Velocys lays out plans to grow sustainable fuel supply for aviation industry
Green aviation and heavy goods transport fuel company Velocys have published a business update detailing how they plan on growing their business exponentially. It comes in the face of huge worldwide investment in their industry.
Originally spun out from Oxford University, the sustainable technology company have ambitious plans in the sector. In the update to the City, released just prior to filing its Year End results next month, Velocys are talking up plans for a green jet fuel plant on the South Humber Bank that will cost £350m.
Chief executive of the company, Henrik Wareborn, had this to say about the future plans:
“The Velocys group is well positioned at the nexus of energy security and the net zero transition. Through the deployment of our patented demonstrated FT and catalyst technology, we provide decarbonisation solutions for hard-to-abate sectors such as commercial aviation, to supply negative carbon intensity fuels to airlines and others committed to net zero targets, while also reducing import dependency on fossil fuels.”
“We are eagerly anticipating clarity on government policy support from both the US and UK governments to provide sufficient long term revenue stability for biorefineries converting sustainable residues into renewable fuels. This is a condition for successful capital formation for both projects."
“We expect the UK Government to need some additional time to provide matching competitive incentives."
Velocys have also signed a 15-year lease on a US base in the Ohio city of Columbus. There the firm is planning to focus on and consolidate its microchannel reactor core assembly, tech licensing and integral catalysis services.
The plans also outline an investment of over £6m for building enhancements and core assembly automation. The overall plan being to construct 12 reactors in the next year. Further investment will come from the sale of a large asset, an undeveloped site at Ashtabula which was acquired as part of the business' purchase of Ponto Energy back in 2014.
The full update from Velocys can be read here.
READ MORE: Sustainable fuels company Velocys joins Zero Carbon Humber
