Gevo, Inc. has announced a new fuel deal with International Airlines Group-owned Aer Lingus (IAG), a press release states.
According to the agreement, Aer Lingus will buy 6.3 million gallons of sustainable aviation fuel (SAF) annually from Gevo’s future commercial activities for five years. In 2026, Aer Lingus plans to start supplying SAF from Gevo to its aircraft.
With the value from Gevo’s environmental benefits included, the predicted value of the agreement is estimated to be $173 million.
Aer Lingus, the Irish national airline, has committed to achieving net-zero carbon emissions by 2050 and to utilizing sustainable aviation fuel (SAF) on 10% of its flights by 2030. In order for the airline to achieve its goals, the use of SAF as a renewable fuel source is crucial, the company said.
By 2030, Gevo aims to generate and commercialize 1 billion gallons of SAF. Gevo has a business model created to reduce greenhouse gas emissions to net-zero over the full lifespan of every gallon of advanced renewable fuel, including its SAF. That also includes the emissions brought on by burning the fuel in engines to power transportation.
Gevo’s global impact is boosted by the deal with Aer Lingus by expanding its network of airline partners.
“Gevo’s sustainable aviation fuel delivers renewable energy to a transportation sector that is actively seeking to reduce its carbon intensity,” Gevo’s Chief Executive Officer Dr. Patrick R. Gruber said.
“Because our fuel is fungible and drop-in ready, it’s expected to have an immediate impact to help our partner airlines achieve their sustainability targets ahead of schedule.”
Fleet upgrade also on the agenda
The upgrading of its fleet is a key component of Aer Lingus’ sustainability initiative, according to the press release. The Irish national airline recently made investments in newer, more fuel-efficient aircraft like the Airbus A321neo. Aer Lingus intends to modernize much more with A321neo XLR and A32neo aircraft.
“This agreement with Gevo marks an exciting and critical step on our journey to net-zero carbon emissions and underlines our commitment to powering 10% of flights using sustainable aviation fuel by 2030. The sustainable aviation fuel produced by Gevo will be used to power our flights from Los Angeles and San Francisco and, from 2026, 50% of fuel purchased by Aer Lingus from California will be sustainable aviation fuel,” CEO of Aer Lingus, Lynne Embleton stated about the fuel supply deal.
The agreement with Aer Lingus is subject to a number of conditions, one of which is that Gevo must conceive, finance, and build one or more production facilities in order to create the SAF envisioned by the Agreement, the press release concludes.
Gevo is a member of the Biotechnology Innovation Organization (BIO).