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Delta Air Lines Signs Sustainable Fuel Agreement With Gevo -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Delta Air Lines Inc (NYSE:) and Gevo Inc (NASDAQ:) announced Tuesday an agreement that will see Gevo supplying 75 million gallons of sustainable aviation fuel (SAF) a year for seven years to Delta.

Shares of Delta rose 2.5% Gevo traded up 1.8%.

Gevo claimed that the deal would generate $2.8 billion in revenue over the next seven years. This agreement is replacing a Delta deal in 2019, which saw 10 million gallons purchased each year. 

Delta’s committed to including SAF in its operations, as part of its efforts towards net zero.

Gevo’s CEO Patrick Gruber said, “Delta makes a great customer. Recognizing that big changes are needed, it is important to recognize that Delta is the right choice.” 

“Net-zero jet fuels matter. Gruber said that production at our first Net Zero plant will begin in 2025.

Gevo said that it now needs to construct more than one netzero facility. This agreement has conditions, including Gevo funding, developing and financing one or more facilities for the production of the specified amount.

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