Northwest Advanced Bio-Fuels, LLC Executes the Largest Ever, Sustainable Aviation Fuel Offtake Agr
In Q1, 2019, Northwest Advanced Bio-Fuels, LLC, (“NWABF”), agreed to a long-term Sustainable Aviation Fuel, (“SAF”), Offtake Letter of Intent, (“LOI”), with a major U. S. Air Line. The LOI has now been memorialized into a Definitive Fuel Purchase Agreement, (“DFPA”) with this Air Line, one of the world’s largest and most profitable Air Lines in the industry. Kilpatrick Townsend & Stockton’s Mark Riedy and his Energy Team, who represent NWABF, applied extensive experience gained in negotiating and writing fuel offtake contracts for other developers and airlines over the last decade. NWABF will be the primary renewable sustainable aviation fuel provider to this Air Line as a result of many years of hard work and attention-demanding diligence displayed by the NWABF Management Team. “We have spent several years assembling a world-class team of technology and engineering partners who can withstand the scrutiny of potential SAF purchasers. Putting the right companies together, with both hands-on experience in this renewable field, and utilizing 2nd generation technology was, and is, the key,” stated Dave Smoot, CEO of NWABF Parent Company, U. S. Advanced Bio-Fuels, Inc. This long-term Fuel Purchase Agreement, to our knowledge, stands as the largest agreement ever announced for SAF. NWABF will provide renewable SAF to our Offtake Partner using proven, 2nd generation technologies being provided from world-class companies. The Engineering, Procurement, Construction company, (“EPC”), will conduct the upcoming Front-end Engineering and Design Study, (“FEED”). They are responsible for the design, procurement, ultimate construction and testing of the Project. The EPC, also a world-class company, offers a full Project Construction Guarantee and Warranties on the technologies, as well as the SAF fuel quality to be delivered. NWABF’s goal is to assist our Offtake Partner in their continued quest for a reduction of their carbon footprint and assist in meeting federal mandates without incurring huge risks. This solution will also assist the Air Line in meeting the pending International fuel emission guidelines as well. “This DFPA should immediately put our Air Line partner in a leadership position in utilizing a renewable SAF strategy,” said Smoot. “The technologies being deployed and corporate partnerships that NWABF has assembled generate several hundred billion in annual revenues and are capable of ensuring that airlines with international flights are in compliance with the mandates to reduce their carbon footprints, which are currently being created from the use of petroleum-based jet fuels,” Smoot said. “Our Offtake Partner initiated its own company-wide Carbon Reduction program in 2005, and as a result, has decreased emissions by 11 percent and has a longterm goal to reduce emissions by 50 percent by 2050. We believe this is unique to the industry,” added Smoot. This project has additional environmental benefits by reducing wood residuals in forests which can greatly increase potential fire hazards and inhibit future tree growth. Current federal, state and international carbon reduction mandates, combined with the downsizing of these 2nd generation technologies, allow the capital expenditures (“CAPEX”) required to be more competitive in this industry.
The proper economic models are now made possible for industry developers like NWABF and their financial partners. “The industry has matured to the point that it is now possible to develop price competitive designer SAF Projects that compete with petroleum-based jet fuels,” said Smoot. “NWABF offers a risk-averse solution to the emissions and sustainability issues airlines face at home and abroad with petroleum-based fuel. As a result of this partnership and for the first time ever, near emission-free, renewable, designer SAF will be available at competitive prices.” About NWABF Northwest Advanced Bio-Fuels, LLC, a Delaware-based company is a wholly-owned subsidiary of U.S. Advanced Bio-Fuels, Inc., a facility capable of producing up to 60-million gallons of SAF per year. NWABF has assembled a world-class team of industry-leading technology, feedstock suppliers and engineering service companies for the Project to generate premium renewable SAF. NWABF is deploying experienced world-class engineering and construction companies to design, construct, operate and maintain the largest facility-of-its-kind in the State of Washington. NWABF is committed to producing clean, renewable and commercially viable projects producing SAF required for the aviation industry over the next 20+ years.