TIDMVLS
RNS Number : 8428N
Velocys PLC
25 January 2023
25 January 2023
News Release
Velocys plc
("the Company")
Velocys and Bechtel collaborate on SAF project delivery solution
for global markets
Developing the plans for innovative sustainable fuel production
facilities in the UK and the US
Velocys plc (VLS.L), the sustainable fuels technology company,
is pleased to announce the execution of a master relationship
agreement ("MRA") with Bechtel Limited ("Bechtel"), one of the
world's most respected engineering companies. The MRA sets out a
route map for the parties to collaborate with each other with the
objective of developing an EPC execution model for the Company's
sustainable fuels projects.
This collaboration will initially focus on Velocys' two main
reference projects - Altalto Project in Immingham, UK and Bayou
Fuels Project in the US - and the recently announced e-Alto
power-to-liquids project in the UK, all subject to the terms of
future contracts. However, the MRA also covers other third-party
projects that may be introduced by either Bechtel or Velocys.
Under a separate continuing technical services agreement,
Bechtel is providing front end project engineering and other
technical services to support the development of Velocys'
Sustainable Aviation Fuel ("SAF") project portfolio. In particular
Bechtel is preparing to commence work on delivery of the Altalto
Project Front-End Engineering and Design phase ("FEED") following
the recent UK government grant funding of up to GBP27 million
awarded to Velocys.
Henrik Wareborn, CEO of Velocys, said:
"The master relationship agreement with Bechtel is an important
step towards the provision of world class EPC capability and
capacity to the expanding Velocys project portfolio. Bechtel is one
of the world's most respected engineering companies. Working with
Bechtel will give added value to current and future clients with
respect to successful project delivery."
Paul Marsden, President, Bechtel Energy, said:
"We are committed to supporting revolutionary energy transition
projects designed to reduce global carbon emissions. As part of
Bechtel's portfolio in sustainable fuels, we are excited to
collaborate with Velocys and look forward to realising the
potential of these facilities to introduce sustainable fuel options
for global markets."
Certain information contained in this announcement may
constitute inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
---------
For further information please refer to the Notes to Editors or
please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO
Lak Siriwardene, Director of Communications
& Sustainability +44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint
Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance) +44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint
Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory) +44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly +44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton +44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels
technology company, traded on the AIM, providing customers with a
technology solution to enable the production of negative Carbon
Intensity synthetic, drop-in fuels from a variety of waste
materials. Synthetic fuel is the only commercially available,
permanent alternative to fossil aviation fuels. The Velocys
technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are
designed to accelerate the adoption and standardise the Velocys
proprietary Fischer Tropsch (FT) technology with an integrated end
to end solution, including renewable power and carbon
sequestration.
Velocys is enabling commercial scale synthetic fuel production
in response to the clean energy transition, with significant
additional positive air quality impacts.
www.velocys.com
Altalto Project, Immingham, UK
The Altalto Immingham Project is a joint development between
Velocys and British Airways. The plant will have a nameplate
capacity of approximately 80 million litres/year of SAF and
naphtha, with negative Carbon Intensity, made from residual
commercial and municipal solid waste. Altalto Immingham will also
produce a concentrated stream of carbon dioxide ready for
sequestration. In December 2022, Altalto was awarded a grant of up
to GBP27 million by the UK Department for Transport ("DfT"),
subject to matched funding, to deliver the Front End Engineering
Design stage of the project, ahead of construction to begin in
2025.
Bayou Fuels Project, Natchez, Mississippi , US
This plant is expected to produce approximately 125 million
litres/year of sustainable aviation fuel (SAF) and naphtha, with
negative Carbon Intensity, made from woody biomass residues from
the pine plantations in the counties surrounding Natchez,
Mississippi. The project includes the use of renewable power and
sequestration of the plant's by-product carbon dioxide. The
sustainable fuels produced from the facility will meet all
requirements and regulations to be sold in the US generating
Federal and State credits under RFS-2 and the relevant State Low
Carbon Fuel Standards.
The Bayou Fuels project has a 15-year fixed price offtake
agreement with Southwest Airlines, which, together with a further
MOU for a 10-year fixed price offtake, account for in aggregate 100
per cent of the SAF produced and underwrites a floor on certain
credits.
e-Alto Project, UK
Velocys was also awarded a grant of up to GBP2.5 million by the
DfT for the e-Alto project in December 2022. This allows Velocys
and its partners to conduct feasibility, technical validation, site
selection and pre-FEED engineering for a plant to produce SAF from
carbon dioxide and hydrogen made using renewable (decarbonised)
electricity , in the UK.
About Bechtel
Bechtel is a trusted engineering, construction and project
management partner to industry and government. Differentiated by
the quality of our people and our relentless drive to deliver the
most successful outcomes, we align our capabilities to our
customers' objectives to create a lasting positive impact. Since
1898, we have helped customers complete more than 25,000 projects
in 160 countries on all seven continents that have created jobs,
grown economies, improved the resiliency of the world's
infrastructure, increased access to energy, resources, and vital
services, and made the world a safer, cleaner place.
Bechtel serves the Energy; Infrastructure; Manufacturing &
Technology; Mining & Metals; and Nuclear, Security &
Environmental markets. Our services span from initial planning and
investment, through start-up and operations.
www.bechtel.com
--Ends-
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