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Sustainable Aviation Fuel

Finnair enters SAF deal with Gevo

Finnair enters SAF deal with Gevo
Finnish national air carrier, and oneworld Alliance member, Finnair has signed a sustainable aviation fuel (SAF) offtake agreement with Gevo Inc.

US-headed biofuels- and biochemicals producer and process developer Gevo Inc., has announced a new sustainable aviation fuel (SAF) sales agreement with Finnish national air carrier and oneworld Alliance member, Finnair.

The offtake agreement outlines the details for the purchase of 7 million (US) gallons (≈ 26.5 million litres) per annum of SAF for five years from Gevo’s commercial operations.

Deliveries of the SAF by Gevo are expected to begin in 2027. The expected value for the agreement is approximately US$192 million over the five-year period, inclusive of the value from environmental benefits for Gevo.

The agreement with Finnair is subject to certain conditions precedent, including Gevo developing, financing, and constructing one or more production facilities to produce the SAF contemplated by the agreement.

Part of oneworld Alliance supply agreement

Finnair is a member of oneworld Alliance, and this agreement falls under the purview of a Memorandum of Understanding (MoU) that oneworld and Gevo signed earlier this year.

The oneworld Alliance agreement lays the groundwork for the 14 world-class airlines in the Alliance to purchase 200 million gallons (≈ 757 million litres) of SAF per year, from Gevo’s commercial operations.

The agreement with Finnair will broaden Gevo’s range of airline partners and grow its global footprint with its sustainable fuel products.

Furthermore, it supports the company’s stated goal of producing and commercializing a billion gallons (≈ 3.8 billion litres) of SAF by 2030.

Gevo was founded on the principle of building sustainability in every step of our process. But it is not static—it’s always improving: We’re constantly incorporating new developments at every stage of our business system to reduce our carbon intensity, said Dr Patrick R. Gruber, CEO of Gevo.

This is expected to make the renewable energy carried in our advanced renewable fuels even more impactful as they help to lower our customers’ carbon scores, Dr Gruber said.

Finnair uses an extensive toolkit to achieve emission reductions – using sustainable aviation fuels, reducing the weight of aircraft, developing fuel-efficient flight methods, offsetting, and engaging customers in reducing aviation emissions.

Finnair is also actively exploring the possibilities of introducing new technologies into its operations.

Finnair has ambitious emissions reduction targets: by the end of 2025, we intend to halve the level of net emissions from 2019 and achieve carbon neutrality latest by the end of 2045. SAF plays an important role for reaching these targets, said Eveliina Huurre, SVP Sustainability at Finnair.

Gevo’s process is designed to create multiple efficiencies by allowing the same acre of farmland to produce SAF from corn using atmospheric carbon while simultaneously adding high-value nutritional products to the food chain.

Finnair knows the future will be built on renewable energy, and our SAF delivers renewable energy in a drop-in fuel that is expected to make an impact right away. Because it is fungible, this SAF is expected to reduce the carbon intensity in any flight proportional to the blend used to fill up the aircraft, Dr Gruber said.

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