Partnership with NEXTCHEM integrates breakthrough NX Circular gasification and Velocys’ proven Fischer-Tropsch technology
Houston and Oxford, England – September 8, 2025 – Altalto (Immingham) Limited, owned by Velocys, has been awarded funding from the UK Department for Transport’s Advanced Fuels Fund to complete Basic Engineering Design for its flagship waste-to-SAF facility. The grant enables Altalto to integrate NX Circular™ gasification and NX CPO™ technology from NEXTCHEM with Velocys’ proven MicroFTL™ technology, strengthening its position as the most advanced municipal solid waste-to-SAF project in the UK—and globally.
Altalto is designed to produce 30 million litres (23kT) of sustainable aviation fuel annually from residual waste streams, enough to power over 500 London–New York flights per year. Once operational, the project will deliver more than 100,000 tonnes of CO₂-equivalent savings annually, support the circular economy by diverting waste from landfill and incineration, and create hundreds of jobs in the Humber region.
The project now has planning consent, strong government support, and selected technology partners across the full value chain, including waste sourcing, gasification, Fischer–Tropsch synthesis, and fuel upgrading. With Front-End Engineering Design (FEED) expected to commence in early 2026, Altalto is positioned as the UK’s near-term commercial-scale SAF solution.
Matthew Viergutz, CEO of Velocys, said:
“This new award underscores the UK Government’s confidence in Altalto and in Velocys’ Fischer–Tropsch technology. By integrating NEXTCHEM’s proven gasification systems, we are strengthening Altalto’s pathway to becoming the UK’s first commercial waste-to-SAF plant. Altalto is alive, advancing, and represents the most near-term opportunity to deliver meaningful volumes of sustainable aviation fuel from waste.”
With the UK’s SAF Mandate requiring 10% of jet fuel demand to be met by sustainable sources by 2030, Altalto stands ready to anchor the nation’s pathway to net-zero aviation.
Key Facts about Altalto (Immingham) waste-to-SAF project:
About Velocys
Velocys is a leading technology innovator in the production of sustainable aviation fuel and other low-carbon fuels through its proprietary Fischer-Tropsch process. Its microchannel reactor technology enables efficient, modular production that can be deployed globally.
microFTL™ is a trademark of Velocys
NX Circular™ and NX CPO™ are trademarks of NEXTCHEM (MAIRE Group)
Links:
HOUSTON & OXFORD – September 2, 2025 – Velocys, a leader in Fischer-Tropsch (FT) technology for producing sustainable aviation fuel (SAF) and other low-carbon fuels, has signed an agreement with Morimatsu to provide manufacturing and engineering support for Velocys FT reactors and associated equipment. These systems will be deployed in SAF projects built on Velocys’ proprietary microFTL™ technology.
By combining Velocys’ advanced FT technology with Morimatsu’s global reputation for high-quality process equipment, the collaboration delivers immediate value to SAF developers and investors. Customers will benefit from:
“Morimatsu is a globally respected name in process equipment manufacturing and module fabrication,” said Andy Bensley, Chief Operating Officer of Velocys. “Together, we can offer customers best-in-class FT solutions with an optimal, de-risked path to project delivery.”
“Velocys’ Fischer-Tropsch technology is among the most advanced in the industry, and Morimatsu is proud to help turn that innovation into world-class process units,” said Sheng Ye, CEO of Morimatsu Heavy Industry. “Our global manufacturing and modular delivery experience will ensure every FT jet fuel and chemical production unit meets the highest standards, accelerating the commercial rollout of cost-effective, low-carbon fuels.”
Velocys’ microFTL technology sits at the heart of multiple commercial-scale SAF projects around the world. By converting waste and biomass feedstocks into drop-in fuels that meet international aviation standards, Velocys enables airlines and fuel suppliers to advance their decarbonization goals at scale.
Velocys is a technology innovator in the production of sustainable aviation fuel and other low-carbon fuels through its proprietary Fischer-Tropsch process. Its microchannel reactor technology enables efficient, modular production that can be deployed globally. Learn more at www.velocys.com.
Morimatsu is a global engineering and manufacturing company specializing in process equipment and modular solutions for the Oil & Gas, Refinery, Petrochemical, Chemical, Fine Chemical, Mining & Hydrometallurgy, EV Battery, Green Energy, and Circular Economy industries. With operations in Asia, Europe, and the Americas, Morimatsu delivers high-quality, precision-engineered systems to customers worldwide. Learn more at www.mori-matsu.com.
