Velocys, a technology firm headquartered in Oxford, UK, has successfully secured a significant investment of USD 40 million from a consortium of growth investors. This investment forms a part of a take-private deal that the company finalized on January 18. The group of climate investors, which includes Carbon Direct Capital, Lightrock, GenZero, and Kibo Investments, has provided the growth capital for Velocys.
Originating from Oxford Catalysts, a spin-out company from the University of Oxford, Velocys has developed a catalyst and micro-channel reactor platform for the production of sustainable aviation fuel (SAF). The company’s Fischer-Tropsch technology is versatile and can be utilized with various feedstocks, including municipal solid waste, woody biomass, and CO2 and green hydrogen. Furthermore, Velocys has a reactor facility in Plain City, Ohio, with the capacity to produce an initial 12 reactors per year, equivalent to what is typically required for the operation of a commercial-scale SAF biorefinery.
The investment will be allocated towards expediting the delivery of its technology to customer projects and further investing in its technology, production, and personnel, according to chief executive Henrik Wareborn.
Josh Dienstag, chief investment officer of Carbon Direct Capital, has expressed that drop-in fuels are the most promising and scalable solution to decarbonize aviation and considers Velocys a rare supplier with the necessary technology readiness, production capacity, and leadership team to deliver for SAF project partners.
This investment marks a significant milestone for Velocys, enabling the company to maintain its leading position in the innovative sustainable aviation fuel solutions industry as it navigates an inflection point for the industry.
As the world directs its attention towards sustainable and renewable energy solutions, investments like this are crucial for the advancement of technology and the reduction of carbon emissions. Velocys is at the forefront of this movement, and this substantial investment will undoubtedly further its mission to provide innovative and sustainable solutions for the aviation industry.
In conclusion, the investment from a consortium of growth investors will undoubtedly propel Velocys to new heights in the sustainable aviation fuel technology industry. With their pioneering technology and industry-leading talent, the company is well-positioned to lead the way in providing innovative sustainable aviation fuel solutions, contributing to the industry’s overall mission to reduce carbon emissions.
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