Legislation expected to underpin the financing of Velocys’ US sustainable aviation fuel reference project
Velocys plc (VLS.L), the sustainable fuels technology company, welcomes the passing of the “Inflation Reduction Act of 2022” by the US Congress in relation to key legislation tackling climate change. Velocys notes that the legislation is expected to be signed into law by President Biden shortly.
Subject to becoming law, this landmark piece of legislation allocates approximately $369 billion to reducing greenhouse gas emissions and incentivises expanded production and use of domestic clean energy. Sustainable Aviation Fuel (“SAF”) tax credits are an integral part of the Act, together with other incentives and mechanisms to accelerate the deployment of advanced fuel technologies, generating non-fossil fuels with a significantly reduced carbon intensity.
SAF is the only current commercially scalable decarbonisation route for the aviation sector. Multiple pathways to SAF production are needed to satisfy the aviation industry’s decarbonisation targets towards “net zero”. Velocys provides its clients with integrated IP-protected technology enabling the production of synthetic aviation fuel from a variety of sustainable feedstocks with ultra-low to negative carbon intensity.
The SAF tax credits and associated incentives are expected to underpin the financing of Bayou Fuels, Velocys’ advanced SAF reference project in Natchez, Mississippi, US. Bayou Fuels is a planned cellulosic biofuels plant enabling the production of carbon negative fuel through the use of biogenic feedstock, renewable power, and carbon sequestration. The biorefinery will convert 3,000 tons/day of woody biomass forestry residues into 36 million gallons/year (nameplate) of renewable transportation fuels, predominantly SAF, with a negative carbon intensity. The biofuels produced will adhere to both the US Renewable Fuel Standard (“RFS”) and the Low Carbon Fuels Standard (“LCFS”) and earn additional incentives via the associated Renewable Identification Number (“RIN”) and LCFS credits.
As announced in November 2021, Velocys has already secured long-term offtake arrangements for 100% of the SAF output expected from the Bayou Fuels facility with Southwest Airlines (a 15-year agreement) and IAG/British Airways (MOU for a 10-year agreement) avoiding 8.8 million tonnes of CO2 over the term of the off-takes. This new climate legislation is expected to allow finalisation of conversion of the MOU to a full offtake agreement.
This critical legislative development in the US follows last month’s launch by the UK Government’s Department for Transport of its Jet Zero Strategy, setting out the Government’s approach for achieving net zero aviation by 2050. This includes an ambition for a minimum of five commercial-scale SAF plants to be under construction in the UK by 2025, and a mandate for the equivalent of at least 10% SAF to be blended into conventional aviation fuel by 2030. Velocys and British Airways are jointly developing the Altalto project, which is to build a full scale plant in Immingham, UK, to make SAF from commercial and residential residual waste, in anticipation of UK policy incentives competitive with those announced by the US. Importantly, the UK mandate is to be expressed in terms of greenhouse gas reductions, rather than simple volume, which will benefit Altalto due to its ultra-low carbon intensity.
Henrik Wareborn, CEO, said:
“The legislation passed in the US is of historic significance, putting the United States on a path to lower its emissions significantly by 2030, and beyond. We believe this landmark legislation represents a compelling model which other governments will seek to follow, in particular in its focus on total amount of avoided carbon instead of volume of sustainable fuel supplied, thus prioritising those technologies which offer routes to negative carbon intensity fuels.
“This development, coupled with the UK’s launch of its Jet Zero strategy, represents a major endorsement of Sustainable Aviation Fuel, and Velocys’ proprietary technology to produce it.”
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
Lak Siriwardene, Director of Communications
+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 is pleased to see the UK Government setting out its Jet Zero Strategy, which outlines an ambition for a minimum of five commercial-scale SAF plants to be under construction in the UK by 2025. Also included is a mandate for at least 10% SAF to be blended into conventional aviation fuel by 2030, reducing greenhouse gas emissions. As noted in the strategy, the Government has pledged to further work with industry to create the long-term conditions for investable projects in the UK. In order to develop a UK SAF industry and to meet the Government’s targets, Velocys believes additional investment support is vital to rapidly develop the UK SAF industry.
As a member of the Jet Zero Council, Velocys looks forward to working closely with the UK Government on its mission to deliver net zero aviation by 2050.
For the Jet Zero Strategy click here.
