Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce the execution of a strategic framework agreement with Koch Project Solutions (KPS), a subsidiary of Koch Engineered Solutions, for Velocys’ Bayou Fuels biorefinery project in Natchez, Mississippi, U.S.
Subject to completion of due diligence and integrated licensor work, KPS may be awarded a turnkey engineering, procurement and construction (EPC) contract to deliver the project facility, including an integrated performance guarantee wrap backed by a parent company guarantee.
This project is expected to produce approximately 33 million US gallons/year (125 million litres/year) of sustainable aviation fuel (SAF) with negative Carbon Intensity and naphtha made from woody biomass from the pine plantations in the counties surrounding Natchez in Mississippi. Upon successful execution of an EPC contract, KPS will be responsible for constructing and commissioning this first-of-its-kind facility, which includes the use of renewable power with carbon capture and storage of the plant’s by-product carbon dioxide. The conversion process from gasification of wood chips to FT synthesis generates a significant volume of biogenic carbon dioxide as a by-product. This carbon dioxide is clean, of high concentration and dry and can be used for commercial purposes, replacing fossil based carbon dioxide, or permanently sequestered. The fuels produced from the facility will meet all requirements and regulations to be sold in the US and generate Federal and State credits under RFS-2 and the relevant State Low Carbon Fuel Standards.
The Company continues to retain Worley as engineering partner for the development of pre-feasibility, feasibility and fully integrated technology packages for all Velocys projects, including the planned FEED phase for this Bayou Fuels project.
Henrik Wareborn, CEO of Velocys, said:
“The framework agreement with KPS is an important step in the progress of staged development of the Bayou Fuels biorefinery in Mississippi, US, which will support a financing package for the FEED phase of the project. We selected KPS due to their expertise in strategically evaluating and managing complex projects, particularly in the energy infrastructure space.
“The project will deliver SAF with a Carbon Intensity of -144g CO2e/MJ through the combination of biogenic feedstock, renewable power and carbon capture and storage. Such fuels significantly contribute to improved air quality, by reducing particulate emissions by up to 90%, lower Nitrogen Oxides and 99% lower Sulphur emissions compared to fossil fuels and standard aviation fuel.
“The US is gathering considerable momentum backed by much needed SAF policy support, as seen with the recently announced ‘Sustainable Skies Act’, which will establish the SAF blenders tax credit. Velocys is well positioned to deliver the Bayou Fuels Project with an integrated technology to drive down the Carbon Intensity of its aviation industry clients.”
Paul Switzer, President of Koch Project Solutions, said:
“Koch Project Solutions is proud to support the Velocys Bayou Fuels project and look forward to using the full breadth of our resources to deliver this pioneering biorefinery project on time and to budget. KPS is committed to contributing to the advanced renewable fuels industry and the Bayou Fuels project fulfils our vision.”
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 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)
Sarah Mather (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Field Consulting (General PR)
Rob Jeffery
+44 20 3697 7953
Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from residual woody biomass and municipal solid waste.
Velocys is at present developing two reference projects: one in Natchez, Mississippi, USA (incorporating Carbon Capture, Utilisation and Storage) and one in Immingham, UK, to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary reactor technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
Koch Project Solutions strives to be the preferred partner for capital project execution. Built on a foundation of safety, Koch Project Solutions partners with project owners to develop customized execution and contracting strategies designed to maximize the return on investment. Superior Outcomes. Consistently Delivered.
Koch Project Solutions is built on more than half a century of proven performance. As a Koch Engineered Solutions company, we work as problem solvers and capability builders for industrial customers. Koch Engineered Solutions operates in 25 countries with 4,000 full-time employees at 56 global engineering and sales offices, and 17 manufacturing facilities.
KES is a division of Koch Industries. In their long history, Koch companies have been granted about 10,300 patents, and have earned more than 1,300 awards since 2009 for safety, environmental excellence, community stewardship, innovation and customer service.
www.kochind.com/companies/koch-engineered-solutions
Velocys has been included as part of a select group in a newly launched clean energy index. The Index was developed to showcase the top European clean energy companies that are actively enabling the global transition to a net zero carbon world, aligned with a 1.5°C target.
The Index, centred around a rigorous proprietary ‘Active Net Zero™’ methodology, evaluates a company’s performance towards the energy transition in a systematic framework and is designed to mitigate greenwashing by penalizing fossil fuel activities and rewarding actual achievement and positive contribution to the delivery of Net Zero targets. The Active Net Zero™ Clean Energy Universe is made of up of c.140 European listed companies spanning a range of sectors and market caps.
