Gevo Inc (NASDAQ:GEVO) shares are trading higher by 6.6% at $4.89 after the company signed a "take-or-pay" agreement with Delta Air Lines, Inc. (NYSE:DAL) to supply 75 million gallons of sustainable aviation fuel per year for seven years.
Gevo says the agreement replaces the existing agreement signed with Delta in 2019 to purchase 10 million gallons per year and bolsters Delta's commitment to incorporating SAF into its operations.
"On behalf of the entire team at Gevo, I want to congratulate our partners at Delta for their leadership in continuously pushing the aviation industry towards net-zero emissions. Delta makes for a great customer, recognizing that big change is needed," said Patrick R. Gruber, Ph.D., Gevo's Chief Executive Officer.
Gruber also noted "I appreciate their faith in what we are doing at Gevo. Net-zero jet fuels matter. 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. This is a happy problem to have."
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Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks.
Gevo has a 52-week high of $10.38 and a 52-week low of $2.79.
