Our support for a greener and more sustainable future comes through the provision and delivery of our technology which is helping to decarbonise the aviation sector, currently one of the major contributors to global carbon dioxide emissions.
Our commitments extend beyond our technology with the recognition that we need to identify, mitigate and manage our ESG related risks and opportunities. This requires the implementation of a sustainability strategy that is appropriate for a business of our size and adheres to best practice guidelines.
Given the rapidly developing nature of our environmental footprint, we believe it is important to maintain a flexible approach that allows our reporting to evolve in-line with our operational expansion.
We intend to invest in the necessary systems and processes over the course of the next few years and provide further disclosure around our net zero transition plans.
PHILIP SANDERSON, CHIEF FINANCIAL OFFICER
Our mission is to provide best-in-class technology that supports commercial scale, non-fossil fuel production and help drive decarbonisation and the move towards a net-zero future for our planet.
Pre-pandemic air traffic is forecast to double from 9 billion trips per year to 20 billion by 2040 and the aviation sector is forecast to account for 20% of global emissions by 2050.
Velocys’ technology adds significant IP and optimisation to the long-established Fischer-Tropsch production process which overcomes specific temperature and pressure challenges, thus enabling sustainable aviation fuel (SAF) to be produced safely and effectively at commercial scale.
Velocys’ technology will help our client’s meet industry and government carbon reduction targets while also supporting national fuel security initiatives. Furthermore, the produced fuel is cleaner burning than fossil-derived equivalents, with greatly improved air quality that has much lower sulphur oxide, nitrogen oxide and particulate matter emissions when combusted in conventional engines and turbines.
The fuels generated by our customers come from a variety of sustainable and responsibly sourced non-fossil-based solid feedstocks (woodchips and residual waste).
The feedstocks are abundant, and their use avoids adverse environmental impacts, such as landfill and the decomposition of non-processable wood on forest floors.
The synthetic fuel from our clients can be made with a negative carbon intensity, measured on a lifecycle basis. Our clients have the potential to generate negative carbon intensity fuels through the gasification of the cellulosic waste feedstock.
This is achieved via the use of thermal energy coupled with the capture and sequestration of carbon dioxide emissions.
We recognise a shared responsibility in the conduct of our business to minimise the depletion of natural resources, reduce waste and lessen our own contribution to climate change.
There is an understanding that sustainability encompasses human and social aspects as well as environmental ones.
We monitor our manufacturing operations including catalyst, reactor, and supply chain, as well as our administrative operations for use of energy, travel, water, waste and usage of material resources.
In order to reduce direct CO2 emissions, we restrict business air travel and through the recent experience of COVID-19 pandemic we have found that replacing travel for face to face meetings with video conferencing is more time and cost efficient whilst also reducing our carbon footprint.
The Company encourages equality, diversity and inclusion amongst its workforce.
Working at Velocys provides each employee with access to unique technologies, projects and facilities along with the opportunity to contribute and collaborate within an inclusive setting. Velocys is an equal opportunities employer and believes in respect, empowerment and creating an environment for each employee to reach their full potential.
This is supported by competitive compensation and generous employee benefit packages. Our recruitment and talent management practices ensure Velocys has a gifted and diverse resource pool to help meet its business needs.
On 31 December 2022, Velocys had 39 employees, 36% of which were female (2021: 33%).
In 2022, Velocys maintained its record of no Lost Time Accidents (“LTA”) for each of its UK and US sites, including no reportable injuries or illnesses. The Velocys sites in the US have logged over 223,410 operating labour hours without an LTA since July 2018.
The UK site continues to operate without any lost time, bringing the total number of operating labour hours without an LTA to over 454,812. Velocys policies and procedures ensure regulatory compliance (OSHA in the US and HSE in the UK), including its safety policy and response programme for the escalation of any health and safety related issues.
Much of how we approach the company’s sustainability is driven by the UN’s 17 Sustainable Development Goals (“SDGs”) which encompass a blueprint for a more sustainable future.
These goals guide us as to how we can make a difference and although we are a relatively small company, we consider ourselves to be in the process of making meaningful contributions to a number of these SDGs and the UN 2030 Agenda for Sustainable Development.
Below we highlight some examples of our alignment.