For Velocys and other such companies that make up the Active Net Zero™ Clean Energy Universe, there will be a benchmark providing a true validation to those genuinely capable of driving forward the net zero energy transition. The Active Net Zero™ Clean Energy Index has ambitions to become the standard by which the progress of the net zero transition will be measured.
For further information please visit the Active Net Zero™ website at:
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that sustainable aviation fuel (SAF) produced by the Company’s proprietary technology using woody biomass residue feedstock has been used in a commercial flight by Japan Airlines (JAL).
Japan Airlines flight (JAL #515) from Tokyo to Sapporo was completed on 17 June 2021.
This important milestone follows on from the collaboration agreement signed with Toyo Engineering Corporation (Toyo) to commence the development of Toyo’s commercial projects to produce SAF and other renewable fuels in Japan using Velocys micro-channel FT technology.
The flight is the first commercial flight in the world to use SAF derived from gasified wood-chips synthesised into aviation fuel. The fuel was produced in a Velocys FT reactor from the hydrogen and carbon gases generated by the gasification of the wood-chips at the demonstration plant in Nagoya in 2020. This facility produced 2,366L of neat aviation fuel blendstock which was tested to ensure that it met the required international standard, ASTM D7566 Annex1. SAF that meets this specification can be blended into conventional jet fuel at any ratio from a small fraction up to 50%.
Henrik Wareborn, CEO of Velocys, said:
“Velocys is pleased to announce the validation of SAF derived from woody biomass as evidenced by the use of 25% SAF blend in this first in the world commercial flight using wood-chips derived jet fuel.
”SAF synthesised with the Velocys FT technology from gasified forestry residue has a 70% lower Carbon Intensity than conventional fossil jet fuel. In addition, FT-SAF offers significant additional air quality improvements thanks to 90% lower particulate emissions, 99% lower sulphur emissions and lower nitrogen oxide emissions than conventional fossil fuels.”
Haruo Nagamatsu, CEO of TOYO, said:
“The Velocys technology demonstrated high efficiency and stable performance at the NEDO pilot plant, and contributed to the production of high-quality SAF, green naphtha and green diesel.”
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)
Sarah Mather (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Field Consulting (General PR)
Rob Jeffery
+44 20 3697 7953
Notes to Editors
Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from residual woody biomass and municipal solid waste.
Velocys is at present developing two reference projects: one in Natchez, Mississippi, USA (incorporating Carbon Capture, Utilisation and Storage) and one in Immingham, UK, to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary reactor technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
The importance of Sustainable Aviation Fuel (SAF) to decarbonisation of the aviation sector has been raised during a meeting of the Prince of Wales’ Sustainable Markets Initiative (SMI). As part of the UK-hosted G7 Summit, world leaders were challenged to collectively commit to mandates for the use of SAF.
During discussions on the need for coordinated action to tackle climate change, SMI member Heathrow Airport said that aviation is a force for good, connecting people, cultures and enabling trade, but reducing carbon will be essential to protecting those benefits in a net zero world. It was proposed that the G7 should commit to at least a 10% use of SAF by 2030, supported by price incentives.
Heathrow CEO John Holland-Kaye told the meeting: “We all agree that stopping climate change is the biggest challenge facing our planet. The G7 has already shown leadership by agreeing a global minimum corporate tax, and if we can tap into that collective spirit to collectively commit to a mandate for at least 10% use of sustainable aviation fuel by 2030 and the right price incentives to use it, we will ensure our children can have the benefits of flying without the carbon cost.”
Velocys fully supports the use of appropriate policy measures to drive the incentivisation of both SAF production and usage, and believes our technology solution will play an essential role in driving forward aviation’s move to net zero.
Velocys CEO Henrik Wareborn has been interviewed by S&P Global Platts, providing an update on the Altalto project and commenting on the future of the UK market for sustainable aviation fuels (SAF).
In the article “Velocys sees UK green policies kick-starting commercial SAF project”, Henrik Wareborn made clear the need for policy support if the UK is to become a world leading SAF hub.
“Britain has to compete with the US and other countries for inbound investment and technology to build a domestic SAF industry,” he said, but noted that the UK government was acutely aware of the importance of keeping pace with international developments in SAF.
He discussed the benefits of producing fuel from municipal solid waste. Not only is the feedstock abundant, but avoiding landfill or incineration results in a negative cost. Velocys would not be competing for feedstocks such as vegetable oil which have been subject to price spikes in recent months.
Commenting on increasing market interest in SAF, he said, “The independent refiners, who are not encumbered with huge upstream crude oil assets, are now falling over themselves to see how they can integrate our technology into their processes, so they can reduce use of crude oil and increase processing of waste feedstocks instead”.
