Velocys highlights 2021 achievements in year-end financial report

By Erin Voegele | May 19, 2022

Velocys plc released 2021 financial results on May 17, discussing progress made towards the development of its proposed biorefinery projects in the U.S. and U.K. Strong demand for sustainable aviation fuel (SAF) is expected to drive company growth.

“Velocys offers a decarbonization solution to the aviation industry and is now firmly in the technology delivery and commercialization phase of our growth strategy,” said Henrik Wareborn, CEO of Velocys. “We have a growing pipeline of new customer opportunities spanning multiple continents, which have developed in response to client specific net zero targets in countries that are ahead of the game on mandates and policy incentives.

“Our commercially demonstrated patented technology enables an alternative to fossil jet fuel with an ultra-low carbon intensity,” he added. “In addition, our production pathway generates fuels with much lower sulphur oxide and particulate matter emissions. Synthetic drop-in fuel is the here and now solution, which requires no modification to aircraft or airport infrastructure.

“The synthetic fuel enabled by our technology will greatly benefit our customers, industry and society.”

In its report, Velocys discussed progress made on the Bayou Fuels reference project in Missississippi. That facility is expected to produce 132 MMly (34.87 MMgy) of SAF from wood biomass feedstock. In November, Velocys announced offtake arrangements for the facility’s full production with Southwest Airlines and AIG. Those agreements underpin the financing of the construction capital for the project, according to the company.

Work also continued on the development of Velocy’s Altalto project in the U.K. That 80 MMly facility is expected to produce SAF from municipal solid waste (MSW) feedstock. British Airways is the primary commercial sponsor for the Altalto project.

Through its collaboration with TOYO, Velcoys technology was also selected for an e-fuels project under development in Japan. TOYO has begun the advanced engineering and design phase of that commercial project, which will also convert forestry waste into SAF.

Velocys reported revenue of £8.3 million for the full year 2021, compared to £200,000 reported for 2020. Operating loss was £9 million, compared to an operating loss of £8.8 million the previous year.

A full copy of Velocys’ 2021 report is available on the company’s website.