Gevo and Future Energy Global Sign SAF Scope 1 and Scope 3 Voluntary Carbon Credit Offtake Agreement to Accelerate Book-and-Claim Market
Gevo (NASDAQ: GEVO) and Future Energy Global (FEG) have signed a multi-year offtake agreement for carbon abatement attributes from Sustainable Aviation Fuel (SAF). Under the agreement, FEG will acquire Scope 1 and Scope 3 emissions credits from 10 million gallons per year of fuel from Gevo's planned ATJ-60 facility.
The agreement is expected to support financing for Gevo's ATJ-60 facility construction, which has secured a $1.63 billion conditional loan guarantee from the U.S. Department of Energy. The Lake Preston, South Dakota facility is designed to produce 60 million gallons of SAF annually at costs comparable to conventional jet fuel but with lower carbon emissions.
The 'Book and Claim' approach separates environmental attributes from physical fuel, reducing transportation costs and enabling a global SAF market. This agreement helps address the aviation industry's goal of net-zero CO2 emissions by 2050, where SAF is expected to contribute approximately two-thirds of necessary emissions reductions.
Gevo (NASDAQ: GEVO) e Future Energy Global (FEG) hanno firmato un accordo di acquisto pluriennale per le attribuzioni di riduzione delle emissioni di carbonio derivanti dal Sustainable Aviation Fuel (SAF). In base all'accordo, FEG acquisirà crediti di emissione Scope 1 e Scope 3 da 10 milioni di galloni all'anno di carburante dalla prevista struttura ATJ-60 di Gevo.
L'accordo dovrebbe supportare il finanziamento per la costruzione della struttura ATJ-60 di Gevo, che ha ottenuto una garanzia di prestito condizionale di 1,63 miliardi di dollari dal Dipartimento dell'Energia degli Stati Uniti. La struttura di Lake Preston, nel Dakota del Sud, è progettata per produrre 60 milioni di galloni di SAF all'anno a costi comparabili a quelli del carburante per aerei convenzionale, ma con emissioni di carbonio inferiori.
Il metodo 'Book and Claim' separa le attribuzioni ambientali dal carburante fisico, riducendo i costi di trasporto e consentendo un mercato globale del SAF. Questo accordo aiuta a raggiungere l'obiettivo dell'industria aerea di emissioni nette di CO2 pari a zero entro il 2050, dove si prevede che il SAF contribuisca a circa due terzi delle necessarie riduzioni delle emissioni.
Gevo (NASDAQ: GEVO) y Future Energy Global (FEG) han firmado un acuerdo de compra a largo plazo para los atributos de reducción de carbono del Sustainable Aviation Fuel (SAF). Según el acuerdo, FEG adquirirá créditos de emisiones Scope 1 y Scope 3 de 10 millones de galones al año de combustible de la planta ATJ-60 planificada de Gevo.
Se espera que el acuerdo respalde el financiamiento para la construcción de la planta ATJ-60 de Gevo, que ha asegurado una garantía de préstamo condicional de 1.63 mil millones de dólares del Departamento de Energía de EE. UU. La planta en Lake Preston, Dakota del Sur, está diseñada para producir 60 millones de galones de SAF anualmente a costos comparables con los del combustible de avión convencional, pero con menores emisiones de carbono.
El enfoque 'Book and Claim' separa los atributos ambientales del combustible físico, reduciendo los costos de transporte y permitiendo un mercado global de SAF. Este acuerdo ayuda a abordar el objetivo de la industria de la aviación de alcanzar emisiones netas de CO2 cero para 2050, donde se espera que el SAF contribuya aproximadamente con dos tercios de las reducciones necesarias de emisiones.
Gevo (NASDAQ: GEVO)와 Future Energy Global (FEG)은 지속 가능한 항공 연료(SAF)에서 탄소 감축 속성을 위한 다년간의 구매 계약을 체결했습니다. 이 계약에 따라 FEG는 Gevo의 계획된 ATJ-60 시설에서 연간 1000만 갤런의 연료에 대한 Scope 1 및 Scope 3 배출권을 확보하게 됩니다.
