Gevo to Produce 375 Million Gallons of SAF Annually

The new agreements, worth about $2.3 billion in annual sales, will allow Gevo to ramp up infrastructure to meet demand, the company said.

Michael Wildes

Monday, October 10, 2022 at 03:24 PM ET

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The Lake Preston site was attractive because of its abundant, sustainable corn supply, high-protein feed demand, rail transportation, and renewable energy potential. [Courtesy: Gevo]

Key Takeaways:

Gevo has secured take-or-pay agreements with various partners, including major airlines, to supply approximately 375 million gallons of sustainable aviation fuel (SAF) annually, representing $2.3 billion in expected yearly sales.
The Inflation Reduction Act (IRA) is a significant boost for Gevo, providing a $1.25 per gallon tax credit for SAF producers meeting specific greenhouse gas reduction criteria, which is expected to increase project profitability.
Gevo has broken ground on its first major facility, Net-Zero 1 (NZ1), in South Dakota, aiming to produce 55 million gallons of SAF per year, and plans to build more such plants to meet its substantial supply agreements despite rising construction costs.

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Gevo (NASDAQ: GEVO), the renewable fuels company and major sustainable aviation fuel (SAF) producer, announced in an update that it now has agreements with multiple partners to deliver approximately 375 million gallons of SAF and other hydrocarbon fuel annually.

The take-or-pay agreements represent approximately $2.3 billion in expected annual sales, and will allow Gevo to ramp up infrastructure to meet demand.