Finnair and sustainable aviation fuel producer Gevo have signed a new agreement in which the carrier has agreed to purchase 7 million gallons of SAF per year for five years, Gevo announced Tuesday. Deliveries of the SAF are expected to begin in 2027. The agreement is valued at about $192 million over the five-year period, according to Gevo.
Finnair is a member of the Oneworld airline alliance, and this agreement falls within the framework of a memorandum of understanding that Oneworld and Gevo signed in March 2022 for the member airlines to purchase up to 200 million gallons of SAF beginning in 2027 for a five- year term, according to Gevo. The SAF producer also earlier this month signed an SAF agreement with Japan Airlines, another Oneworld member.
The agreement with Finnair is subject to certain conditions, including Gevo developing, financing and constructing one or more production facilities to produce the SAF, according to Gevo.