이 계약은 Gevo의 ATJ-60 시설 건설을 위한 자금 조달을 지원할 것으로 예상되며, 이 시설은 미국 에너지부로부터 16억 3천만 달러의 조건부 대출 보증을 확보했습니다. 사우스다코타주 레이크 프레스트 지역의 이 시설은 연간 6000만 갤런의 SAF를 생산할 수 있도록 설계되었으며, 전통적인 항공 연료와 유사한 비용으로 제공되지만 탄소 배출량은 더 낮습니다.
'Book and Claim' 접근 방식은 환경 속성을 물리적 연료와 분리하여 운송 비용을 줄이고 전 세계 SAF 시장을 가능하게 합니다. 이 계약은 2050년까지 항공 산업의 CO2 배출량 제로 목표를 달성하는 데 기여하며, SAF가 필요한 배출량 감소의 약 3분의 2를 차지할 것으로 예상됩니다.
Gevo (NASDAQ: GEVO) et Future Energy Global (FEG) ont signé un accord d'achat pluriannuel pour les attributs de réduction des émissions de carbone issus du Sustainable Aviation Fuel (SAF). En vertu de cet accord, FEG acquerra des crédits d'émissions Scope 1 et Scope 3 provenant de 10 millions de gallons de carburant par an de l'installation ATJ-60 prévue par Gevo.
L'accord devrait soutenir le financement de la construction de l'installation ATJ-60 de Gevo, qui a obtenu une garantie de prêt conditionnelle de 1,63 milliard de dollars du Département de l'Énergie des États-Unis. L'installation de Lake Preston, dans le Dakota du Sud, est conçue pour produire 60 millions de gallons de SAF par an à des coûts comparables à ceux du carburant d'aviation conventionnel, mais avec des émissions de carbone plus faibles.
L'approche 'Book and Claim' sépare les attributs environnementaux du carburant physique, réduisant les coûts de transport et permettant un marché mondial du SAF. Cet accord contribue à atteindre l'objectif de l'industrie aéronautique d'atteindre des émissions nettes de CO2 nulles d'ici 2050, où l'on s'attend à ce que le SAF contribue à environ deux tiers des réductions d'émissions nécessaires.
Gevo (NASDAQ: GEVO) und Future Energy Global (FEG) haben einen mehrjährigen Abnahmevertrag für die Kohlenstoffminderungsattribute von Sustainable Aviation Fuel (SAF) unterzeichnet. Im Rahmen des Vertrags wird FEG Emissionsgutschriften der Kategorien Scope 1 und Scope 3 aus 10 Millionen Gallonen Kraftstoff pro Jahr von Gevos geplanter ATJ-60-Anlage erwerben.
Der Vertrag wird voraussichtlich die Finanzierung für den Bau der ATJ-60-Anlage von Gevo unterstützen, die eine 1,63 Milliarden Dollar bedingte Kreditgarantie des US-Energieministeriums erhalten hat. Die Anlage in Lake Preston, South Dakota, ist so konzipiert, dass sie jährlich 60 Millionen Gallonen SAF produziert und dabei Kosten hat, die mit denen von herkömmlichem Flugbenzin vergleichbar sind, jedoch mit niedrigeren Kohlenstoffemissionen.
Der 'Book and Claim'-Ansatz trennt Umweltattribute vom physischen Kraftstoff, reduziert die Transportkosten und ermöglicht einen globalen SAF-Markt. Dieser Vertrag hilft, das Ziel der Luftfahrtindustrie zu erreichen, bis 2050 Netto-CO2-Emissionen von null zu erreichen, wobei erwartet wird, dass SAF etwa zwei Drittel der notwendigen Emissionsreduzierungen beiträgt.