Velocys plc (VLS.L), the sustainable fuels technology company, announces that, at its Annual General Meeting held earlier today, all resolutions put to shareholders were duly passed by means of a Poll.
Full details of the resolutions passed are set out in the Notice of Meeting which is available on the Company’s website www.velocys.com.
| Resolutions | For / Discretion | Against | Total | Vote withheld* | ||
| Number | % | Number | % | |||
| 1. To receive, consider and adopt the annual accounts of the Company as at 31 December 2021 and the Directors’ and auditors’ reports thereon | 588,201,272 | 99.97 | 184,835 | 0.03 | 588,386,107 | 109,029 |
| 2. To approve the Directors’ Remuneration Report for the year ended 31 December 2021 | 550,447,082 | 99.32 | 3,788,593 | 0.68 | 554,235,675 | 34,259,461 |
| 3. To re-elect Philip Holland | 588,053,823 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 4. To re-elect Henrik Wareborn | 588,053,773 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 5. To re-elect Darran Messem | 588,053,823 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 6. To elect Ann Markey | 588,124,814 | 99.96 | 210,285 | 0.04 | 588,335,099 | 160,037 |
| 7. To elect Tom Quigley | 588,114,539 | 99.96 | 220,560 | 0.04 | 588,335,099 | 160,037 |
| 8. To re-appoint PricewaterhouseCoopers LLP as auditors to the Company | 561,772,368 | 95.47 | 26,627,803 | 4.53 | 588,400,171 | 94,965 |
| 9. To authorise the Directors to fix the remuneration of the auditors | 584,869,771 | 99.40 | 3,513,336 | 0.60 | 588,386,107 | 109,029 |
| 10. To amend the Rules of the Velocys plc 2021 Share Option Scheme to reduce the maximum dilution limit from 25% to 10% of the issued share capital | 564,627,866 | 95.99 | 23,560,183 | 4.01 | 588,188,049 | 307,087 |
| 11. To authorise the Directors to allot equity securities pursuant to the articles of association of the Company | 587,883,154 | 99.92 | 483,300 | 0.08 | 588,366,454 | 178,682 |
| 12. To authorise the Directors to allot equity securities for cash disapplying pre-emption rights in the Company’s articles of association | 272,045,100 | 90.99 | 26,945,753 | 9.01 | 298,990,853 | 289,504,283 |
| 13. To authorise the Company to purchase its own shares | 544,015,025 | 95.89 | 23,332,203 | 4.11 | 567,347,228 | 21,147,908 |
* ‘Vote withheld’ is not a vote in law and is not counted in the calculation of the proportion of the votes ‘For’ and ‘Against’ a resolution.
Confirmation of Directorate Change
As previously announced, Philip Sanderson will be appointed as an Executive Director of the Company and as Chief Financial Officer with effect from 22 June 2020. Andrew Morris did not stand for re-election at the Annual General Meeting.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+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 appointment of Philip Sanderson as an Executive Director of the Company and as Chief Financial Officer (“CFO”) with effect from 22 June 2022. This follows the Company’s announcement in February 2022 that Andrew Morris had advised of his intention to step down as CFO and will not stand for re-election at the Company’s annual general meeting on 21 June 2022. To ensure a smooth transition, Andrew will remain with the business for an agreed period.
Philip joins Velocys with over 30 years of international finance and commercial expertise in advanced fuels and lubricants, large scale capital project execution and low carbon energy in a range of divisions and affiliates of Shell Plc. Philip is joining us directly from a role of Vice President Finance Global Marketing. Philip has an impressive track record in commercial delivery, strategic planning, corporate governance and consistently driving shareholder value.
Philip’s experience includes roles in business partnering, financial and risk management, governance and assurance, and major transaction engagement. Additionally, he has extensive experience of capital project development and project financing.
Philip holds a BA (hons) in Mathematics from The University of Oxford and is an Associate of the Chartered Institute of Management Accountants.
Additional information:
The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies:
Philip Thomas Edward Sanderson, (aged 52) holds, or has held, the following current and former directorships in the past five years:
Current Directorships
The Learning Through Landscapes Trust
Previous Directorships in the last five years
Shell and Turcas Petrol A.S.
Shell Downstream South Africa (Pty) Ltd.
Shell East Europe Company Limited
The Consolidated Petroleum Company Limited
The Shell Company of Nigeria Limited
The Shell Company of Turkey Limited
The Shell Company (W.I.) Limited
Philip Sanderson does not currently hold any shares in the Company.
