The Velocys waste recovery project is moving forward

In partnership with British Airways, Velocys is developing a facility that could convert up to 500,000 tonnes of municipal solid waste into fuel for planes and cars each year (see letrecycle.com narrative).

Velocys provides project development, engineering and “FTS technology” services.

In a business update released this week, the sustainable aviation fuel company said it had completed site engineering, a geotechnical survey and the integration of biogenic CO carbon sequestration.2.

Velocys said the East Coast cluster is expected to come online around the same time as its plant comes on stream in 2027, subject to the government funding both the Altalto project and the cluster.

Last month, it was announced that Velocys’ application to the Ministry of Business, Energy and Industrial Strategy (BEIS) to participate in the East Coast CCS cluster had met the government’s eligibility criteria (see letrecycle.com narrative).

This means the project has moved into Phase 2 of the assessment process to identify and sequence CCS clusters suitable for deployment in the mid-2020s.

In the business update, Velocys said it had benefited from a £1.9m Green Fuels Green Sky grant awarded to it by the Department for Transport in August 2021, “which more than covered our costs for essential site engineering and other site-related work through Q2/22”.

Investment

Meanwhile, Velocys and British Airways have also welcomed private equity investment manager Foresight Group LLP to the Altalto project.

On March 24, Velocys announced that Altalto Immingham Ltd, a subsidiary set up by the company to oversee the project, had sold its 100% stake in Rula Developments (Immingham) Limited (RDIL) to funds managed by Foresight for 9, £75million. RDIL owns the site for the project.

Altalto retains an option to buy RDIL up to £12.95million within three years.

In addition, Altalto has agreed to grant Foresight a right of first refusal to invest up to £100 million in the project, alongside British Airways and other future investors once full funding is required.

Henrik Wareborn, CEO of Velocys, said: “Velocys is delighted that Foresight is involved in the Altalto project, alongside British Airways. This is another step in bringing our SAF enabling technology solution to market.

Velocys previously said it hoped construction of the plant would begin in 2022 and the facility could produce fuel by 2025.

The company expects to announce its results for the year ending December 31, 2021 during the week of May 16.

Fuel

Velocys uses the Fischer-Tropsch (FT) process, a catalytic chemical reaction, to transform syngases such as carbon monoxide and hydrogen into liquid hydrocarbons, such as diesel or jet fuel.

Explaining his company’s work, Mr. Wareborn said: “Velocys Group is well positioned at the crossroads of energy security and the net zero transition.

“Through the deployment of our patented and proven FT and catalyst technology, we provide decarbonization solutions for hard-to-reduce sectors such as commercial aviation, to deliver carbon-negative fuels to airlines and others engaged in net zero targets, while reducing import dependency. on fossil fuels.

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