Velocys shares gained 1.7% to 5.7p in early morning trading on Tuesday, after the firm reported a revenue surge to £8.3 million in its 2021 results compared to £200,000 year-on-year.
The sustainable fuels technology company highlighted administrative expenses of £13.3 million against £9.2 million the previous year, alongside an operating loss of £9 million from £8.8 million.
Velocys confirmed a net assets growth to £29.7 million at 31 December 2021 compared to £13.1 million, and a net cash level of £25.5 million against £13.1 million.
The group successfully raised £26.2 million, before expenses, through a Placing and Open Offer in December 2021.
The company noted a commercial offtake agreement with Southwest Airlines and a Memorandum of Understanding (MoU) with IAG for all the Sustainable Aviation Fuel and linked credits for the Bayou Fuels project, alongside a collaboration with TOYO, which is set to see Velocys’ Fischer Tropsch technology used for an e-fuels project commissioned by the Japanese government.
The company noted a high level of pride in its alternative fuels projects, with the group spurring on future low-carbon developments in aviation technologies.
“Our commercially demonstrated patented technology enables an alternative to fossil jet fuel with an ultra-low carbon intensity,” said Velocys CEO Henrik Wareborn.
“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.”
Additional highpoints for Velocys in 2021 included a grant awarded by the UK government to Velocys and British Airways for up to £2.4 million from the administration’s Green Fuels Green Skies grant scheme, and the appointment of Koch Project Solutions to supply pre-FEED/FEED support, along with a potential EPC contract for the Bayou Fuels project.
Velocys added that it had a growing pipeline of customer opportunities, leading to an expanded selection of technology licensing opportunities across three continents.
“Velocys offers a decarbonisation solution to the aviation industry and is now firmly in the technology delivery and commercialisation phase of our growth strategy,” said Wareborn.
“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.”