Velocys' medium-term goal is to develop a leading market supply position in the attractive, growing market for renewable fuels, principally in the US.
Velocys provides a cost-effective route from low cost, woody biomass to premium renewable diesel and jet fuel and associated carbon credits. There is an abundance of suitable feedstock from entirely sustainable sources, allowing the Velocys route to renewable fuels to be highly scalable to meet increased demand.
For example, the consumption of renewable diesel in California was estimated at approximately 300 million gallons in 2016. By 2030 around 1 billion gallons of renewable diesel will be needed to meet Californian state obligations.
Velocys can also make renewable fuels from municipal solid waste, which is particularly attractive in countries such as the UK.
Velocys enables resource holders, partners, airlines, truck fleet operators, governments and investors, to deliver their environmental obligations and programmes for renewable fuels at scale, in a world where there is increasing pressure from legislation and public opinion to curb greenhouse gas emissions and reduce pollution. Fuels produced by the biomass-to-liquids process have highly desirable properties and can deliver over 60% greenhouse gas reduction and 90% reduction in particulate matter emissions compared with conventional fuels.
In the US, renewable fuels produced by a Velocys plant would qualify for the highest level of RIN (Renewable Identification Number) credits (under the Renewable Fuel Standard), with a value (in July 2017) of around $4.5/gallon. Renewable diesel sold in California would additionally qualify for State Low Carbon Fuel Standard credits worth around $0.5/gallon of products.