Velocys delivers FT reactors and catalyst for Japanese biomass-to-jet demo project

In the UK, Velocys announced it has constructed and now delivered Fischer-Tropsch (FT) reactors and catalyst to Toyo Engineering Corporation (Toyo) for use in a biomass-to-jet fuel demonstration facility in Nagoya, Japan.

Toyo is currently constructing the bio-jet fuel facility as part of a consortium of Japanese companies. The order for Velocys was previously announced on September 19. The order was worth approximately $0.5 million.

In addition, Velocys has agreed that it will grant an exclusive right for Toyo to secure and use the license and technical services of the Velocys FT Technology for a future potential commercial plant in Japan with an advance deposit of $4 million. The deposit will be paid in a non-refundable tranche of $0.5 million and a further tranche which is potentially refundable and subject to milestones.