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.
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, the leading technology provider of Fischer Tropsch decarbonization solutions, is excited to announce that Matthew Viergutz has joined Velocys as Chief Executive Officer. Mr. Viergutz will be based out of the company’s Houston, Texas office and replaces Henrik Wareborn, who departed to pursue new opportunities.
Mr. Viergutz has over 25 years of experience in process licencing, holding various sales, business and leadership roles at Monsanto, MECS Inc., DuPont, and Sulzer. He also served as CEO of Butamax Advanced Biofuels, a joint venture between DuPont and BP that successfully commercialized a new biofuels platform. “I am thrilled to be joining a leading Fischer Tropsch technology company with a rich tradition of innovation and reactor technology scale-up,” said Mr. Viergutz. “Velocys operates in an exciting and growing market space and is supported by world-class investors,” he continued. “I look forward to accelerating the deployment of our technology to our customer base as we work to reduce greenhouse gas emissions across the globe.”
This key leadership hire is another milestone in Velocys’ new chapter as a private, growth company. In January of 2024, a consortium of growth and climate investors, including Carbon Direct Capital, GenZero, and Lightrock, took Velocys private and injected over $40MM of fresh growth capital.
Velocys’ patented catalyst and micro-channel reactor platform provides a scalable, flexible solution especially suitable for projects that produce sustainable aviation fuel. Velocys’ Fischer-Tropsch technology is compatible with multiple project types employing diverse feedstocks, including municipal solid waste, woody biomass, and CO2 & green hydrogen, and has demonstrated performance at commercial scale.
“Matthew brings entrepreneurial drive, industry acumen, and a track record of commercial execution,” commented Josh Dienstag, Chief Investment Officer of Carbon Direct Capital. “We are delighted to welcome Matthew to the company especially at a time when demand for sustainable aviation fuel – and the key technologies that underpin its production – is accelerating.”