Velocys, a sustainable fuels technology business, signed a deal with a European renewable fuels developer on Tuesday to provide preliminary engineering services for a project that is still in the planning stages.
While the revenue for this stage of the project is negligible and the project’s progression to material revenues is yet to be determined, the agreement expands the company’s customer base and demonstrates Velocys’ ability to move its pipeline of potential global customers toward commercial contracts.
While the deal would generate little money, Velocys claims it will “extend” its customer base. This is also in line with Andy Bensley’s goals for the company’s business development division.
British Airways (BA) has agreed to extend the UK Altalto project Joint Development Agreement and the Option Agreement for BA to buy 50% of Altalto Ltd by one year, until March 31, 2023.
The original option was signed on May 12, 2020, and it was extended for the first time on March 30, 2021.
Velocys provides a technology solution to its customers that enables the commercial-scale synthesis of sustainable synthetic fuels from a variety of waste sources, including municipal, commercial, and forestry waste.
The only commercially accessible alternative to fossil aircraft fuels is sustainable aviation fuel or SAF.
President Biden recently emphasised the necessity of sustainable synthetic fuels derived from bio-based feedstocks as part of the US aviation decarbonisation plan.
Increased demand for Velocys technology to ramp up commercial-scale production of sustainable synthetic fuels to speed the global clean energy transition and boost host country fuel independence is growing the company’s customer pipeline.
Velocys
Velocys is a startup that develops sustainable fuels technology and is traded on the London Stock Exchange’s AIM market with “VLS.L” as the ticker symbol.
For 18 years, the company has developed and demonstrated its Fischer-Tropsch technique, which allows for the synthesis of drop-in fuels from a variety of waste sources.
The group is actively working on initiatives in the United States and the United Kingdom to develop fuels that reduce greenhouse gas emissions in aviation and transportation.
Velocys’ revenue derives from licencing its technology and providing technical and project services to its reactors and catalysts based on its unique expertise.
The company focuses on providing end-to-end technology solutions to partners, site owners, and third-party developers globally.
Velocys’ shares were trading down 0.25% to 6p in late afternoon trade on Tuesday.