Velocys is among a handful of key industry figures to give its take on the year ahead in the latest edition of leading industry publication, Biofuels International.
Velocys’ CEO, Henrik Wareborn, makes clear that 2021 will be a crucial year in the development of the UK’s Sustainable Aviation Fuels (SAF) industry, particularly in the context of COP26. He argues that “as hosts of the COP26 UN climate summit taking place in November, the UK has a unique platform and once-in-a-generation opportunity to demonstrate global leadership on tackling aviation emissions.”
Pointing to the progress that was made during 2020 with planning permission granted for the Altalto Immingham plant and the formation of the Jet Zero Council, 2021 is the time, he says, to “bring forward the necessary policy to match the ambition shown in 2020”.
This includes establishing certainty on the price that SAF producers can obtain for delivering the benefit of avoided carbon emissions, along with measures to ensure the long term market for the fuels.
Henrik Wareborn concludes, “This is the year for governments across the globe to take action and we look forward to the role the UK can play in spearheading this international movement.”
The full article can be read here.
Velocys took part in Tammy Klein’s Transport Energy Strategies podcast to discuss the future of Sustainable Aviation Fuels (SAF) and the role that Velocys is playing in leading industry efforts on both sides of the Atlantic.
Dr Neville Hargreaves, Vice President, Waste to Fuels, and Drew Miller, Project Finance Director, at Velocys talked to Tammy Klein about the company’s Bayou Fuels project in the USA and its Altalto plant in the UK.
Discussing how the SAF market will develop over the coming decade, Klein commented that policy favourability for the sector seems higher than it has ever been. Dr Hargreaves agreed, pointing to the clear direction in Europe for SAF mandates. He went on to emphasise the important role a ‘Contracts for Different’ approach could play in the UK market by stimulating investment into the sector with the potential to “advance the rollout of the SAF market by many years”.
Drew Miller spoke about regulatory developments in the US where there is increasing discussion around SAF tax credits through the low carbon fuel standard. On the idea of a national Low Carbon Fuel Standard (LCFS), he said, “I expect we’ll see more of a patchwork on the state level LCFS, but I would not discount a national LCFS. The whispers keep growing and don’t go away”.
To listen to the podcast in full, please click here.
Velocys has been featured in the Wall Street Journal in an article exploring how companies are working to turn household waste into low emissions fuels.
In the piece, How to transform garbage into greener fuels, Velocys’ planned Altalto Immingham plant is detailed, including the aim of producing 60 million litres of Sustainable Aviation Fuels (SAF) annually when commercial operations begin in 2025.
The article also notes that emissions from the SAF produced at Altalto are 70% lower than regular jet fuel and that with carbon capture technology, the SAF produced can have a net positive impact on the environment.
The full WSJ article can be read here.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce the signing of a collaboration agreement with Toyo Engineering Corporation (Toyo) to start the development of their commercial projects to produce Sustainable Aviation Fuel (SAF) and other renewable fuels in Japan.
The agreement follows on from the successful work already conducted in 2020 between Velocys and Toyo at the biomass-to-jet-fuel demonstration facility in Japan. This included the provision of technical engineering and operational services, as well as the completed construction and delivery of Velocys’ Fischer-Tropsch (FT) technology.
As part of this new collaboration the parties have engaged in the preliminary engineering evaluation of the FT island in a joint effort to deliver a commercial scale biomass-to-jet fuel project in Japan.
As previously announced, Velocys will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for the commercial plant in Japan. An advance deposit of $4 million was received in 2019 of which $3.5 million remains in escrow, which will be offset against future revenues.
In addition, the collaboration will extend to include the supply of the Velocys FT technology in other SAF, e-Fuels and biomass-to-liquids projects in the Japanese market. This will be led by Toyo, including other partners introduced by Toyo. Subsequent project execution for SAF, e-Fuels and other renewable fuel projects will be delivered by Toyo and their partners, potentially in Japan and other regions, with Velocys providing technical engineering and operational services around the FT technology.
