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 to deliver approximately 375 million gallons of sustainable aviation fuel (SAF) and other fuels annually, representing $2.3 billion in expected sales with major airlines and oil companies.
The Inflation Reduction Act (IRA) is a "game-changer" for Gevo, providing a $1.25 per gallon tax credit for SAF, which significantly increases the company's projected earnings from its production facilities.
Gevo has begun construction on its Net-Zero 1 (NZ1) facility in South Dakota, targeting 55 million gallons of SAF production annually, with plans to build multiple plants to fulfill its growing customer agreements.

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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.