Media contact
Lee French
Marketing and Communications
Velocys
info@velocys.com
Source: Toyo Engineering Corporation
August 21, 2025 – Toyo Engineering Corporation (President and CEO: Eiji Hosoi, TOYO) has been selected by the New Energy and Industrial Technology Development Organization (NEDO) for its initiative, “Development of Production Technologies for Sustainable Aviation Fuel (SAF), etc.”. TOYO’s proposal, “Feasibility Study on SAF via Gasification FT Synthesis Using Expanded Feedstocks and eSAF Production”, was adopted under the category “Development of SAF Production Technologies Utilizing Diverse Feedstocks”.
With global air traffic projected to rise and the urgent need to reduce greenhouse gas (GHG) emissions, demand for SAF is expected to grow rapidly in the coming years. This project will evaluate the technical and economic feasibility of producing SAF from a wide range of feedstocks—including municipal solid waste—via two distinct pathways: 1) gasification Fischer-Tropsch (FT) synthesis and 2) methanol synthesis and conversion to SAF.
TOYO’s feasibility study will include Velocys’s advanced FT synthesis technology and its own proprietary methanol production technology, developed through decades of engineering innovation.
The study will run for approximately 18 months, from FY2025 through FY2026, and will consider both domestic and international site conditions.
Project Objectives
TOYO has previously conducted pilot-scale continuous SAF production via gasification plus FT synthesis and contributed to studies for building an integrated SAF supply chain under NEDO’s sponsorship.
Going forward, TOYO will leverage its technological expertise and global partnerships to help establish the technological foundation needed for the widespread adoption of sustainable aviation fuel.
Source: SEKISUI CHEMICAL CO., LTD. – OSAKA – August 21, 2025
SEKISUI CHEMICAL CO., LTD. (President and Representative Director: Keita Kato; hereafter, “SEKISUI CHEMICAL”) and Velocys Inc. (CEO: Matthew Viergutz; hereafter, “Velocys”) have signed a memorandum of understanding (MoU) establishing a strategic partnership to advance production technology for electro-Sustainable Aviation Fuel (e-SAF), a CO2-derived synthetic fuel. This partnership combines SEKISUI CHEMICAL’s CO2→CO chemical looping technology with Velocys’ Fischer-Tropsch (FT) microchannel reactor technology to enable the manufacture of synthetic fuels using CO2 as a feedstock, thus contributing to decarbonization.
Background
CO2 emissions must be reduced across all industries to achieve carbon neutrality by 2050. The aviation industry accounts for approximately 2.6% of global CO2 emissions, and a key emission reduction measure that is gaining attention is the use of Sustainable Aviation Fuel (SAF). According to the International Energy Agency (IEA) and other organizations, 65% of CO2 reduction targets for the aviation industry can be achieved through the adoption of SAF. At present, conventional SAF is manufactured from waste oil and biomass-derived raw materials. However, considering the anticipated increase in SAF demand going forward, the early commencement and widespread adoption of e-SAF—which is manufactured from CO2 and hydrogen derived from renewable energy—is considered essential.
In this context, CO2 capture and utilization (CCU) technology, which converts CO2 into fuel and chemical products for practical use, is attracting attention. CCU technology enables the reuse of CO2 as a valuable resource and replaces fossil resources, thereby reducing CO2 emissions into the atmosphere.
Strengths of both companies
SEKISUI CHEMICAL is working to reduce global CO2 emissions through the social implementation of CCU technology. To date, it has developed a unique chemical looping technology that converts CO2 into CO with a high reaction yield (90% or higher).
Velocys has been developing FT reaction technology for the manufacture of synthetic fuels from synthetic gas (a mixture of CO and H2) converted from municipal waste, industrial waste, biomass, and CO2 for over 20 years. Its proprietary catalyst and microchannel reactor design have established productivity six to ten times higher than conventional FT reaction technology.
Collaboration overview
This project aims to establish a new e-SAF manufacturing technology by combining SEKISUI CHEMICAL’s proprietary CO2→CO chemical looping reaction technology, which achieves high reaction yields (90% or higher), with Velocys’ FT reaction technology (synthetic gas → synthetic fuel), which achieves high CO conversion rates (90–95%).