Henrik Wareborn, CEO of Velocys, said:
“Velocys has a long-standing relationship with Toyo Engineering and today’s collaboration agreement further supports this commitment. It indicates that Velocys is now firmly in the phase of delivering our commercial scale technology to our clients’ commercial projects. Making our first steps into commercial delivery in the Japanese market strengthens our position in an additional geography to North America and Europe.
“Our clients recognise the importance of our here-and-now technology solution for commercial scale projects, not only greatly reducing Scope 3 life-cycle carbon emissions but also resulting in synthetic fuels with air quality advantages over conventional fuels. We look forward to working with Toyo and their partners to enable the supply of modern low greenhouse-gas synthetic fuels to the Japanese market.
“Whilst there is no immediate material impact on revenue, we are delighted that the collaboration provides a pathway to commercialisation in Japan.”
Haruo Nagamatsu, CEO of Toyo, said:
“After the successful collaboration with the demonstration plant in Japan, we are pleased to be moving onto the next stage of the plan. The commercial deployment of the integrated technology that has been demonstrated during 2020, including the Velocys FT Technology, is now underway with the first stages of the engineering designs. We are pleased to be working with Velocys and their technical team and look forward to continuing our relationship.”
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Certain information contained in this announcement would have constituted 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)
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)
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’ Dr Neville Hargreaves has given an update on the status of the Altalto project during an interview with Andy Comfort on BBC Radio Humberside.
Dr Hargreaves spoke of the strong partnership between Velocys and co-investor British Airways, along with the significant support for sustainable aviation fuels (SAF) amongst the wider aviation sector. From airports and engine manufacturers to aircraft manufacturers and airlines, there is recognition that “the whole industry needs to make this transformation.”
There was also discussion of the attractive investment potential presented by SAF, on which Dr Hargreaves noted, “This is a very attractive space for investors, it’s so aligned with the transition to low carbon energy – portfolios need projects like this in order to deliver what investors want”.
Dr Hargreaves concluded by saying that this year’s COP26 climate summit should provide further impetus for the Government to support the development of the UK’s domestic SAF industry.
BBC Radio Humberside interview (BBC Sounds):
Velocys plc (VLS.L) announces that, by mutual consent of the parties, Shell International Petroleum Company Limited (“Shell”) has withdrawn from the Altalto Joint Development Agreement.
The Altalto project has no immediate funding calls and will continue according to its existing development plan. Velocys and British Airways plc (“British Airways”) will continue to work together in order to secure finance for the Altalto Immingham plant, and will continue the discussions with potential sources of finance for the project, which have been underway for several months and indicate strong interest in this sector. Velocys, British Airways and Shell are continuing to work with HM Government on policy development to support Sustainable Aviation Fuel (“SAF”) production in the UK.
Velocys and British Airways are grateful for Shell’s support during the initial stages of the Altalto project. As the project progresses, Velocys, British Airways and potentially other new partners will focus on the next stages. Preparations are underway to apply for significant government funding for the Immingham project. Whilst there is no guarantee that such an application would be successful, the Company believes that the project is well placed to achieve this.
Following the changes above, Shell will no longer have an option over shares in Altalto Limited, nor any rights or obligations in relation to the Altalto project. There is no direct financial impact on Altalto or Velocys as a result of these changes.
Henrik Wareborn, Velocys CEO, said:
“We are looking forward to moving Altalto Immingham to the next stage of development in 2021. Altalto Immingham is the most advanced commercial SAF project in the UK and is ready to take advantage of the strong push from both Government and industry for the decarbonisation of aviation, especially using waste feedstocks.”
Sean Doyle, British Airways CEO, said:
“Sustainable Aviation Fuel (SAF) is vital to the decarbonisation of aviation and to helping us achieve our net zero target. The formation of the Jet Zero Council and the recent launch of its Sustainable Aviation Fuels Delivery Group are testament to the importance that the Government attaches to SAF. We are excited to continue to work with Velocys, with the support of Government and other private-sector partners.”
Matthew Tipper, Shell VP New Fuels, said:
“Shell are pursuing multiple opportunities across our global portfolio. On this occasion, we have decided to focus our resources on other lower-carbon fuels opportunities which leverage our own technology. We will continue to work with the aviation industry and the UK Government, as part of the Jet Zero Council, to help decarbonise UK aviation. We wish Altalto every success in the future.”
