June 22 (Renewables Now) - US renewable fuels producer Gevo Inc (NASDAQ:GEVO) has entered into a fuel sales agreement with Finnair (HEL:FIA1S) to supply 7 million gallons (26.5 million litres) per year of sustainable aviation fuel (SAF) to the Finnish airline for five years from 2027, the companies have announced.

The agreement, subject to Gevo building SAF plants, is expected to be worth USD 192 million (EUR 182m) over the five-year period, including the value of associated environmental benefits.

Finnair is a member of airline network Oneworld Alliance and the deal is part of a plan, unveiled earlier this year, for Oneworld Alliance to buy up to 200 million gallons of SAF per year from Gevo.

“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 of Finnair.

Gevo’s SAF is made from inedible corn products that are processed into ethanol and then into SAF.

(USD 1 = EUR 0.950)

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