Velocys signs MoU for SAF offtake
Velocys has entered into a Memorandum of Understanding (MoU) for the offtake of Sustainable Aviation Fuel (SAF) with International Consolidated Airlines Group.
The fuel will be produced at the Bayou Fuels project in Mississippi, US.
The MoU covers the purchase of an expected 73 million gallons of SAF, in aggregate, at a fixed price.
After blending, this will produce the equivalent of 192 million gallons of net zero SAF during the term of the purchase contract, which will last for 10 years from 2026.
The Velocys carbon mitigation technology will enable the commercial-scale production of a deeply negative SAF at the Bayou Fuels plant through the combination of biogenic feedstock, renewable power and carbon capture and storage.
Henrik Wareborn, CEO of Velocys, said: “We are delighted that IAG,our partner for many years through our work with British Airways, intend to purchase a large volume of SAF from the Bayou Fuels project. This long-dated offtake, encompassing support for environmental credits, will provide certainty of revenue for the Project which should enable construction capital financing. We have now secured long term offtake clients for 100% of the expected SAF production and associated environmental credits for the Bayou Fuels facility.
“Velocys’ focus is now on accelerating technology delivery with our partners to allow client facilities, including Bayou Fuels, to reach Final Investment Decision and then going to construction. Our capital-light, technology-licensing model will enable many more aviation clients to transition to Sustainable Aviation Fuelas required by the race to Net Zero.”
Don't forget our world-leading Biofuels International Conference and Expo takes place in Brussels on March 15-16 with some great speakers participating. For more information go to https://biofuels-news.com/conference/
The fuel will be produced at the Bayou Fuels project in Mississippi, US.
The MoU covers the purchase of an expected 73 million gallons of SAF, in aggregate, at a fixed price.
After blending, this will produce the equivalent of 192 million gallons of net zero SAF during the term of the purchase contract, which will last for 10 years from 2026.
The Velocys carbon mitigation technology will enable the commercial-scale production of a deeply negative SAF at the Bayou Fuels plant through the combination of biogenic feedstock, renewable power and carbon capture and storage.
Henrik Wareborn, CEO of Velocys, said: “We are delighted that IAG,our partner for many years through our work with British Airways, intend to purchase a large volume of SAF from the Bayou Fuels project. This long-dated offtake, encompassing support for environmental credits, will provide certainty of revenue for the Project which should enable construction capital financing. We have now secured long term offtake clients for 100% of the expected SAF production and associated environmental credits for the Bayou Fuels facility.
“Velocys’ focus is now on accelerating technology delivery with our partners to allow client facilities, including Bayou Fuels, to reach Final Investment Decision and then going to construction. Our capital-light, technology-licensing model will enable many more aviation clients to transition to Sustainable Aviation Fuelas required by the race to Net Zero.”
Don't forget our world-leading Biofuels International Conference and Expo takes place in Brussels on March 15-16 with some great speakers participating. For more information go to https://biofuels-news.com/conference/
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