Velocys secures €37 million in growth capital
As part of the transaction, a new consortium of growth investors, including Carbon Direct Capital, Lightrock, GenZero and Kibo Investments, has infused Velocys with $40 million (€37 million) of growth capital.
The funds will be used to accelerate the delivery of Velocys’ proprietary technology to customer projects whilst further building its technology leadership, scaling its production and enhancing the breadth and depth of the team’s expertise.
Velocys has invested to scale its reactor facility in Plain City, Ohio, to ensure a stable supply of reactors for delivery to SAF project owner-operators around the world.
Velocys’ 52,500 square foot reactor facility will be able to produce an initial 12 reactors per year, which is the typical requirement for the operation of a commercial-scale SAF biorefinery. There are also plans to ramp up capacity of the facility as demand for SAF grows.
Henrik Wareborn will continue to lead Velocys’ management team as the Chief Executive Officer.
Josh Dienstag, Chief Investment Officer of Carbon Direct Capital, said: “We believe drop-in fuels are the most promising, scalable solution to decarbonise aviation and to deliver climate impact the soonest.
“Velocys is a scarce supplier with the technology readiness, production capacity, and leadership team to deliver for SAF project partners. We are pleased to be part of this investor consortium and to support Henrik and the Velocys team.”
Henrik Wareborn, chief executive officer of Velocys, said: “The deal secures the future of Velocys, our pioneering technology and our industry leading talent, allowing us to keep our foot on the accelerator as we continue to lead the way in innovative sustainable aviation fuel solutions as we enter an inflection point for our industry.
“For the past twenty years Velocys has had a critical role in the development of reactors, technology and processes which enable the efficient production of lower carbon SAF, and we and our new partners are excited to see what the next twenty will bring.”