Velocys plc released interim results for the first half of 2021 on Sept. 23, reporting improved financial performance and providing an update on the development of its reference projects in the U.S. and U.K. and a commercial project under development in Japan.  

“Our interim results demonstrate that Velocys has achieved an important milestone, recognizing £8.2 million of revenue and £3.3 million gross profit in HY2021 from our first major commercial customer contract,” said Henrik Wareborn, CEO of Velocys. “The downwards trend in our operating loss continued, declining to £2.0 million in HY2021 from £2.6 million in HY2020 (£5.2 million in HY2019 and £11.0 million in HY2018). This shows that the company is controlling its spending well whilst also delivering to our customers and progressing our two reference projects towards funding for their FEED stages and then onto financial close.

“At the same time, I am pleased with the safe and efficient operational performance of Velocys despite the challenges of COVID-19, and excited about the sustainable fuels market dynamics and the business development opportunities available to us for the short, medium and long term.”

According to Velocys, the Bayou Fuels project under development in Mississippi is currently advancing multiple pre-FEED workstreams. Project financing for the FEED stage of the project is expected to occur during the first half of next year. The company noted that the Biden administration set an ambitious goal earlier this month to increase the production of sustainable aviation fuel (SAF) to 3 billion gallons per year by 2030. That initiative is expected to benefit development of Velocys’ Bayou Fuels project, which is expected to produce 33 MMgy of advanced biofuels from woody biomass feedstock. Velocys previously indicated it is in the process of applying for a federal loan guarantee to support development of the plant.

Work is also progressing on the development of the Altalto project in the U.K. That proposed project is being developed in collaboration with British Airways and is expected to produce 20 MMgy of jet fuel and naphtha from municipal solid waste (MSW) feedstock. The U.K. government in August awarded Velocys a £2.4 million grant through its Green Fuels Green Skies program to support the project. 

Velocys also recently signed a collaboration agreement with Toyo Engineering in Japan to start development of a commercial-scale SAF project. In addition, Velocys was selected by Toyo to supply a compact Fischer Tropsch (FT) reactor for a demonstration project that aims to convert carbon dioxide and hydrogen into synthetic e-fuels via artificial photosynthesis. 

A full copy of Velocys interim H1 2021 announcement is available on the company’s website.