Velocys has a growing and diverse portfolio of international client projects and licensing agreements from the USA to Japan and Henrik Wareborn believes the production of SAF has a bright future in the decarbonisation of aviation.
The full S&P Global Platts article can be read here.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that copies of the 2020 annual report and accounts, together with the notice of Annual General Meeting, have been sent to all registered shareholders and is available for viewing on the Company’s website, www.velocys.com.
The Annual General Meeting will be held at 10.45 am on Wednesday 23 June 2021 at the Magdalen Centre, Robert Robinson Avenue, The Oxford Science Park, Oxford OX4 4GA.
In light of public health advice in response to the COVID-19 outbreak, including to limit travel and public gatherings, the Company strongly encourages all shareholders to submit their proxy, appointing the Chairman of the AGM as proxy. The UK Government has published its plans towards the removal, with effect from 21 June 2021, of the measures introduced and aimed at controlling the spread of COVID-19 (“COVID-19 Measures”). However, at the latest practical date prior to printing this Notice, there is no certainty that the COVID-19 Measures will no longer apply on 23 June 2021, the date of the AGM, and the AGM has therefore been arranged on the assumption that some or all of the COVID-19 Measures will continue to apply. Therefore the arrangements for the AGM are subject to change, possibly at short notice.
At the time of writing, the COVID-19 Measures are in place, and as a result, the AGM will be held as a closed meeting, and Shareholders will not be allowed to attend the AGM in person.
The situation regarding COVID-19 is constantly evolving, and the UK Government may change current restrictions or implement further measures relating to the holding of general meetings during the affected period. Any changes to the AGM (including any change to the location of the AGM) will be communicated to Shareholders before the meeting through our website at www.velocys.com and, where appropriate, by announcement made by the Company to a Regulatory Information Service.
Full information is set out in the notice of Annual General Meeting.
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)
Dan Norman (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)
Sarah Mather (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Field Consulting (General PR)
Rob Jeffery
+44 20 3697 7953
Notes to Editors
Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from municipal solid waste and residual woody biomass.
Velocys is at present developing two reference projects: one in Natchez, Mississippi, USA (incorporating Carbon Capture, Utilisation and Storage) and one in Immingham, UK, to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary reactor technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
New legislation has been introduced in the United States House of Representatives, intended to drive the production and uptake of sustainable aviation fuel (SAF).
The Sustainable Skies Act brought forward by Congressman Brad Schneider, along with Congressman Dan Kildee and Congresswoman Julia Brownley, establishes a $1.50 – $2.00 per gallon blender’s tax credit for SAF that achieves at least a 50% reduction in lifecycle greenhouse gas emissions compared to conventional jet fuel. The credit will increase from $1.50 per gallon by one cent for each additional percentage of lifecycle greenhouse gas emissions savings demonstrated above 50 percent.
A performance-based tax credit will encourage the production of SAF and help make the low-carbon alternative to conventional jet fuel more cost-competitive, while further incentivising the development and deployment of SAF providing improved emission reductions.
Such legislation will help enable sustainable flight to be realised globally over the coming years and will drive commercialisation of SAF technology. Our planned Bayou Fuels facility located in Mississippi is set to produce negative-emission transportation fuels. We welcome the positive policy platforms and regulatory environment that has been created which should help the United States to become a leading sustainable fuels nation.
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 2020 via the Investor Meet Company platform on Tuesday 25th May 2021 at 10:00am 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
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Field Consulting (PR)
Robert Jeffery
+44 20 7096 7730
Notes to Editors
Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from municipal solid waste and residual woody biomass.
Velocys is at present developing two reference projects: one in Natchez, Mississippi, USA (incorporating Carbon Capture, Utilisation and Storage) and one in Immingham, UK, to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary reactor technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
Velocys, the sustainable fuels technology company, is pleased to announce its final audited results for the year ended 31 December 2020.
Commenting on IAG’s commitment to power 10 per cent of its flights with SAF by 2030 (click here for full release), Henrik Wareborn, CEO of Velocys, said:
“Velocys welcomes our project partner IAG’s commitment to power 10 per cent of its flights with SAF by 2030. Our planned Altalto waste-to-jet-fuel plant will be the UK’s first SAF facility and could be fuelling transatlantic flights in just five years’ time with no need to modify aircraft or engines at all.
“Velocys high performance catalyst and reactor technology, with the integration of carbon capture, can generate negative-carbon-emissions SAF – essential for any Net Zero strategy.
“We are proud to be collaborating with an organisation who recognises the essential role SAF will play in significantly decarbonising the aviation sector by 2030 and achieving net zero emissions by 2050.”