable alcohol-to-jet
fuel production plants that could even use wood as a feedstock,”
said Dr. Patrick Gruber, Chief Executive Officer of Gevo.
“With this Memorandum of Understanding, we’re
moving the dial on an entire industry,” said SFO Airport Director
Ivar C. Satero. “A quantum leap of this kind requires partnering
with like-minded organizations, and we’re pleased that Gevo has
joined the airlines and fuel suppliers who are committed to
expanding the use of Sustainable Aviation Fuel in air
transportation.”
About Gevo
Gevo is a next generation “low-carbon” fuel
company focused on the development and commercialization of
renewable alternatives to petroleum-based products. Low-carbon
fuels reduce the carbon intensity, or the level of greenhouse gas
emissions, compared to standard fossil-based fuels across their
lifecycle. The most common low-carbon fuels are renewable fuels.
Gevo is focused on the development and production of mainstream
fuels like gasoline and jet fuel using renewable feedstocks that
have the potential to lower greenhouse gas emissions at a
meaningful scale and enhance agricultural production, including
food and other related products. In addition to serving the
low-carbon fuel markets, through Gevo’s technology, Gevo can also
serve markets for the production of chemical intermediate products
for solvents, plastics, and building block chemicals. Learn
more at our website: www.gevo.com
About Gevo’s Renewable Jet
Fuel
Gevo’s sustainable alcohol-to-jet fuel (“ATJ”)
is included in ASTM D7566 (Standard Specification for Aviation
Turbine Fuel Containing Synthesized Hydrocarbons) which makes it
eligible to be used as a blending component with standard Jet A-1
fuel for commercial airline use in the United States and
in many other countries around the globe. Gevo’s ATJ is
eligible to be used for up to a 50% blend in conventional jet fuel
for commercial flights. Gevo currently has the capability to
produce up to 80,000 gallons of ATJ with plans to increase
production to nearly 10 million gallons.
Gevo’s ATJ has been used to power commercial
flights since 2016. In June 2016, the first two commercial
flights using Gevo’s renewable alcohol to jet fuel (ATJ) took
place. Alaska Airlines used Gevo’s ATJ to fly from Seattle
to San Francisco International Airport and Ronald Reagan
Washington National Airport, respectively.
In October 2016, Gevo produced the world’s first
cellulosic renewable jet fuel meeting ASTM D7566. This
cellulosic ATJ was produced in conjunction with the Northwest
Advanced Renewables Alliance (NARA). NARA supplied the sugars
that were derived from forest residuals in the Pacific
Northwest. In November 2016, this cellulosic ATJ powered an Alaska
Airlines’ commercial flight that originated in Seattle and
flew to Ronald Reagan Washington National Airport.
In November 2017, Gevo’s ATJ was used by eight
commercial airlines for Fly Green Day, sponsored by the O’Hare Fuel
Committee, at Chicago O’Hare International Airport. This
event marked the first time renewable jet fuel has been supplied at
a commercial airport using the existing airport fueling
infrastructure, such as pipelines, terminals and tankage. The
commercial airlines that participated were: Lufthansa, United
Airlines, Etihad, Cathay Pacific Airways, Emirates, Japan Airlines,
Korean Air and Atlas Air.
In September 2018, Gevo and Virgin Australia
Airlines, with the support of the Queensland Government,
accomplished another industry first by being the first to supply
renewable jet fuel into a commercial airport infrastructure in
Australia. Like the Fly Green Day at Chicago O’Hare
International Airport in 2017, Gevo’s renewable jet fuel was
supplied using the general fuel system at Brisbane
Airport.
About San Francisco International
Airport
San Francisco International Airport (SFO) offers
non-stop flights to more than 49 international cities on 43
international carriers. The Bay Area's largest airport connects
non-stop with 85 cities in the U.S. on 12 domestic
airlines. SFO is proud to offer upgraded free Wi-Fi with no
advertising. For up-to-the-minute departure and arrival
information, airport maps and details on shopping, dining, cultural
exhibitions, ground transportation and more,
visit www.flysfo.com. Follow us
on www.twitter.com/flysfo and www.facebook.com/flysfo.
Forward-Looking Statements
Certain statements in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements relate to a variety of matters,
including, without limitation, statements related to the
Consortium, SFO, sustainable aviation fuel, markets and demand for
sustainable aviation fuel, Gevo’s plans, technology and products,
and other statements that are not purely statements of historical
fact. These forward-looking statements are made on the basis
of the current beliefs, expectations and assumptions of the
management of Gevo and are subject to significant risks and
uncertainty. Investors are cautioned not to place undue reliance on
any such forward-looking statements. All such forward-looking
statements speak only as of the date they are made, and Gevo
undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Although Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2017, as amended, and in subsequent reports on
Forms 10-Q and 8-K and other filings made with the U.S. Securities
and Exchange Commission by Gevo.
Investor and Media Contact
Shawn M. Severson Integra Investor Relations +1 415-226-7747
gevo@integra-ir.com
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