Velocys has announce the execution of a strategic framework agreement with Koch Project Solutions (KPS) for Velocys’ Bayou Fuels biorefinery project.
KPS may be awarded a turnkey engineering, procurement and construction (EPC) contract to deliver the project facility in Natchez, Mississippi, US.
This project is expected to produce approximately 33 million gallons/year (125 million litres/year) of sustainable aviation fuel (SAF) with negative carbon intensity and naphtha made from woody biomass from the pine plantations in the counties surrounding Natchez in Mississippi.
Upon successful execution of an EPC contract, KPS will be responsible for constructing and commissioning this first-of-its-kind facility, which includes the use of renewable power with carbon capture and storage of the plant’s by-product carbon dioxide.
Henrik Wareborn, CEO of Velocys, said: “The framework agreement with KPS is an important step in the progress of staged development of the Bayou Fuels biorefinery in Mississippi, US, which will support a financing package for the FEED phase of the project. We selected KPS due to their expertise in strategically evaluating and managing complex projects, particularly in the energy infrastructure space.
“The project will deliver SAF with a carbon intensity of -144g CO2e/MJ through the combination of biogenic feedstock, renewable power and carbon capture and storage. Such fuels significantly contribute to improved air quality, by reducing particulate emissions by up to 90%, lower Nitrogen Oxides and 99% lower Sulphur emissions compared to fossil fuels and standard aviation fuel.”
Paul Switzer, President of Koch Project Solutions, said: “Koch Project Solutions is proud to support the Velocys Bayou Fuels project and look forward to using the full breadth of our resources to deliver this pioneering biorefinery project on time and to budget. KPS is committed to contributing to the advanced renewable fuels industry and the Bayou Fuels project fulfils our vision.”
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