In the future, the two companies will work to establish a highly efficient e-SAF manufacturing technology using CO2 as a raw material, thereby contributing to the decarbonization of the aviation industry and the realization of a sustainable society.
Previous initiatives of both companies
■ SEKISUI CHEMICAL
SEKISUI CHEMICAL has achieved a CO reaction yield of 90% or higher using its proprietary CO2→CO chemical looping reaction technology*. It has successfully operated for a cumulative total of six months in a small-scale demonstration using exhaust gas from a steel mill (1 kg- CO2/day) and is currently conducting a survey project (NEDO “International Demonstration Project on Japan’s Technologies for Decarbonization and Energy Transition (Pre-Demonstration Survey)”) aimed at a 10 t- CO2/day scale demonstration.
*This achievement is a result of NEDO’s international joint research and development project (JPNP20005) for innovative technology in the field of clean energy.
■ Velocys
Velocys has conducted research and development of microchannel FT reaction technology for over 20 years. It has a proven track record of continuous operation for over 6,000 hours at a scale of up to 250 barrels per day. As part of a NEDO project to produce SAF from biomass in Japan, Velocys’ technology was used to manufacture SAF that complies with international standards and was used to fuel a commercial flight. It is currently advancing multiple low-carbon fuels projects with varying commercial production capacities.
Reference
Overview of SEKISUI CHEMICAL CO., LTD.
Overview of Velocys Inc.
Velocys has been selected as the Fischer-Tropsch technology provider for the world’s first electrified biogas-to-SAF plant, dubbed NovaSAF 1. This first-of-its-kind commercial facility in Uruguay will convert dairy waste and biogas into sustainable aviation fuel using only renewable electricity and waste-derived gases. The project is being led by Syzygy Plasmonics, whose novel GHG e-Reforming platform enables low-cost, decentralized fuel production without the need for hydrogen electrolysis or complex gasification.
At the heart of this breakthrough is Syzygy’s light-driven syngas generation process, which produces an ideal 2:1 hydrogen-to-carbon monoxide ratio directly from biogenic methane and carbon dioxide—creating a perfect feedstock for Fischer-Tropsch synthesis. Velocys’ microFTL reactor system was selected to maximize fuel yield from this tailor-made syngas, further driving down the total cost of SAF production.
“This is what innovation looks like—fast, flexible, and focused on making SAF production affordable,” said Matthew Viergutz, CEO of Velocys. “We’re proud to bring our proven FT platform into a project that’s radically simplifying how sustainable fuels are made.”
The fully modular design of both Syzygy’s and Velocys’ systems allows for rapid deployment and replication across thousands of underutilized biogas sites globally. With a nameplate capacity of 500,000 gallons per year, NovaSAF 1 aims to begin operations in early 2027 following a planned final investment decision in Q4 2025.
“With Velocys, we’re bringing in a complete, modular solution that drives down overall production costs and is ready to scale,” said Trevor Best, CEO of Syzygy Plasmonics. “Uruguay is only the start.”
With broad policy alignment and an architecture built for replication, the NovaSAF 1 project offers a powerful new model for decentralized SAF production that is both economically and environmentally sustainable.
Learn more about Velocys’ SAF project capabilities.
Houston, TX — June 24, 2025 — Velocys, a leader in advanced synthetic fuels technology, today announced the commercial launch of microFTL™, a modular Fischer-Tropsch (FT) technology package that simplifies plant design and reduces the cost of producing sustainable aviation fuel (SAF), renewable diesel, and eFuels. This commercially available license package derisks projects with its unmatched technology readiness level and economically superior SAF production yields.
Combining microchannel FT reactors, a high-activity catalyst engineered at Oxford University, and deep FT process expertise, microFTL is purpose-built for today’s SAF projects: scalable, cost-efficient, and ready to deploy. By increasing yield and lowering both CapEx and OpEx, microFTL helps projects achieve stronger economics and better investor confidence.
Fischer-Tropsch synthesis is the critical step that turns syngas from waste, biomass, or captured CO₂ and hydrogen into liquid hydrocarbons. But conventional FT systems, originally designed for fossil-based megaprojects, are too large, too expensive, and unproven in today’s climate-driven fuel landscape.
“Legacy FT technology drives up cost and complexity at a time when projects need to move faster and prove bankability,” said Matthew Viergutz, CEO at Velocys. “microFTL is different. It’s efficient, modular, and already proven with a variety of feedstocks. We’re giving developers and integrators the tool they need to bring low-carbon fuels to market—at a cost that increases project value.”
microFTL technology has already delivered results in two high-profile demonstrations:
These projects confirm microFTL as the most advanced, highest-TRL FT platform in the renewable fuels market.
