Gevo and Future Energy Global signed a landmark SAF carbon credit offtake agreement targeting Scope 1 and 3 emissions, supporting aviation decarbonization through voluntary markets.

Gevo Inc. and Future Energy Global are pleased to announce that they have signed a pioneering offtake agreement for carbon abatement attributes, to enable airlines and other companies to reduce their CO₂ emissions through sustainable aviation fuel (SAF). Under the multi-year deal, FEG will acquire from Gevo the Scope 1 and Scope 3 emissions credits from 10 million gallons per year of fuel to be produced at Gevo’s alcohol-to-jet (ATJ) SAF production facility, Gevo ATJ-60, to meet demand from FEG customers, both airlines and corporates, seeking to decarbonize their operations. The agreement also includes an option for FEG to increase the off-take later.

This agreement is expected to help Gevo finance the construction of its ATJ-60 facility. Gevo has secured a loan guarantee conditional commitment of $1.63 billion (including capitalized interest during construction) from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) and is originating equity from project-level capital providers. Under development in Lake Preston, South Dakota, ATJ-60 is designed to address the market need for cost-effective jet fuel while abating carbon and to respond to growing worldwide demand for SAF. Gevo’s proprietary plant design is expected to produce 60 million gallons of SAF per year at production costs similar to conventional jet fuel but with far lower carbon emissions.

The aviation industry has targeted net-zero CO₂ emissions by 2050, and SAF is expected to contribute around two-thirds of the necessary emissions reduction, but to achieve this, its production quantities need to scale more than 400-fold. SAF is not yet available at all major airports worldwide, so FEG provides SAF-derived Scope 1 credits to airlines who wish to buy additional SAF but cannot easily source the physical fuel at their airports. Similarly, when companies purchase and retire SAF-derived Scope 3 credits to compensate for their business travel emissions, they mitigate the added cost of SAF to airlines and thus enable the faster scale-up of SAF production.

The Greenhouse Gas Protocol defines different “scopes” of responsibility for emissions. The emissions from a flight fall under an airline’s direct responsibility (i.e., Scope 1), but a company with staff flying for business on that flight is responsible for its staff’s share of the flight’s emissions (i.e., Scope 3 or indirect emissions). Separating the Scope 1 and Scope 3 attributes from the physical fuel, an approach known as “Book and Claim,” reduces fuel transportation and storage costs and carbon emissions, and unlocks a global SAF market both for airlines and for indirect aviation fuel customers around the world who are seeking to mitigate their emissions.

“Gevo has always planned to leverage SAF market economics to scale our business, and a Book and Claim market that enables the trading of SAF environmental attributes can accelerate SAF production even faster,” says Patrick R. Gruber, CEO of Gevo. “Future Energy Global is building such a market, spanning corporate customers, airlines, and aircraft lessors. Aircraft lessors own about half of all commercial aircraft worldwide, and Book and Claim is a critical enabler that allows them and their airline customers to adopt SAF faster.”

“FEG’s collaboration with Gevo strongly enhances the portfolio of Book and Claim solutions we can offer our airlines, our lessors, and our corporate customers,” says Natasha Mann, CEO and co-founder of FEG. “It’s crucial to scale SAF production, and our business model lets us unlock the capital. We’re impressed with Gevo’s pipeline, which combines technology ready for today’s market and additional technologies far along in development that could increase production efficiency and accelerate the trajectory of SAF scaling.”

FEG’s unique business model brings together investors, suppliers, and buyers to help accelerate and scale SAF production globally. FEG generates additional revenue streams by commercializing SAF’s carbon credits, enhancing the business case for faster production scale-up. FEG’s offtake agreement with Gevo is expected to fulfill a market need by giving buyers access to SAF credits at predictable prices, while providing financial commitments and revenue certainty that are expected to allow suppliers like Gevo to expand. FEG’s initial focus has been on aviation, though its sustainable-fuel credit solutions span the transport spectrum, including marine and land transport.

Scope 1, Scope 3, & SAF — Align for Net-Zero Aviation Today

Gevo’s carbon credit agreement is critical in leveraging SAF for corporate decarbonization goals. As aviation faces pressure to reduce full-lifecycle emissions, voluntary carbon frameworks will be essential.

Klean Industries Delivers the End-to-End SAF Advantage:

✅ Tire pyrolysis oils and renewable fuels are compatible with SAF pathways
✅ Verified carbon tracking and credits via KleanLoop™
✅ Solutions for ESG compliance, Scope 1 & 3 decarbonization, and aviation offsets
✅ Integrated SAF infrastructure planning and project execution

Partner with Klean Industries to develop carbon-credit eligible SAF solutions that help your organization decarbonize air travel and meet climate targets » GO.