- Gevo Inc (NASDAQ:GEVO) has signed a "take-or-pay" agreement with Delta Air Lines, Inc. (NYSE:DAL) to supply 75 million gallons of sustainable aviation fuel (SAF) per year for seven years.
- Gevo estimates the agreement should generate ~$2.8 billion of revenue, inclusive of the value from environmental benefits, for the company over the seven-year term.
- This agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year.
- "We expect production from our first Net-Zero plant to begin in 2025. To meet the demand that we now have under contract, we need to develop and build more than one Net-Zero plant," commented Patrick R. Gruber, Ph.D., Gevo's CEO.
- Also Read: Boeing In Talks With Delta On Landmark Order: Reuters
- Price Action: DAL shares are trading higher by 2.78% at $37.09 and GEVO higher by 2.18% at $4.69 on the last check Tuesday.
