REG - Velocys PLC - Velocys and Bechtel Agreement

VelocysAnnouncement

25/01/2023 11:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230125:nRSY8428Na&default-theme=true

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 £27 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                                                            +44 1865 800821

 Henrik Wareborn, CEO

 Philip Sanderson, 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)

 James Thomas (Corporate Advisory)
 Radnor Capital (Investor Relations)                                +44 20 3897 1830

 Joshua Cryer

 Iain Daly
 Buchanan (Financial PR)                                            +44 20 7466 5000

 Helen Tarbet

 Simon Compton

 

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 (http://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 £27 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 £2.5 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 (http://www.bechtel.com/)

 

--Ends-

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGRBAMBTMTMTBBJ