SAF is an extremely important lever for reducing carbon emissions from aviation fuel over its entire life cycle, by up to 80% when used in pure form compared to fossil kerosene. Delta`s separate SAF supply agreement with Neste allows Delta to facilitate its SAF agreement with Takeda and provide sustainable air transportation solutions to other corporate customers. “This supply agreement is an important step towards SAF`s expansion, which is important not only to help us achieve our net-zero goals in the aviation industry, but also to help our customers achieve their own sustainability goals,” Amelia DeLuca, Delta`s chief sustainability officer, said in the September 30 statement. The total value of the Aemetis Delta agreement is estimated at more than $1 billion, taking into account california`s low-carbon fuel credits, the value of NIRs, as well as the $1/gallon federal blender tax credit and the Internal Revenue Service`s 45Q carbon sequestration tax credits. Delta Air Lines DAL has signed a removal agreement with renewable fuel company Aemetis AMTX for 250 million gallons of fuel blended with sustainable aviation fuel (“SAF”) to be delivered over a 10-year period. The estimated value of the agreement is more than $1 billion. Delta and Aemetis currently hold a No. 3 Zacks (Hold) rank. Airlines have long been under pressure to reduce their carbon emissions. Last month, President Joe Biden struck a deal with U.S. airlines to reduce greenhouse gas emissions from airplanes by 20 percent by the end of the decade.
The Biden administration has also set a goal of replacing kerosene-based kerosene with a “sustainable” fuel by 2050. The SAF agreement advances Delta`s goal of net-zero air traffic. The company has set itself the goal of replacing 10% of its conventional kerosene consumption with SAF by the end of 2030. From 2024, delta is expected to receive Aemetis` mixed SAF. Renewable fuels and biochemicals company Aemetis announced a new removal agreement with Delta Air Lines to supply 250 million gallons of sustainable aviation fuel (SAF) over a 10-year period. Deliveries are expected to begin in 2024 and the value of the deal is estimated at more than $1 billion. Aemetis Inc., a renewable fuels company focused on carbon-negative products, announced today that it has signed a removal agreement with Delta Air Lines for 250 million gallons of sustainable aviation fuel (SAF) to be delivered over the 10-year term of the agreement. The total value of the agreement is estimated at more than $1 billion, including LCFS, RFS, 45Q and tax credits. Delta, based in Atalanta, Georgia, which aims to replace 10 percent of its conventional kerosene consumption with SAF by the end of the decade, has also reached an agreement with U.S.
oil company Chevron Corp (CVX.N) to purchase a test batch from SAF. Read more Renewable fuel maker Aemetis has signed a removal agreement to supply Delta Air Lines with 250 million gallons of sustainable, low-carbon aviation fuel, bringing Delta closer to the airline`s carbon neutrality and helping offset compliance costs associated with its renewable fuel refinery. The SAF fuel supply agreement between Aemetis and Delta follows the September 29 removal agreement between JetBlue and biofuel developer SG Preston for 670 million barrels of SAF over a 10-year period starting in 2023, showing a growing trend in the aviation sector that is difficult to decarbonize through fuel supply. “As Delta is committed to being carbon neutral, we are also committed to investing and continually collaborating with others in the industry,” said Amelia DeLuca, Delta`s Chief Sustainability Officer. “This supply agreement is an important step in SAF`s expansion, which is important not only to achieve our goals of net-zero emissions in the aviation sector, but also to help our customers achieve their own sustainability goals.” The flood of new ABNAHME-SAF deals supports the Biden administration`s goal of producing 35 billion gallons of SAF by 2025. Delta Air Lines and Takeda Pharmaceutical Company Limited (“Takeda”) have entered into a Sustainable Aviation Fuel (SAF) agreement that addresses carbon emissions from the Company`s business travel with Delta. With this agreement, Takeda joins the growing list of corporate customers that are entering into juicy Delta-backed SAF deals that represent both companies` shared commitment to reducing emissions. These partnerships stimulate investment in the SAF market, strengthen industry demand and expand the market with the aim of reducing the aviation industry`s dependence on conventional kerosene. Sustainable aviation fuel offers significant environmental benefits over kerosene, including a lower carbon footprint over its entire life cycle. Delta`s agreement with Aemetis builds on Delta`s ongoing efforts for a net-zero aviation future, including a commitment to airline carbon neutrality from March 2020, a drive to replace 10% of conventional kerosene consumption with sustainable aviation fuel (SAF) by the end of 2030, and a commitment to set scientific goals. that are consistent with the Paris Agreement. Delta Air Lines Signs Sustainable Aviation Fuel Agreement with Aemetis The announcement follows another $1 billion SAF deal signed last month by JetBlue on 670 million gallons of mixed SAF supplied to JetBlue by bioenergy developer SG Preston.
Delta`s deal with Aemetis follows a similar deal between JetBlue Airways JBLU, which currently carries a Zacks Rank #4 (Sell), and SG Preston. Under the agreement, SG Preston will supply at least 670 million gallons of mixed SAF to JetBlue for flight operations at John F. Kennedy International Airport, LaGuardia Airport and Newark Liberty International Airport over a 10-year period beginning in 2023. JetBlue will invest more than $1 billion in the purchase of SAF during this period. .
