Factsheet for investors

Here are some key points for investors to consider.

Velocys' technology is a route to net zero

  • Velocys is an international, UK-based sustainable fuels technology company.
  • The company 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.
  • The technology has been demonstrated at commercial scale and an end-to-end technology solution has been developed to produce fuels that significantly reduce greenhouse gas emissions and exhaust pollutants for aviation.
  • Two reference projects are currently being developed – Bayou Fuels in Mississippi, USA and Altalto Immingham in the UK. The drop-in fuels these will produce will significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport.
  • Velocys technology has been licensed to a range of commercial clients across the world, including in the USA and Japan.
  • 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.

WEF industry report on SAF published Nov 2020

The World Economic Forum’s report provides strong independent validation of SAF as the essential main route to decarbonising commercial aviation on a global scale.

View report.
On pages 26-27 the report details the abundance of Forestry Residues and Municipal Solid Waste as feedstocks for SAF.

Why do we need SAF?

  • We need SAF to achieve the goal of Jet Zero.
  • Aviation represents 2% of global emissions, 3% of US emissions and 7% in the UK.
  • Unlike the ground transport sector, aviation has no near-term alternative to liquid fuels. SAF is unique in its maturity and is the only energy solution that can address the industry’s emissions now.
  • SAF is also the only clear means of decarbonising medium and long-haul flights, which account for 80% of CO2 emissions from aviation.
  • It has seven times the energy density of state-of-art batteries.
  • It requires no changes to airframes, turbines or airport fuelling systems.
  • SAF is approved globally for use in commercial aircraft at up to a 50% blend.
  • SAF can achieve a 70% greenhouse gas reduction (or greater than 100% with Carbon Capture and Storage) and improves air quality.

Air quality advantages, including avoided CO2

  • SAF is technically synthesized Paraffinic Kerosene (SPK) meeting ASTM D7566, made from sustainable feedstocks
  • SAF made by this route burns more cleanly than conventional fuel:
    – Particulate matter emissions reduced by up to 90%
    – Sulphur content max 10 parts per billion
  • Blended with conventional fuel, SAF can be used in existing engines without any modifications:
    – Can be blended at up to 50% for commercial aviation worldwide

Two abundant feedstocks

Municipal solid waste

  • Currently c.11m tonnes pa sent to landfill in the UK
  • Altalto will divert 600kt/year from UK landfilling
  • Use in Velocys waste-to-fuels plants avoids costly landfill disposal
  • Generates significant gate fee revenues for our clients

Wood chips

  • Vast volumes available globally
  • High carbon content
  • Byproduct of forest management
  • Homogeneous quality
  • Sustainably sourced

Our technology

  • Our technology provides a commercially ready reactor and catalyst for Fischer-Tropsch synthesis of hydrocarbons
  • Developed in the Velocys laboratory and demonstrated at full scale in the real world
  • The reactor and catalyst allow the production of advanced biofuels from large, sustainable carbon sources such as household waste and forest residues
  • We have integrated our own technology into an end-to-end process involving demonstrated technologies at each stage:

 

  • Velocys supplies patented technology for Fischer-Tropsch (FT) hydrocarbon synthesis
  • Velocys’ commercial demonstration plant in Oklahoma, USA successfully converted landfill gas to fuel with over 6,000 hours of full-scale runtime

Our reference projects

Bayou Fuels, USA

  • A pioneering facility located in Mississippi, which will take waste woody biomass and transform it into negative-emission transportation fuels with the aid of Carbon Capture and Storage (CCS).
  • Waste from the Mississippi paper and lumber industries – woody biomass forest residue that would otherwise rot on the forest floor or contribute to forest fires – is to be converted into cleaner burning sustainable fuels for aviation or heavy-duty road transport.
  • In addition, Velocys’ agreement with Oxy Low Carbon Ventures, LLC (OLCV) will take these environmental benefits a step further through CCS; whereby Bayou Fuels CO2 will be captured before it enters the atmosphere.
  • This combination of CCS-ready technology and OLCV’s expertise in storing CO2 will enable the Velocys facility to produce net negative carbon intensity fuels.

Altalto Immingham, UK

  • Altalto Immingham is expected to be Europe’s first commercial scale waste-to-jet-fuel facility, located in North East Lincolnshire.
  • It is being developed in collaboration with British Airways.
  • The facility will take hundreds of thousands of tonnes per year of post-recycled household and commercial waste destined for landfill or incineration (including mixed plastic) and convert it into cleaner burning SAF.
  • Blended with conventional fuels, the product can be used in existing engines and transport pipelines.
  • The fuel can deliver a net CO2 saving of up to 70%, with the potential to achieve over 100% savings when Carbon Capture and Storage (CCS) infrastructure is available.
  • In June 2020 the Altalto facility received planning permission and, subject to further policy support and financing, it could be producing SAF from the middle of the decade.
  • The plant will produce enough to fuel the equivalent of over 1000 transatlantic flights every year.

 

Growing policy support on both sides of the Atlantic

  • Velocys is a member of the UK Government’s Jet Zero Council, which aims to provide policy support for the establishment of UK SAF production facilities, commercialising the industry by driving down production costs.
  • In its Ten Point Plan for a Green Industrial Revolution, the UK Government states its intention to take “immediate steps to drive the uptake of sustainable aviation fuels” and that “British innovation will unlock the world of sustainable fuels, turning these fossil fuel intensive journeys into lower carbon routes of transportation that allow the opportunity of global travel whilst also safeguarding our planet”.
  • In the US, the combination of federal and state support, notably the Low Carbon Fuel Standard (LCFS) in California, has created an environment favourable to investment in renewable fuels. The Biden administration is expected to strengthen support further.
  • New legislation brought forward by US Congress supports the transition to SAF. The Sustainable Skies Act will help enable and drive the commercialisation of SAF technology. Velocys’ Bayou Fuels facility in Mississippi is well positioned to produce negative-emission transportation fuels.

Investors contact

Oxford Office
Magdalen Centre
Robert Robinson Avenue
The Oxford Science Park
Oxford,
OX4 4GA
United Kingdom
Office: +44 1865 800821