Gevo Inc., in partnership with Future Energy Global (FEG), has signed a multi-year agreement to supply carbon abatement credits derived from sustainable aviation fuel (SAF). The deal enables airlines and corporations to reduce CO2 emissions by accessing Scope 1 and Scope 3 credits from 10 million gallons of SAF annually, produced at Gevo’s alcohol-to-jet (ATJ) facility, ATJ-60, located in Lake Preston, South Dakota. The agreement includes an option for FEG to increase its credit purchases in the future, supporting customers aiming to lower their carbon footprint.

The partnership supports Gevo’s efforts to finance the ATJ-60 facility, which has secured a $1.63 billion loan guarantee commitment from the U.S. Department of Energy’s Loan Programs Office, alongside equity from project investors. Designed to produce 60 million gallons of SAF yearly, the facility aims to offer a cost-competitive alternative to conventional jet fuel while significantly reducing emissions. This aligns with the aviation industry’s goal of achieving net-zero CO2 emissions by 2050, with SAF expected to account for a substantial portion of the required reductions.

To meet global SAF demand, production must increase dramatically. Since SAF is not yet widely available at major airports, FEG’s “Book and Claim” model allows airlines to access Scope 1 credits and companies to purchase Scope 3 credits for business travel emissions. This approach separates environmental attributes from physical fuel, reducing transportation costs and emissions while enabling a global SAF market. Scope 1 covers direct airline emissions, while Scope 3 addresses indirect emissions from corporate travel.

Patrick R. Gruber, CEO of Gevo, emphasized the agreement’s impact: “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.” Natasha Mann, CEO and co-founder of FEG, added: “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.”

FEG’s business model connects investors, suppliers, and buyers to scale SAF production. By monetizing carbon credits, FEG strengthens the financial case for expanding SAF facilities. The agreement with Gevo ensures predictable pricing for buyers and revenue stability for producers, fostering growth in sustainable fuel markets. While focused on aviation, FEG’s solutions also extend to marine and land transport, addressing broader transportation emissions.