Velocys teams with Toyo to develop SAF in Japan

February 8, 2021 |

In the UK, Velocys plc has signed a collaboration agreement with Toyo Engineering Corporation (Toyo) to start the development of their commercial projects to produce Sustainable Aviation Fuel (SAF) and other renewable fuels in Japan.

The agreement follows on from the successful work already conducted in 2020 between Velocys and Toyo at the biomass-to-jet-fuel demonstration facility in Japan. This included the provision of technical engineering and operational services, as well as the completed construction and delivery of Velocys’ Fischer-Tropsch (FT) technology.

As part of this new collaboration the parties have engaged in the preliminary engineering evaluation of the FT island in a joint effort to deliver a commercial scale biomass-to-jet fuel project in Japan.

As previously announced, Velocys will grant an exclusive right for Toyo to secure and use the license and technical services of the Velocys FT Technology for the commercial plant in Japan. An advance deposit of $4 million was received in 2019 of which $3.5 million remains in escrow, which will be offset against future revenues.

In addition, the collaboration will extend to include the supply of the Velocys FT technology in other SAF, e-Fuels and biomass-to-liquids projects in the Japanese market. This will be led by Toyo, including other partners introduced by Toyo. Subsequent project execution for SAF, e-Fuels and other renewable fuel projects will be delivered by Toyo and their partners, potentially in Japan and other regions, with Velocys providing technical engineering and operational services around the FT technology.

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Category: Fuels

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