Velocys announces negative emission fuels project in Mississippi, US

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Velocys has announced a project to produce negative emission fuels after signing a carbon capture, usage and storage (CCUS) agreement with Oxy Low Carbon Ventures (OLCV).

The alternative fuels firm announced the partnership to capture carbon dioxide (CO2) from its planned Bayou Fuels biomass-to-fuels project in Natchez, Mississippi, and securely store it underground. OLCV, a wholly-owned subsidiary of Occidental, will take, transport and store the CO2 captured from the Bayou Fuels facility, enabling the production of transportation fuels that have net negative carbon intensity. It will be the first facility of its kind in the world.

According to a statement by Velocys, the Bayou Fuels project will take waste woody biomass and convert it into transportation fuels, such as diesel for trucks and sustainable aviation fuel, using the company’s Fischer-Tropsch process.

Integrating CCUS into the Bayou Fuels biorefinery boosts certain targeted revenue streams, such as those derived from the California Low Carbon Fuels Standard and US 45Q tax credits, to incentivise the installation of carbon capture equipment on industrial facilities. The company hopes its proposed CCUS solution can be replicated at other sites, including its UK project which recently submitted a planning application to build Europe’s first commercial scale waste-to-jet fuel facility.

“We want this facility, and others that will follow, to be as environmentally friendly as possible and offer attractive opportunities for partnerships with major energy companies,” said Velocys CEO Henrik Wareborn.

“We don’t just want to deal with waste materials and produce cleaner-burning fuels, we want the process that produces the clean fuels to be as sustainable as possible as well.

“That is why we will be capturing CO2 as a by-product from the gasification process at the Mississippi facility. This will make the facility a net negative emitter of carbon dioxide, which is highly desirable from both an environmental and an investment point of view.”

Richard Jackson, president at OLCV, added: “Carbon capture, utilisation and sequestration is essential to reducing the carbon intensity of the transport sector and achieving global climate goals. This project illustrates how CCUS can enable production of zero-carbon and negative-carbon fuels.

“Occidental is uniquely positioned to develop and operate CO2 sequestration facilities based on our 40 years of experience injecting CO2 for enhanced oil recovery. We are excited to build on this experience to support Velocys in a strategic partnership to produce negative-carbon intensity fuels.”