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Velocys secures US$40MM of progress capital and begins new chapter as a non-public sustainable aviation gas expertise firm.
Velocys, a number one sustainable aviation gas (“SAF”) expertise firm, broadcasts that it has begun a brand new chapter following the completion of its take-private on 18 January 2024. As a part of the transaction, a brand new consortium of progress traders, together with Carbon Direct Capital, Lightrock, GenZero and Kibo Investments, has infused Velocys with US$40 million of progress capital.
The funds will probably be used to speed up the supply of Velocys’ proprietary expertise to buyer initiatives while additional constructing its expertise management, scaling its manufacturing and enhancing the breadth and depth of the group’s experience.
Decarbonising aviation is a essential local weather problem given the 800 megatonne annual carbon footprint from airline journey.[1] Velocys expects demand for sustainable aviation gas to speed up given the confluence of regulatory help and better readiness ranges of drop-in gas applied sciences.
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For example, new European Union (“EU”) guidelines would require suppliers to make sure that 2% of gas made accessible at EU airports is SAF in 2025, 6% in 2030, 20% in 2035 and 70% in 2050.[2] Airways are additionally anticipated to drive the exponential progress in demand for SAF. In 2023, greater than 490,000 flights have been partially powered by SAF, from simply 500 in 2016.[3]
Velocys is a expertise firm whose patented catalyst and micro-channel reactor platform present a scalable, versatile answer significantly appropriate for initiatives that produce SAF.
Velocys’ Fischer-Tropsch expertise is suitable with a number of mission sorts using various feedstocks, together with municipal strong waste, woody biomass, and CO2 & inexperienced hydrogen, and has demonstrated efficiency at business scale. Velocys’ expertise of integrating its expertise into an total scheme is very precious to purchasers, permitting them to maximise lifecycle carbon financial savings.
Velocys has invested to scale its reactor facility in Plain Metropolis, Ohio, to make sure a secure provide of reactors for supply to SAF mission owner-operators around the globe. Velocys’ 52,500 sq. foot reactor facility will have the ability to produce an preliminary 12 reactors per 12 months, which is the standard requirement for the operation of a commercial-scale SAF biorefinery. There are additionally plans to ramp up capability of the ability as demand for SAF grows.
Henrik Wareborn will proceed to guide Velocys’ administration group because the Chief Govt Officer. The brand new possession consortium – a worldwide syndicate of local weather traders targeted on harnessing expertise to speed up decarbonisation – has mixed experience, networks, and specialist scaling help that can higher equip Velocys to contribute meaningfully to the decarbonisation of the aviation business.
Josh Dienstag, Chief Funding Officer of Carbon Direct Capital, stated:
We believedrop-in fuels are probably the most promising, scalable answer to decarbonize aviation and to ship local weather influence the soonest.
“Velocys is a scarce provider with the expertise readiness, manufacturing capability, and management group to ship for SAF mission companions. We’re happy to be a part of this investor consortium and to help Henrik and the Velocys group.”
Kevin Bone, Accomplice at Lightrock, stated:
We’re delighted to be partnering with Velocys because it takes the subsequent steps in its journey to turning into the main supplier of SAF options to the aviation business.
“This essential goal requires long-term backing with the requisite expertise of supporting industrial corporations as they search to understand their potential. I’ve little doubt that this consortium is finest positioned to do exactly that.”
Might Liew, Funding Director at GenZero, stated:
Decarbonising the worldwide aviation business would require progressive options that may be adopted with ease and at scale.
“That is the place Velocys’ pioneering Fischer-Tropsch reactor is related, with its modularity and effectivity to help the event of superior biofuel functions. By leveraging expertise to remodel waste supplies into sustainable aviation gas, Velocys is nicely positioned to play a key position in scaling using low-carbon fuels to pave the way in which in direction of net-zero aviation.”
Henrik Wareborn, Chief Govt Officer of Velocys, stated:
The deal secures the way forward for Velocys, our pioneering expertise and our business main expertise, permitting us to maintain our foot on the accelerator as we proceed to cleared the path in progressive sustainable aviation gas options as we enter an inflection level for our business.
“For the previous twenty years Velocys has had a essential position within the improvement of reactors, expertise and processes which allow the environment friendly manufacturing of decrease carbon SAF, and we and our new companions are excited to see what the subsequent twenty will deliver.”
Velocys secures US$40MM of progress capital and begins new chapter as a non-public sustainable aviation gas expertise firm, February 12, 2025