- Gevo Inc GEVO has established a new fuel sales agreement with American Airlines Group Inc. AAL for the sale of 100 million gallons per year of sustainable aviation fuel (SAF) for five years from its future commercial operations.
- Gevo's delivery of SAF is expected to begin in 2026. Gevo estimates that the agreement should generate ~$2.75 billion of revenue over the five-year term.
- This arrangement with American Airlines marks the single, largest fuel sales agreement ever entered by Gevo with a customer.
- This agreement falls under the purview of the MoU signed earlier in 2022, laying the groundwork for the 14 airlines in the alliance to purchase 200 million gallons of SAF per year from Gevo. American Airlines is a member of oneworld alliance.
- "We are creating a new business system, one that can generate revenue for Gevo and attractive investment returns while also solving problems that impact all of us," commented CEO Patrick R. Gruber.
- Price Action: GEVO shares are trading lower by 4.4% at $2.60 and AAL lower by 0.21% at $14.05 on the last check Friday.
- Photo Via Company
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