Gevo and Dublin-based Future Energy Global (FEG) have signed a breakthrough offtake agreement that supports airlines and other companies in slashing their carbon footprints. Under this multi-year deal, FEG will buy Scope 1 and Scope 3 carbon abatement credits tied to 10 million gallons per year of Gevo’s Sustainable Aviation Fuel (SAF) from its upcoming ATJ-60 facility.
This deal also gives FEG the option to expand its SAF purchase volume later. This will help airlines and corporations meet net-zero targets more quickly.
Dr. Patrick R. Gruber, CEO of Gevo said,
“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. 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.”
Gevo’s ATJ-60 Plant Set to Take Off with 60M Gallons of Low-Carbon SAF
EIA revealed that at the beginning of 2024, the U.S. SAF production capacity was only around 2,000 b/d.
Now, as per the press release, Gevo’s new ATJ-60 plant in Lake Preston, South Dakota, will produce 60 million gallons of SAF annually, which will significantly suffice the demand.
The cost will be comparable to conventional jet fuel, but the fuel will have much lower emissions. The project received a $1.63 billion conditional loan guarantee from the U.S. Department of Energy, which will help finance the construction of the ATJ-60 plant and speed up operations.
Key highlights of ATJ-60:
Gevo’s proprietary tech and “pay-for-performance” model reward emissions reductions. Through its Verity platform, the company ensures full transparency and accountability across the SAF supply chain. Additionally, the company rewards low-carbon practices while delivering real value to local communities.
Paving the Way for a Low-Carbon Future
Gevo is a pioneer of low-carbon fuels and chemicals from renewable sources. Its advanced technology creates Sustainable Aviation Fuel (SAF), motor fuels, and eco-friendly materials that work with existing engines and infrastructure. It ensures an easy switch from fossil fuels.
Thus, cutting carbon emissions through renewable fuels and chemicals is their top priority. The company operates one of the largest dairy-based renewable natural gas facilities in the U.S. and an ethanol plant equipped with carbon capture technology.
Future Energy Global (FEG) Boosts Europe’s Aviation Decarbonization with SAF Credits
FEG’s business model connects investors, suppliers, and buyers to enhance sustainable aviation fuel production worldwide. By monetizing carbon credits tied to SAF, FEG creates extra revenue streams that boost the scale-up.
Natasha Mann, CEO and Co-Founder of FEG, noted,
“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. 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.”
To accelerate Europe’s aviation decarbonization, FEG supports Electro-based Sustainable Aviation Fuel or E-SAF. It’s a scalable, very low carbon, and drop-in fuel option with greater potential than many bio-based alternatives. On April 10, FEG became one of the first signatories of the Bodø Declaration, uniting airlines, tech firms, airports, and policymakers to push for climate-neutral aviation.
The Declaration urges:
- Long-term SAF regulations through 2050 to unlock investments
- Market incentives like the EU ETS to encourage fossil fuel shifts
- Support for long-term offtake deals between producers and users
- A Europe-wide book & claim system to maximize emission cuts
Last month, FEG signed a deal to supply Microsoft with Scope 3 SAF certificates from airline purchases. This is part of Microsoft’s ambition to be net-zero by 2030.
How SAF Credits Help Airlines and Corporates Cut CO2
The aviation industry is aiming for net-zero carbon emissions by 2050. SAF is expected to deliver two-thirds of the required emission cuts. This means that SAF production has to increase by 400 times. But SAF is not available everywhere. That’s where FEG comes in.
Through this deal, FEG will distribute SAF-derived Scope 1 credits to airlines unable to access physical SAF at their home airports. Corporates can also purchase Scope 3 credits to offset emissions from employee business travel. This “Book and Claim” approach separates fuel from its carbon savings, lowering logistics costs and unlocking access to global SAF markets.
Scope 1 means direct emissions from airline operations, and Scope 3 is indirect emissions from corporate air travel.
Annual SAF demand range over the main and accelerated cases compared with capacity potential, 2020-2026
This is how FEG amplifies SAF demand by turning carbon credits into revenue. This gives producers like Gevo a steady income and helps buyers attain their climate targets. Though FEG started with aviation, it now offers sustainable fuel credit solutions for land and marine transport as well.
