Gevo, Inc. and Future Energy Global agree offtake agreement for carbon abatement attributes

In Colorado, Gevo, Inc. and Future Energy Global (FEG) have signed a pioneering offtake agreement for carbon abatement attributes, to enable airlines and other companies to reduce their CO2 emissions through Sustainable Aviation Fuel (SAF). Under the multi-year agreement, FEG will acquire from Gevo the Scope 1 and Scope 3 emissions credits from 10 million gallons per year of fuel to be produced at Gevo’s alcohol-to-jet (ATJ) SAF production facility, Gevo ATJ-60, to meet demand from FEG customers, both airlines and corporates, seeking to decarbonize their operations. The agreement also includes an option for FEG to increase the off-take at a later date.

This agreement is expected to help enable Gevo’s financing of the construction of its ATJ-60 facility. Gevo has secured a loan guarantee conditional commitment of $1.63 billion (including capitalized interest during construction) from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) and is originating equity from project level capital providers. Under development in Lake Preston, South Dakota, ATJ-60 is designed to address the market need for cost-effective jet fuel while abating carbon and to respond to growing worldwide demand for SAF. Gevo’s proprietary plant design is expected to be able to produce 60 million gallons of SAF per year at similar production costs to conventional jet fuel, but with far lower carbon emissions.