Velocys secures US$40MM of development capital and begins new chapter as a non-public sustainable aviation gas know-how firm.
Velocys, a number one sustainable aviation gas (“SAF”) know-how firm, proclaims 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 development traders, together with Carbon Direct Capital, Lightrock, GenZero and Kibo Investments, has infused Velocys with US$40 million of development capital.
The funds shall be used to speed up the supply of Velocys’ proprietary know-how to buyer initiatives while additional constructing its know-how management, scaling its manufacturing and enhancing the breadth and depth of the workforce’s experience.
Decarbonising aviation is a vital 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 assist 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 out there 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 development 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 know-how firm whose patented catalyst and micro-channel reactor platform present a scalable, versatile resolution notably appropriate for initiatives that produce SAF.
Velocys’ Fischer-Tropsch know-how is suitable with a number of undertaking sorts using numerous feedstocks, together with municipal stable waste, woody biomass, and CO2 & inexperienced hydrogen, and has demonstrated efficiency at industrial scale. Velocys’ expertise of integrating its know-how into an general scheme is extremely worthwhile to shoppers, 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 undertaking owner-operators all over the world. Velocys’ 52,500 sq. foot reactor facility will have the ability to produce an preliminary 12 reactors per yr, which is the standard requirement for the operation of a commercial-scale SAF biorefinery. There are additionally plans to ramp up capability of the power as demand for SAF grows.
Henrik Wareborn will proceed to steer Velocys’ administration workforce because the Chief Govt Officer. The brand new possession consortium – a world syndicate of local weather traders centered on harnessing know-how to speed up decarbonisation – has mixed experience, networks, and specialist scaling assist that may 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 essentially the most promising, scalable resolution to decarbonize aviation and to ship local weather influence the soonest.
“Velocys is a scarce provider with the know-how readiness, manufacturing capability, and management workforce to ship for SAF undertaking companions. We’re happy to be a part of this investor consortium and to assist Henrik and the Velocys workforce.”
Kevin Bone, Companion at Lightrock, stated:
We’re delighted to be partnering with Velocys because it takes the subsequent steps in its journey to changing into the main supplier of SAF options to the aviation business.
“This vital goal requires long-term backing with the requisite expertise of supporting industrial corporations as they search to grasp their potential. I’ve little question that this consortium is finest positioned to just do that.”
Could Liew, Funding Director at GenZero, stated:
Decarbonising the worldwide aviation business would require modern 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 assist the event of superior biofuel functions. By leveraging know-how to remodel waste supplies into sustainable aviation gas, Velocys is effectively positioned to play a key position in scaling using low-carbon fuels to pave the best way in the direction of net-zero aviation.”
Henrik Wareborn, Chief Govt Officer of Velocys, stated:
The deal secures the way forward for Velocys, our pioneering know-how and our business main expertise, permitting us to maintain our foot on the accelerator as we proceed to cleared the path in modern sustainable aviation gas options as we enter an inflection level for our business.
“For the previous twenty years Velocys has had a vital position within the improvement of reactors, know-how 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 development capital and begins new chapter as a non-public sustainable aviation gas know-how firm, February 12, 2025