Microchannel FT reactors – Compact, modular units with precise temperature control and efficiency
Oxford-engineered catalyst – High activity, long life, and optimized for renewable feedstocks
Integrated FT process package – Complete system from syngas input to FT crude output
Highest fuel yield – Maximizes high-value liquid output per unit of syngas, improving overall project IRR
Lower CapEx and OpEx – Smaller footprint, faster installs, and reduced ongoing costs
Velocys is now seeking fuel upgrading partners, technology integrators, and SAF project collaborators. If you are developing infrastructure to process FT crude into certified SAF or renewable diesel—or integrating FT systems into your next-gen fuels plant—we want to work with you.
About Velocys
Velocys is a global innovator in synthetic fuels technology, delivering scalable, low-carbon solutions to meet rising demand for sustainable aviation fuel and renewable diesel. The company’s Fischer-Tropsch SAF and renewable diesel solutions are optimized for modular deployment, fast integration, and economical production across a wide range of feedstocks.
Contact
Media and partnership Inquiries:
Lee French
PR and Marketing
Velocys
info@velocys.com
www.velocys.com
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that it has completed the appointment of a leading global investment bank to advise it on the financing of its two key technology reference projects; the Bayou Fuels project in Natchez, Mississippi, and the Altalto Immingham project in the UK.
Henrik Wareborn, CEO, said:
“Following the recent announcement of our master relationship agreement with Bechtel, today’s announcement further supports the acceleration of our commercial and strategic vision for Velocys.”
For further information please refer to the Notes to Editors or please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (AIM: VLS), the sustainable fuels technology company, is pleased to provide the following business and post close update for the 12 months ending 31 December 2022 (“FY22”).
Based on unaudited accounts for FY22, the financial performance of the Company was in line with market expectations. As of 31 December 2022, Velocys had a cash balance of £13.4 million (2021: £25.5 million). The Company expects to report its results for the year to 31 December 2022 in May 2023.
During 2022, Velocys saw the achievement of a number of key milestones and objectives which put the Company in a strong position to progress its reference projects through to key valuation inflection points and build its commercial pipeline.
Business Scale-up and Delivery
Bayou Fuels Project (US)
Altalto and e-Alto Projects (UK)
Post year-end, Velocys has entered into a Master Relationship Agreement (“MRA”) with Bechtel Limited, one of the world’s most respected engineering companies. The MRA, which will be instrumental in delivering the next important milestones for the reference projects and future commercialisation, sets out a framework and roadmap for the parties to collaborate with each other with the objective of developing an EPC execution model for sustainable fuel plants.
The Company is also in the final stages of appointing a global investment bank as Financial Adviser to assist with, and advise on, the delivery of development capital into the Bayou Fuels (US) and Altalto (UK) projects. As this activity accelerates, we have commenced a broader recruitment programme with a focus on increasing our project engineering and business development capability.
Operations and Business Development
Bayou Fuels Project
With the support of the Financial Adviser, the Company expects the Series A funding for the development capital for the Bayou Fuels project to be launched in Q2 2023, with an aim to enter in to FEED by Q4 2023, delivering a pathway to Financial Investment Decision (“FID”) in Q1 2025. Once the project enters FEED, the Company expects to generate revenues for its technology license and engineering service. Velocys expects to retain a reduced equity position in the Bayou project post the Series A fundraising.
Following FID in early 2025, the Company expects to enter into construction with commissioning and start up anticipated in 2028, at which point Velocys expects to be generating revenue from reactor and catalyst sales, engineering services and technology licensing.
The 15-year, fixed price, offtake agreement remains in place with Southwest Airlines, amended recently to reflect the updated project schedule, as well as a Memorandum of Understanding with IAG for a 10-year fixed price offtake for 100% of the SAF produced at the biorefinery.
As previously announced, the project has significantly improved its carbon intensity score from -144g CO2e/MJ to -375g CO2e/MJ through the provision of a biomass boiler renewable power solution with CCS integration. This improvement has the potential to increase future revenue for Bayou Fuels and further support third party project funding. The Inflation Reduction Act of 2022 supports the project greatly as the 45Z tax credits incentivises the total amount of avoided carbon rather than the volume of sustainable fuel supplied, therefore prioritises our technology which offers a direct route to negative carbon intensity fuels.
