RCS - Velocys PLC - US government SAF policy support

VelocysAnnouncement

14/09/2021 07:00

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RNS Number : 6384L  Velocys PLC  14 September 2021

News Release

 

Velocys plc

("the Company")

 

 

14 September 2021

 

 

US government SAF policy support

 

White House accelerates critical policy support for SAF production: Velocys'
Bayou Fuels reference project in Mississippi well positioned to benefit

 

Velocys plc (VLS.L) welcomed the US Government announcement last week of a set
of comprehensive new policy actions in support for Sustainable Aviation Fuel
(SAF) production in the US. Velocys is cited in a White House briefing paper
setting out the Biden administration's plans to incentivise commercial scale
supply of SAF in the US to meet decarbonisation objectives while stimulating
economic growth.

 

The briefing factsheet can be viewed at:

https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/09/fact-sheet-biden-administration-advances-the-future-of-sustainable-fuels-in-american-aviation/
(https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/09/fact-sheet-biden-administration-advances-the-future-of-sustainable-fuels-in-american-aviation/)

 

The central new policy incentive is a Sustainable Aviation Fuel tax credit as
part of the Build Back Better Agenda. This credit will help cut costs and
rapidly scale domestic production of sustainable fuels for aviation. The
proposed tax credit requires at least a 50% reduction in lifecycle greenhouse
gas emissions and offers increased incentive for greater reductions.

 

In addition, the US government plans to make available new and ongoing funding
opportunities to support sustainable aviation fuel projects and fuel producers
totalling up to $4.3 billion.

 

This follows on from Velocys' announcement that the UK Government supported
the Altalto SAF project in the UK with a grant award of £2.4m to British
Airways and Velocys, and the Japanese Government support for our clients in
Japan who are expected to use Velocys' patented FT technology for a commercial
scale biorefinery producing SAF from woodchips.

 

Henrik Wareborn, Velocys CEO, said:

 

"The momentum in the transition away from fossil fuels into sustainable
synthetic fuels is growing globally. Velocys proprietary Fischer Tropsch
microchannel technology provides the core enabling conversion process for
commercial scale production of SAF from a range of abundantly available
sustainable feedstocks with no other alternative use.

 

"The announcement by the Biden administration last week provides critical
support for our leading reference project in Mississippi supporting attractive
investment returns for energy transition investors driving decarbonisation of
aviation."

 

---------

 

For further information, please contact:

 Velocys                                                            +44 1865 800821

 Henrik Wareborn, CEO

 Andrew Morris, CFO

 Lak Siriwardene, Director of Communications & Sustainability
 Panmure Gordon (UK) Limited (Nomad and Joint Broker)               +44 20 7886 2500

 Hugh Rich (Corporate Broking)

 Emma Earl (Corporate Finance)

John Prior (Corporate Finance)
 Shore Capital Stockbrokers Limited (Joint Broker)                  +44 20 7408 4090

 Henry Willcocks (Corporate Broking)

 Toby Gibbs (Corporate Advisory)
 Radnor Capital (Investor Relations)                                +44 20 3897 1830

 Joshua Cryer

 Iain Daly
                                                                    +44 20 3697 7953

 Field Consulting (General PR)

 Rob Jeffery

 

 

Notes to Editors

 

Velocys is an international UK-based sustainable fuels technology company.
Velocys designed, developed and now licenses proprietary Fischer-Tropsch
technology for the generation of clean, low carbon, synthetic drop-in aviation
and road transport fuel from residual woody biomass and municipal solid waste.
The Velocys technology can also enable the production of zero carbon fuels for
the airline industry from renewable power and CO(2).

 

Velocys is at present developing two reference projects: the Bayou Fuels
project in Natchez, Mississippi, USA (incorporating Carbon Capture and
Storage) and the Altalto project in Immingham, UK, to produce fuels that
significantly reduce both greenhouse gas emissions and key exhaust pollutants
for aviation and road transport. Originally a spin-out from Oxford University,
in 2008 the Company acquired a US company based on complementary reactor
technology developed at the Pacific Northwest National Laboratory. Velocys is
headquartered in Oxford in the United Kingdom.

 

www.velocys.com (http://www.velocys.com/)

 

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