Gevo and Future Energy Global Sign SAF Scope 1 and Scope 3 Voluntary Carbon Credit Offtake Agreement to Accelerate Book-and-Claim Market

Core Insights - Gevo, Inc. and Future Energy Global have signed a pioneering offtake agreement for carbon abatement attributes to help airlines and companies reduce CO2 emissions through Sustainable Aviation Fuel (SAF) [1][2] - The agreement involves the acquisition of Scope 1 and Scope 3 emissions credits from 10 million gallons per year of SAF produced at Gevo's ATJ-60 facility [1][2] - Gevo has secured a conditional loan guarantee of $1.63 billion from the U.S. Department of Energy to finance the construction of the ATJ-60 facility, which aims to produce 60 million gallons of SAF annually [2][3] Company Overview - Gevo is a diversified energy company focused on producing cost-effective, drop-in fuels that enhance energy security and reduce carbon emissions [6][7] - The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and has developed a carbon capture and sequestration facility [7] - Gevo's business model emphasizes job creation and community revitalization through the development and operation of production facilities [6][7] Industry Context - The aviation industry aims for net-zero CO2 emissions by 2050, with SAF expected to contribute approximately two-thirds of the necessary emissions reduction [3] - Current SAF production needs to scale more than 400-fold to meet industry targets, and SAF is not yet widely available at major airports [3][4] - The "Book and Claim" approach allows for the separation of emissions credits from physical fuel, facilitating a global SAF market and reducing transportation and storage costs [4][11] Future Energy Global's Role - Future Energy Global is focused on accelerating the SAF market by connecting investors, suppliers, and buyers, enhancing the business case for SAF production [5][10] - The company's innovative SAF pre-purchasing ecosystem aims to unlock capital flow into the SAF industry, benefiting all stakeholders [10][11] - FEG's collaboration with Gevo enhances the portfolio of Book and Claim solutions available to airlines and corporate customers, crucial for scaling SAF production [5][10]