- Secured $1.63B DOE loan guarantee commitment for ATJ-60 facility
- Multi-year offtake agreement for 10M gallons/year with expansion option
- ATJ-60 facility designed to produce SAF at costs similar to conventional jet fuel
- Agreement expected to enable facility construction financing
- Facility not yet constructed - future revenue dependent on completion
- Production and financial projections are forward-looking with no guarantee of success
Insights
This offtake agreement marks a significant milestone for Gevo's business model, directly enabling financing for its ATJ-60 facility capable of producing 60 million gallons of SAF annually. The deal secures demand for carbon credits from 10 million gallons per year with expansion options, creating a predictable revenue stream that enhances Gevo's project financing prospects.
What's particularly noteworthy is how this agreement aligns with Gevo's $1.63 billion DOE loan guarantee commitment, potentially unlocking the capital stack needed for construction in Lake Preston, South Dakota. By separating environmental attributes from physical fuel through the Book-and-Claim model, Gevo can monetize carbon benefits without geography constraints, improving the economics for its SAF production.
The agreement essentially creates a secondary market for Gevo's products beyond the physical fuel - selling both Scope 1 credits to airlines and Scope 3 credits to corporations paying to offset business travel emissions. This dual revenue model enhances financial stability and creates price predictability that traditional fuel contracts might lack.
While the financial terms aren't disclosed, this agreement represents a crucial step in Gevo's transition from development to commercial operations. It reduces project financing risk by securing partial offtake for the facility's 60 million gallon annual capacity, potentially improving both debt and equity financing terms as Gevo approaches financial investment decision on the ATJ-60 project.
This agreement establishes a critical financing mechanism for Gevo by creating a structured offtake channel for its carbon credits, effectively transforming environmental attributes into bankable assets. By securing demand for credits from 10 million gallons of its planned 60 million gallon production capacity, Gevo gains financial predictability that directly supports project financing.
The Book-and-Claim structure is particularly ingenious from a financial engineering perspective. It eliminates costly logistics of physical SAF distribution while creating two distinct revenue streams - Scope 1 credits for airlines and Scope 3 credits for corporate travel emissions. This unbundling increases market liquidity and price discovery for SAF environmental attributes.
Critically, this agreement helps satisfy conditions for Gevo's $1.63 billion DOE loan guarantee, likely addressing offtake requirements that lenders demand. For project finance, having predictable revenue through offtake agreements typically reduces the weighted average cost of capital by lowering the risk premium demanded by both debt and equity providers.
The corporate angle shouldn't be overlooked - as companies face increasing pressure to address Scope 3 emissions (especially business travel), this creates a growing buyer pool for Gevo's environmental attributes. While the deal represents approximately 17% of the ATJ-60 facility's planned capacity, establishing the commercial framework sets the stage for similar agreements that could secure demand for the remaining production volume.
ENGLEWOOD, Colo., April 09, 2025 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ: GEVO) and Future Energy Global (FEG) are pleased to announce that they 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 enable Gevo’s financing of the construction of its ATJ-60 facility. Gevo has secured a loan guarantee conditional commitment of
The aviation industry has targeted net-zero CO2 emissions by 2050, and SAF is expected to contribute around two thirds of the necessary emissions reduction, but to achieve this, its production quantities need to scale more than 400-fold. SAF is not yet available at all major airports worldwide so FEG provides SAF-derived Scope 1 credits to airlines who wish to buy additional SAF but who cannot easily source the physical fuel at their own airports. Similarly, when companies purchase and retire SAF-derived Scope 3 credits to compensate for their business travel emissions, they mitigate the added cost of SAF to airlines and thus enable the faster scale-up of SAF production.
The Greenhouse Gas Protocol defines different “scopes” of responsibility for emissions. The emissions from a flight fall under an airline’s direct responsibility (i.e., Scope 1), but a company with staff flying for business on that flight is responsible for its staff’s share of the flight’s emissions (i.e., Scope 3 or indirect emissions). Separating the Scope 1 and Scope 3 attributes from the physical fuel, an approach known as “Book and Claim,” reduces fuel transportation and storage costs and carbon emissions, and unlocks a global SAF market both for airlines and for indirect aviation fuel customers around the world who are seeking to mitigate their emissions.
