SAS
SAS aims to reduce total carbon emissions by 25% by 2025. Credit: Alan Wilson via Flickr.

Renewable chemicals and advanced biofuels company Gevo and Scandinavian Airlines System (SAS) have amended their original fuel sales agreement.

Signed in 2019, the original agreement required Gevo to produce and supply sustainable aviation fuel (SAF) from its expanded plant in Luverne, Minnesota.

Post-amendment, the value of the fuel sales agreement is estimated to be more than $100m.

Under the amended agreement, SAS’s minimum SAF purchase obligation will increase to 5,000,000gal a year.

Gevo expects to supply SAS with SAF beginning in 2024 from Gevo’s Net-Zero 2 Project.

The Net-Zero 1 project is expected to be constructed in Lake Preston, South Dakota.

The production facilities will use renewable energy and Gevo’s proprietary technology to develop energy-dense liquid hydrocarbons.

Gevo chief executive officer Patrick Gruber said: “With this amendment, SAS has significantly increased the amount of SAF that it is willing to purchase from Gevo. This amendment is evidence of the strong and growing demand for Gevo’s renewable hydrocarbon products. We expect to ink additional offtake agreements later this year.

“SAS have a vision and plan that they are executing, even in spite of the global pandemic. This additional volume will help Gevo grow its business and hopefully accelerate making real Gevo’s Net-Zero 2 plant.”

The agreement is in line with SAS’ transformation toward more sustainable aviation. It aims to reduce its’ climate affecting emissions by 25% in 2030.