Altalto Project
A grant award of £27 million was received for this project from the DfT’s Advanced Fuels Fund, the highest such award from the DfT to any party involved in the competition. This award, along with private sector matched funding, will be used for the completion of the project FEED and places Altalto on a clear pathway to FID by the end of 2024 and recognises the progress that has been made in advancing the project. Altalto expects to enter into construction in 2025 with commissioning and start up anticipated in 2027, at which point Velocys expects to generate revenue from reactor and catalyst sales, engineering services and technology licensing.
Licensor and engineering service agreements are being finalised and, subject to contract, it is expected that Bechtel will commence FEED in Q2 2023. With the support of our Financial Adviser, matched funding will be sought in Q2 2023. This will provide an opportunity for new partners to participate in the early development capital ahead of FID, as well as the development of offtake arrangements. Velocys expects to retain a reduced equity position in the Altalto project post the funding. The project is being jointly developed with British Airways.
Henrik Wareborn, CEO, said:
“The progress and partnerships outlined in this business update reflect the significant achievements made in 2022 and Velocys’ position of strength in a rapidly evolving global market for advanced synthetic fuels technology.
“We have the here-and-now technology to enable SAF production close to sustainable feedstock sources to decarbonise the aviation industry at scale. In order for SAF production plants to be successful, several threads need to be in place, such as government regulatory support, abundant and sustainable feedstock, carbon capture and sequestration, supply of renewable power, and most of all, a technology that works. Velocys provides a uniquely integrated package with its IP-protected technology at its core.
“The progress we continue to make, supported by these new developments and the policy tailwinds, means we have a solid platform to deliver. Consequently, we are confident about the years ahead and our commercialisation strategy.”
This announcement contains inside information for the purposes of the UK Market Abuse Regulation.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
Lak Siriwardene, Director of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce the execution of a master relationship agreement (“MRA”) with Bechtel Limited (“Bechtel”), one of the world’s most respected engineering companies. The MRA sets out a route map for the parties to collaborate with each other with the objective of developing an EPC execution model for the Company’s sustainable fuels projects.
This collaboration will initially focus on Velocys’ two main reference projects – Altalto Project in Immingham, UK and Bayou Fuels Project in the US – and the recently announced e-Alto power-to-liquids project in the UK, all subject to the terms of future contracts. However, the MRA also covers other third-party projects that may be introduced by either Bechtel or Velocys.
Under a separate continuing technical services agreement, Bechtel is providing front end project engineering and other technical services to support the development of Velocys’ Sustainable Aviation Fuel (“SAF”) project portfolio. In particular Bechtel is preparing to commence work on delivery of the Altalto Project Front-End Engineering and Design phase (“FEED”) following the recent UK government grant funding of up to £27 million awarded to Velocys.
Henrik Wareborn, CEO of Velocys, said:
“The master relationship agreement with Bechtel is an important step towards the provision of world class EPC capability and capacity to the expanding Velocys project portfolio. Bechtel is one of the world’s most respected engineering companies. Working with Bechtel will give added value to current and future clients with respect to successful project delivery.”
Paul Marsden, President, Bechtel Energy, said:
“We are committed to supporting revolutionary energy transition projects designed to reduce global carbon emissions. As part of Bechtel’s portfolio in sustainable fuels, we are excited to collaborate with Velocys and look forward to realising the potential of these facilities to introduce sustainable fuel options for global markets.”
Certain information contained in this announcement may constitute inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
For further information please refer to the Notes to Editors or please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
Lak Siriwardene, Director of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Altalto Project, Immingham, UK
The Altalto Immingham Project is a joint development between Velocys and British Airways. The plant will have a nameplate capacity of approximately 80 million litres/year of SAF and naphtha, with negative Carbon Intensity, made from residual commercial and municipal solid waste. Altalto Immingham will also produce a concentrated stream of carbon dioxide ready for sequestration. In December 2022, Altalto was awarded a grant of up to £27 million by the UK Department for Transport (“DfT”), subject to matched funding, to deliver the Front End Engineering Design stage of the project, ahead of construction to begin in 2025.