“Gevo has always planned to leverage SAF market economics to scale our business, and a Book and Claim market that enables the trading of SAF environmental attributes can accelerate SAF production even faster,” says Dr. Patrick R. Gruber, CEO of Gevo. “Future Energy Global is building just such a market, spanning corporate customers, airlines, and aircraft lessors. Aircraft lessors own about half of all commercial aircraft worldwide, and Book and Claim is a critical enabler to allow them and their airline customers to adopt SAF faster.”
“FEG’s collaboration with Gevo strongly enhances the portfolio of Book and Claim solutions we can offer our airlines, our lessors and our corporate customers,” says Natasha Mann, CEO and Co-Founder of FEG. “It’s crucial to scale SAF production, and our business model lets us unlock the capital to do so. We’re impressed with Gevo’s pipeline, which combines technology ready for today’s market and additional technologies far along in development that could increase production efficiency and accelerate the trajectory of SAF scaling.”
FEG’s unique business model brings together investors, suppliers, and buyers to help accelerate and scale SAF production globally. FEG generates additional revenue streams by commercializing the carbon credits which SAF provides, enhancing the business case for faster production scale-up. FEG’s offtake agreement with Gevo is expected to fulfill a market need by giving buyers access to SAF credits at predictable prices, while providing financial commitments and revenue certainty that are expected to allow suppliers like Gevo to expand. FEG’s initial focus has been on aviation, though its sustainable-fuel credit solutions span the transport spectrum, including marine and land transport.
About Gevo
Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including SAF, motor fuels, chemicals, and other materials that provide U.S.-made solutions. By investing in the backbone of rural America, Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States, turning by-products into clean, reliable energy. We also operate an ethanol plant with an adjacent carbon capture and sequestration (“CCS”) facility, further solidifying America’s leadership in energy innovation. Additionally, Gevo owns the world’s first production facility for specialty ATJ fuels and chemicals. Gevo’s market-driven “pay for performance” approach regarding carbon and other sustainability attributes, helps ensure value is delivered to our local economy. Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in tracking, measuring and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market.
For more information, see www.gevo.com.
About Future Energy Global
Future Energy Global, headquartered in Dublin, Ireland and with staff in Europe and North America, is a pioneering SAF market accelerator.
Through its innovative SAF pre-purchasing ecosystem, Future Energy Global accelerates the flow of capital into the SAF industry, operating at the intersection of investors, suppliers, and buyers, and bringing benefits to all parties, and ultimately also to the environment. FEG’s activities are guided by three core values: visionary independence, collaborative energy and sustainable ethos.
FEG’s initial focus has been on aviation, though our sustainable-fuel credit solutions span the transport spectrum, including marine and land transport.
Future Energy Global is backed by Aviation Partners, the world leader in advanced winglet technology which has already saved more than 140 million tons of aviation CO2 emissions.
For more information, see fe.global
About Book and Claim
Book and Claim is a well-established structure for accounting for environmental attributes and has been in use for many years in markets such as renewable electricity generation, where individual electrons cannot be tracked through the grid. Book and Claim systems overcome this challenge by allowing renewable electricity providers to “book” the electricity they supply to the grid, while customers can “claim” the renewable electricity they have bought, whether or not they physically receive the renewable electrons. Book and Claim systems, whether in renewable electricity or in SAF, rely on robust tracking and accounting procedures to ensure that environmental credits are counted only once.
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, Future Energy Global and its business system, Gevo’s ATJ-60 project and the financing thereof, the markets for SAF and associated environmental attributes, and other statements that are not purely statements of historical fact. These forward-looking statements are made based on 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, 2024 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.
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PR@gevo.com
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FAQ
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