Henrik Wareborn, CEO, said:
“Philip’s commercial acumen coupled with a senior financial background from a global integrated energy major will help Velocys to accelerate its growth strategy of providing integrated, IP-protected, decarbonisation technology to clients in the most difficult to abate industrial sectors, such as aviation fuel.
“I want to thank Andrew for his significant contributions to Velocys over the last 5 years, initially as a non-executive board member and over the last three years as CFO”.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head 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 that copies of the 2021 annual report and accounts, together with the notice of Annual General Meeting, have been sent to all registered shareholders and will be made available for viewing on the Company’s website at www.velocys.com.
Annual General Meeting
The Annual General Meeting will be held at 10.45 am on Tuesday 21 June 2022 at The Sadler Building, Heatley Road, The Oxford Science Park, Oxford OX4 4GE.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+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, the sustainable fuels technology company, is pleased to announce its final audited results for the year ended 31 December 2021, which shows the Company making good progress in the technology delivery and commercialisation phase of its growth strategy.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that Henrik Wareborn, CEO, and Andrew Morris, CFO, will provide a live presentation relating to the results for the period ending 31 December 2021 via the Investor Meet Company platform on Friday 20th May 2022 at 1:00pm BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet VELOCYS PLC via:
www.investormeetcompany.com/velocys-plc/register-investor
Investors who already follow VELOCYS PLC on the Investor Meet Company platform will automatically be invited.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head 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 (AIM: VLS), the sustainable fuels technology company, will report its results for the full year ended 31 December 2021 on Tuesday, 17 May 2022.
A results presentation for sell-side analysts will be held on Microsoft Teams at 11.00am on the morning of results, hosted by Henrik Wareborn, CEO and Andrew Morris, CFO.
If you would like to receive the dial in details, please contact Buchanan at velocys@buchanan.uk.com
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, 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 (AIM: VLS), the sustainable fuels technology company, is pleased to announce, further to the business update on 4 April 2022, that it has entered into a contract with a European renewable fuels developer to provide initial engineering services to a project, which is in the planning stages. Whilst the revenue for this initial stage of the project is de minimis (and project progression to material revenues to be determined), the agreement broadens the Company’s customer base and demonstrates the ability to progress its pipeline of potential global customers towards commercial contracts. This is also in line with the aims of the Company’s business development function, headed by Andy Bensley.
The Company has also agreed with British Airways (”BA”) to extend both the UK Altalto project Joint Development Agreement and the Option Agreement for BA to acquire 50% of Altalto Ltd by one year to 31 March 2023. The original option was signed on 12 May 2020 and initially extended on 30 March 2021.
Velocys offers its customers a technology solution enabling commercial scale production of sustainable synthetic fuels from a variety of waste materials, such as municipal, commercial and forestry residue. Sustainable aviation fuel, SAF, is the only commercially available alternative to fossil aviation fuels.
The importance of sustainable synthetic fuels from bio-based feedstocks was also recently highlighted by President Biden, as part of the US aviation decarbonisation agenda.
The Company’s customer pipeline is growing with increased demand for the Velocys technology to ramp up the commercial scale production of sustainable synthetic fuels to accelerate the global clean energy transition, and to strengthen host country fuel independence.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+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.
As a sustainable fuels technology company, Velocys welcomes President Biden’s commitment to incentivise the production of sustainable aviation fuel (SAF). Synthetic fuel, enabled by the Velocys technology, is THE only ‘here-and-now’ solution to decarbonising aviation as a drop-in approved fuel, and supports both environmental improvements and energy security.
The President’s commitment reflects the importance and need for technology solutions to produce synthetic fuels and recognises the value of the industry itself. We look forward to further developments, and their support of Velocys’ landmark US biorefinery reference project, Bayou Fuels in Mississippi.
President Joe Biden said:
“I’ve spoken with the leading heads of all major airlines. It’s going to require billions of gallons of sustainable aviation fuel. And you simply can’t get to net zero by 2050 without biofuels.
“Aviation isn’t a case where you blend in a little bit of biofuel. It’s where it’s called ‘drop in’ – meaning 100% biofuel.
“To bring that future within reach, I proposed a sustainable aviation fuel tax credit that we brought together — the governments, the agencies, aircraft manufacturers, airlines, fuel producers, airports — to advance cleaner and more sustainable fuels for American aviation. That’s how we’re going to get there. And we can.”