US-headed sustainable fuels developer Gevo, Inc has announced a new sustainable aviation fuel (SAF) sales agreement with Spanish national air carrier Iberia L.A.E. S.A (IBERIA) whereby Gevo provides IBERIA with six million (US) gallons (≈ 27 million litres) per year of SAF for five years from Gevo’s future commercial operations.
Headquartered in Madrid, Spain, IBERIA operates an international flight network through its Madrid-Barajas Airport (MAD) hub. As part of the International Airlines Group (IAG), the airline is committed to achieving net-zero carbon emissions by 2050, with a 10 percent implementation of SAF by 2030.
According to Gevo, IBERIA expects to commence fueling its aircraft with SAF from Gevo in 2028. The expected value for the agreement is deemed to be US$165 million over the five-year period, inclusive of the value from environmental benefits for Gevo.
Gevo continues to pursue its stated goal of producing and commercializing one billion gallons (3.78 billion litres) of SAF by 2030.
By using the Argonne Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model to provide a lifecycle inventory of carbon, Gevo has a business model designed to reduce greenhouse gas (GHG) emissions to net zero over the entire lifecycle of each gallon of advanced renewable fuel (including its SAF), which includes the emissions resulting from burning the fuel in engines to power transportation.
The agreement with IBERIA further increases Gevo’s global impact by adding to its range of airline partners.
We are excited to welcome another member of IAG to Gevo’s SAF customer roster. The growth of the offtake agreements that we are seeing for SAF reinforces that airlines are ready to make an immediate impact and reduce their carbon intensity. With these commitments, we have no doubt that Gevo can help them achieve their sustainability targets, said Dr Patrick R. Gruber, CEO of Gevo.
The utilization of SAF is one of the key opportunities for IBERIA to reach its ambitious climate change goals.
The airline focuses on a four-pronged sustainability strategy: the green transition of the aviation sector, a more sustainable travel experience for its customers, turning employees into ambassadors of its sustainability strategy, and the commitment to society.
SAF is the best solution to advance the decarbonization of the aviation sector, which will reduce emissions alongside other technology solutions as they are developed. This agreement with Gevo is part of our commitment to achieving net zero emissions by 2050, and also part of the investment being made by the entire aviation sector toward the industry’s green transition. This is a global challenge that must be addressed globally and requires as much public-private collaboration as possible, commented Teresa Parejo, Sustainability Director from IBERIA.