– Ends –
Certain information contained in this announcement would have constituted 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)
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)
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 technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
HRH The Prince of Wales has launched the Terra Carta – the Earth Charter – as the basis of a recovery plan that puts nature, people and planet at the heart of global value creation and aims to provide a roadmap to 2030 for businesses to move towards a sustainable future. The charter will serve as the guiding mandate for the Prince’s Sustainable Markets Initiative and seeks to put sustainability at the heart of the private sector.
In section 2, Redesigning Net Zero & Nature – Positive Transition, article 5, Game Changers and Barriers, the charter notes, “We need to identify, showcase and invest in the game-changing technologies and solutions that are emerging around the world”. Within this, “Sustainable Aviation Fuels” (SAF) are given as an example of “game-changing sustainable innovations and investments to be explored”.
SAF is also referenced in section 5, Reinvigorating Innovation, article 10, Catalyse Science, Technology and Innovation. “We must urgently invest in STEM, innovation and R&D at scale with a focus on sustainable solutions, alternatives and industries”, says the charter, “in support of game-changers (article 5, above) and in partnership with academic and research institutions, encouraging accelerated investment into STEM, Innovation and R&D” in areas including “Sustainable Aviation Fuels”.
In addition to explicit support for SAF, the charter also gives backing to supplementary measures supported by Velocys including, “Exploring the potential of Carbon Capture Use and Storage to reduce emissions and to help drawdown legacy carbon in the atmosphere”.
Launched at the One Planet summit in Paris, businesses including Heathrow have already given their support to the charter, which aims to raise £7bn to invest in nature by 2022 through the newly created Natural Capital Investment Alliance.
The Terra Carter can be read in full here.
Velocys plc (VLS.L) is pleased to announce the appointment of Panmure Gordon (UK) Limited as nominated adviser and joint corporate broker to the Company, and Shore Capital Stockbrokers Limited as joint corporate broker, both with immediate effect.
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)
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 plants currently in construction and development.
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 technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.
In an op-ed feature in Biofuels International titled “Full Velocys-ity”, Dr Neville Hargreaves, Velocys’ VP Waste to Fuels, gives a timely update on the work the company is undertaking in the UK.
The piece notes the viability of Sustainable Aviation Fuels (SAF) as a route to decarbonisation of the aviation sector. He also describes the development of Velocys’ UK flagship project, Altalto Immingham. This planned plant will enable the production of ‘drop-in’ fuels that require no changes to aircraft or airport infrastructure and result in a 70% reduction in lifecycle carbon emissions.
The importance of the UK Government’s Jet Zero Council is also discussed. It has created a “shared sense of ambition” that is “hugely important and will inform both government policy and business strategy ahead.”
Dr Hargreaves concludes that “life-cycle net zero aviation is absolutely realistic and Velocys represents the here-and-now solution of making it a reality”. With increasing momentum from government and industry alike in their support for SAF as a means of achieving Net Zero, Velocys remains at the forefront of this fast-developing industry. Altalto is expected to be the UK and Europe’s first waste-to-jet-fuel facility.
The full article can be read here.
Velocys is pleased to announce the appointment of Helen Lillistone as the Group Financial Controller based in the Oxford office headquarters.
Helen was formerly Head of European Finance Operations for Shire plc, a UK FTSE 100 and US listed Biotech firm, where she was responsible for managing finance and accounting operations in Europe. Due to the dual listing, she has experience of both US and European financial reporting, accounting and taxation. Her expertise also includes integrating mergers and acquisitions, implementing financial systems and finance team transformation to shared services. Thus, bringing to Velocys wide ranging financial experience from a high growth global organisation.
She began her career at Crowe LLP, is a qualified chartered accountant and graduated from the University of Southampton with a BSc in Economics.
Andrew Morris, Velocys CFO, said:
“We are delighted Helen has joined Velocys and at a time when the company is progressing and developing significantly. Helen brings with her a wealth of knowledge and expertise, spanning a number of years including twenty of those at a UK FTSE 100 and US listed biotech firm. Therefore, she has an in-depth understanding of both UK and US financial systems and holds an extensive operational skill set at senior level.”