“Long-term investments such as our agreement with Gevo are critical to Delta`s goal of reducing our carbon footprint while planning for a more sustainable future,” said Graeme Burnett, senior vice president of fuel management at Delta Air Lines. “Fuel is an airline`s biggest impact and therefore offers our biggest opportunity to offer solutions that care about the planet.” The proposed investment is subject to the negotiation of definitive agreements with customary closing conditions, including regulatory approval. For more information on the letter of intent between Gevo and Chevron U.S.A., please refer to gevo`s most recent report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 9, 2021. The fuel supply contract with Kolmar is subject to certain important conditions. A copy of the fuel supply agreement with Kolmar has been submitted to the United States. Securities and Exchange Commission filed on Form 8-K. Gevo plans to supply Kolmar with 45 MGPY of renewable fuels from its Net Zero 2 plant, which is currently under development in the U.S. Midwest. Deliveries to Kolmar would represent the overall performance of the plant according to the current net-Zero 2 design. Under the fuel supply agreement, Net-Zero 2 is expected to generate approximately $300 million in gross revenues per year, including revenues from environmental benefits. With the sale of corn oil protein and by-products, it is estimated that Net-Zero 2 will generate gross sales of approximately $350 million per year. Over the eight years of the agreement, net zero 2 all-inclusive gross sales are estimated at $2.8 billion, including renewable fuels and related products for the food chain.
“With this agreement, Kolmar is investing in the future, and this type of foresight is another great partner and should make our investors understand that we have traction in the market,” said Patrick R. Gruber, CEO of Gevo. “We have great potential in our business system to reinvent what is possible. Our system translates well because we actively address food safety with the high-quality nutritional products that our process simultaneously generates in the production of our advanced renewable fuels. Both products come from the same area of arable land and contribute to our environmental benefits. Gevo markets the next generation of gasoline, kerosene and diesel fuel with the potential to achieve zero carbon emissions and meet market needs to reduce greenhouse gas emissions with sustainable alternatives. Gevo uses low-carbon carbohydrates based on renewable resources as raw materials and is at an advanced stage in the development of renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with significantly reduced carbon intensity (the level of greenhouse gas emissions compared to fossil fuels standard oil-based throughout their life cycle). Gevo`s products perform as well or better than traditional fossil fuels in infrastructure and engines, but with significantly reduced greenhouse gas emissions. In addition to solving fuel problems, Gevo`s technology also allows the production of certain plastics, such as polyester, with more sustainable ingredients. Gevo`s ability to penetrate the growing market for low-carbon fuels depends on the price of oil and the value of the decrease in carbon emissions, which would otherwise increase greenhouse gas emissions.
Gevo believes that its proven and patented technology, which enables the use of a variety of sustainable, low-carbon raw materials to produce low-carbon products at competitive prices such as gasoline components, kerosene and diesel fuel, has the potential to generate project and business returns that justify the expansion of a multi-billion dollar company. For more information, see www.gevo.com. Delta`s agreement with Gevo complements the airline`s recent $2 million investment in Northwest Advanced Bio-fuels, LLC for the feasibility study of a sustainable aviation fuel and other biofuel products production plant in Washington State. The airline`s investment in sustainable fuel is just one example of Delta`s work to positively impact the environment, maintain its commitment to climate-neutral growth and reduce emissions by 50% by 2050. Gevo Inc. has a new partner: Kolmar Americas Inc. Kolmar and Gevo have entered into a viable fuel supply agreement for 45 million gallons per year (on an own basis) of renewable and high-energy liquid hydrocarbons that are expected to be produced from Gevo`s second net-zero generation facility, Net-Zero 2. . . . .
