Gevo Seals SAF Offtake With FEG, Backed By DOE Loan And Net-Zero Industry Momentum

Gevo, Inc. GEVO announced Wednesday that it has entered a multi-year offtake agreement with Future Energy Global (FEG) to supply carbon abatement credits tied to 10 million gallons per year of sustainable aviation fuel (SAF).

The agreement enables airlines and corporations to reduce their Scope 1 and Scope 3 emissions. The deal includes an option for FEG to increase the offtake volume in the future.

The deal is expected to support Gevo's financing of its ATJ-60 production facility in Lake Preston, South Dakota. Backed by a $1.63 billion conditional loan guarantee from the U.S. Department of Energy and equity from project-level investors, the plant is designed to produce 60 million gallons of low-emission SAF annually at a cost comparable to conventional jet fuel.

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With global aviation targeting net-zero emissions by 2050—and SAF projected to deliver two-thirds of the required reductions—production must scale over 400-fold. FEG addresses this challenge by offering SAF-derived Scope 1 and Scope 3 credits to buyers who can't access physical fuel, using a "Book and Claim" model that separates environmental attributes from fuel logistics to reduce costs and emissions.

Gevo CEO Dr. Patrick Gruber emphasized that a functional Book and Claim market can help unlock faster SAF adoption, including for aircraft lessors who own nearly half the global commercial fleet.

By commercializing SAF-related carbon credits and offering predictable pricing, FEG's business model helps bridge financing gaps, enabling suppliers like Gevo to expand more rapidly. While its initial focus is aviation, FEG's credit solutions extend to the marine and land transport sectors.

Price Action: GEVO shares are trading lower by 0.98% at $1.01 at the last check Wednesday.

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