Velocys PLC Negative-emission fuel agreement (3655P)
10 Ottobre 2019 - 8:00AM
UK Regulatory
TIDMVLS
RNS Number : 3655P
Velocys PLC
10 October 2019
News release
Velocys plc
("Velocys" or "the Company")
10 October 2019
Negative-emission fuel agreement
Velocys' Bayou Fuels project set to produce negative emission
fuels after signing CCUS agreement with Oxy Low Carbon Ventures
Velocys, Inc., a wholly owned subsidiary of Velocys plc
(Velocys), announced today it has signed an agreement with Oxy Low
Carbon Ventures, LLC (OLCV), to capture carbon dioxide (CO(2) )
from Velocys' planned Bayou Fuels biomass-to-fuels project in
Natchez, Mississippi, and securely store it underground in a
geologic formation.
OLCV, a wholly owned subsidiary of Occidental, will take,
transport and store CO(2) captured from the Bayou Fuels facility,
when it is completed, enabling the production of transportation
fuels that have a net negative carbon intensity, making it the
first facility of its kind in the world.
The Bayou Fuels project will take waste woody biomass and
convert it into transportation fuels, such as diesel for heavy
trucks and sustainable aviation fuel, using Velocys' proprietary
Fischer Tropsch process. The integrated technical solution designed
by Velocys is ideally suited to carbon capture, usage, and storage
(CCUS); the CO(2) is captured before it enters the atmosphere. OLCV
is uniquely positioned to transport and store the CO(2) by
leveraging Occidental's industry leadership in CO(2) storage and
utilisation. This combination of CCUS-ready technology and
Occidental's expertise in storing CO(2) enables the Velocys
facility to produce net negative carbon intensity fuels.
Integrating CCUS into the Bayou Fuels biorefinery increases
certain targeted revenue streams, such as those derived from the
California Low Carbon Fuels Standard, and U.S. 45Q tax credits that
incentivise the installation of carbon capture equipment on
industrial facilities. This has a meaningful positive impact on
returns. It also helps to de-risk the project and others that
follow it. The proposed CCUS solution can be replicated at other
sites under development, including Velocys' UK project which
recently submitted a planning application to build Europe's first
commercial scale waste-to-jet fuel facility.
Henrik Wareborn, CEO at Velocys said:
"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. 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 CO(2) as a by-product from the
gasification process at our 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.
This carbon negative solution could be replicated at other
Velocys sites, so we hope our proposed UK facility in Immingham
will be able to benefit from this technology, subject to UK
Government support for CCUS deployment and the availability of
transportation and storage infrastructure in the Humber
region."
Richard Jackson, President, OLCV, said:
"Carbon capture, utilization, 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 CO(2)
sequestration facilities based on our 40 years of experience
injecting CO(2) 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."
ENDS
For further information, please contact:
Velocys
Henrik Wareborn, CEO +44 1865 800821
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard +44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O'Connor
James Asensio +44 20 7523 8000
Radnor Capital (Investor relations)
Joshua Cryer +44 20 3897 1830
Field Consulting (PR) +44 20 7096
Robert Jeffery 7730
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.
www.velocys.com
Notes to editors
Velocys is a sustainable fuels technology company. Based on
science from the Pacific Northwest National Laboratory in the US
and Oxford University in the UK, over 15 years Velocys has
developed proprietary Fischer-Tropsch technology that enables the
production of drop-in transportation fuels from the embedded carbon
sources in a variety of waste materials. Having demonstrated its
technology at commercial scale, Velocys is currently developing
projects in Natchez, Mississippi, and Immingham, UK to produce
fuels that significantly reduce both greenhouse gas emissions and
key exhaust pollutants for aviation and road transport.
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of
Occidental, an international oil and gas exploration and production
company with operations in the United States, Middle East and Latin
America. Occidental's global strategy includes active investment in
carbon dioxide enhanced oil recovery (CO(2) -EOR) and carbon
capture, utilisation and storage (CCUS), as well as other emissions
reducing technologies. OLCV capitalises on Occidental's EOR
leadership by developing CCUS projects that source anthropogenic
CO(2) and promotes innovative technologies that drive cost
efficiencies and economically grows Occidental's business while
reducing emissions.
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contact rns@lseg.com or visit www.rns.com.
END
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