Velocys PLC Toyo and Velocys execute a Collaboration Agreement (1981O)
February 08 2021 - 2:00AM
UK Regulatory
TIDMVLS
RNS Number : 1981O
Velocys PLC
08 February 2021
News release
Velocys plc
("Velocys" or "the Company")
8 February 2021
Toyo and Velocys execute a Collaboration Agreement
Velocys plc (VLS.L), the sustainable fuels technology company,
is pleased to announce the signing of a collaboration agreement
with Toyo Engineering Corporation (Toyo) to start the development
of their commercial projects to produce Sustainable Aviation Fuel
(SAF) and other renewable fuels in Japan.
The agreement follows on from the successful work already
conducted in 2020 between Velocys and Toyo at the
biomass-to-jet-fuel demonstration facility in Japan. This included
the provision of technical engineering and operational services, as
well as the completed construction and delivery of Velocys'
Fischer-Tropsch (FT) technology.
As part of this new collaboration the parties have engaged in
the preliminary engineering evaluation of the FT island in a joint
effort to deliver a commercial scale biomass-to-jet fuel project in
Japan.
As previously announced, Velocys will grant an exclusive right
for Toyo to secure and use the licence and technical services of
the Velocys FT Technology for the commercial plant in Japan. An
advance deposit of $4 million was received in 2019 of which $3.5
million remains in escrow, which will be offset against future
revenues.
In addition, the collaboration will extend to include the supply
of the Velocys FT technology in other SAF, e-Fuels and
biomass-to-liquids projects in the Japanese market. This will be
led by Toyo, including other partners introduced by Toyo.
Subsequent project execution for SAF, e-Fuels and other renewable
fuel projects will be delivered by Toyo and their partners,
potentially in Japan and other regions, with Velocys providing
technical engineering and operational services around the FT
technology.
Henrik Wareborn, CEO of Velocys, said:
"Velocys has a long-standing relationship with Toyo Engineering
and today's collaboration agreement further supports this
commitment. It indicates that Velocys is now firmly in the phase of
delivering our commercial scale technology to our clients'
commercial projects. Making our first steps into commercial
delivery in the Japanese market strengthens our position in an
additional geography to North America and Europe.
Our clients recognise the importance of our here-and-now
technology solution for commercial scale projects, not only greatly
reducing Scope 3 life-cycle carbon emissions but also resulting in
synthetic fuels with air quality advantages over conventional
fuels. We look forward to working with Toyo and their partners to
enable the supply of modern low greenhouse-gas synthetic fuels to
the Japanese market.
Whilst there is no immediate material impact on revenue, we are
delighted that the collaboration provides a pathway to
commercialisation in Japan."
Haruo Nagamatsu, CEO of Toyo, said:
" After the successful collaboration with the demonstration
plant in Japan, we are pleased to be moving onto the next stage of
the plan. The commercial deployment of the integrated technology
that has been demonstrated during 2020, including the Velocys FT
Technology, is now underway with the first stages of the
engineering designs. We are pleased to be working with Velocys and
their technical team and look forward to continuing our
relationship."
----
Certain information contained in this announcement would have
constituted 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 contact: Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head of Communications & Sustainability +44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Dan Norman (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance) +44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
Sarah Mather (Corporate Advisory) +44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly +44 20 3897 1830
Field Consulting (General PR)
Robert Jeffery +44 20 7096 7730
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
municipal solid waste and residual woody biomass.
Velocys is at present developing two reference projects: one in
Natchez, Mississippi, USA (incorporating Carbon Capture,
Utilisation and Storage) and one 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
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