Delta Air Lines signs 7-year, 75 mgy SAF deal with Gevo worth $2.8 billion
Gevo Inc. has signed a “take-or-pay” agreement with Delta Air Lines Inc. to supply 75 million gallons per year (mgy) of sustainable aviation fuel (SAF) for seven years, Gevo announced March 22. The company estimates the agreement to be worth $2.8 billion over the term of the agreement, which replaces the existing contract signed with Delta in 2019 to purchase 10 mgy.
“Delta makes for a great customer, recognizing that big change is needed,” said Patrick R. Gruber, CEO of Gevo. “I also appreciate their faith in what we are doing at Gevo. Net-zero jet fuels matter. We expect production from our first Net-Zero plant to begin in 2025. To meet the demand that we now have under contract, we need to develop and build more than one Net-Zero plant. This is a happy problem to have.”
Kelly Nodzak, Delta’s director of global jet fuel procurement, added, “SAF is a critically important lever we have available today to help our industry reduce the lifecycle carbon emissions from aviation fuel. That’s why we are working to develop the market and a broader understanding of the effectiveness of SAF, which can reduce lifecycle emissions up to 80 percent when used in pure form compared to fossil jet fuels.”
Gevo has developed two alcohol-to-jet pathways that can utilize various low-carbon feedstocks. Gevo’s production processes are expected to incorporate renewable energy, including wind turbines, biogas, and combined heat and power systems (CHP) to increase efficiency and reduce carbon intensity to net-zero levels, which the customer can then pass on through the fuel.
Amelia DeLuca, Delta’s vice president of sustainability, said, “With the right policies and incentives in place, we can unlock a future where sustainable aviation fuel is a viable climate solution that benefits air travel and beyond.”