Bayou Fuels Project, Natchez, Mississippi, US
This plant is expected to produce approximately 125 million litres/year of sustainable aviation fuel (SAF) and naphtha, with negative Carbon Intensity, made from woody biomass residues from the pine plantations in the counties surrounding Natchez, Mississippi. The project includes the use of renewable power and sequestration of the plant’s by-product carbon dioxide. The sustainable fuels produced from the facility will meet all requirements and regulations to be sold in the US generating Federal and State credits under RFS-2 and the relevant State Low Carbon Fuel Standards.
The Bayou Fuels project has a 15-year fixed price offtake agreement with Southwest Airlines, which, together with a further MOU for a 10-year fixed price offtake, account for in aggregate 100 per cent of the SAF produced and underwrites a floor on certain credits.
e-Alto Project, UK
Velocys was also awarded a grant of up to £2.5 million by the DfT for the e-Alto project in December 2022. This allows Velocys and its partners to conduct feasibility, technical validation, site selection and pre-FEED engineering for a plant to produce SAF from carbon dioxide and hydrogen made using renewable (decarbonised) electricity, in the UK.
About Bechtel
Bechtel is a trusted engineering, construction and project management partner to industry and government. Differentiated by the quality of our people and our relentless drive to deliver the most successful outcomes, we align our capabilities to our customers’ objectives to create a lasting positive impact. Since 1898, we have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world’s infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.
Bechtel serves the Energy; Infrastructure; Manufacturing & Technology; Mining & Metals; and Nuclear, Security & Environmental markets. Our services span from initial planning and investment, through start-up and operations.
Velocys, the sustainable fuels technology company, announced on 12 December 2022 that it had received a grant of £27m from the Department for Transport (“DfT”) Advanced Fuels Fund competition for the Altalto Sustainable Aviation Fuel (“SAF”) project, which is being developed under an existing Joint Development Agreement between Velocys and British Airways to deliver a commercial waste-to-SAF plant in Immingham, UK. Velocys also announced that it had received a separate DfT grant of £2.5m to contribute its technology to an e-fuels project in the UK in collaboration with a number of new and existing partners.
This morning’s announcement by DfT confirms the strategic importance of this award as part of UK Government’s drive to have five SAF plants in construction by 2025.
The £165 million Advanced Fuels Fund provides grants to support the development of commercial-scale SAF plants that are at an advanced stage, enabling them to become ready for investment and construction. The key objective of the Advanced Fuels Fund is to kick-start the UK advanced fuels sector with the commercial deployment of innovative fuel production technologies, such as Velocys’ IP-protected technology, that are capable of significantly reducing lifecycle carbon emissions in the aviation industry.
Transport Secretary Mark Harper said:
“Using waste or by-products to refuel airliners sounds like a flight of fancy, but thanks to £165 million of Government funding it’s going to help us make guilt-free flying a reality.
“It’s exactly this kind of innovation that will help us create thousands of green jobs across the country and slash our carbon emissions.”
Jonathon Counsell, IAG’s Group Head of Sustainability, said:
“Investing in sustainable aviation fuels (SAF) is one of the best opportunities our industry has to decarbonise. We’re delighted that Velocys has received crucial financial support in the UK from the Department for Transport Advanced Fuels Fund.
“IAG has committed US$865 million in SAF purchases and investments to date. With the right policy support to incentivise further investment, the UK could see many SAF plants built over the next decade, creating 6,500 jobs, and saving over three million tonnes of CO2 per year as well as improving the UK’s energy security.”
Cllr Philip Jackson, leader of North East Lincolnshire Council, said:
“I’m really pleased to see this announcement for the project. We have been working with Velocys for several years now – investment on this scale will always take a significant length of time, but this will allow the plans to progress to the next stage.
“We have been working to make North East Lincolnshire a top competitor for green energy investment decisions, and we have grown our credentials, both onshore and offshore, greatly in the last few years.
“We will continue to work with Velocys to land this important project, and help create local jobs for local people.”
Henrik Wareborn, Velocys CEO, said:
“We are encouraged to see that the UK Government is taking seriously the urgent need to transition to lower carbon travel and transport, with its stated ambition of having at least five commercial scale SAF plants under construction in the UK by 2025. Velocys’ IP protected technology provides a pathway to large-scale production of SAF, which is an essential element for achieving net-zero-carbon air travel.”
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
Lak Siriwardene, Director of Communications
+44 1865 800821
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
British Airways has an option to acquire a share of Altalto Limited, the 100% owner of Altalto Immingham Limited, from Velocys.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.