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Velocys secures order with Toyo Engineering Corp

11:07, 19th September 2019
Francesca Morgan
Company News
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Sustainable fuel company, Velocys (VLS) FOLLOW, announced on Thursday that it had secured an order of $500,000, alongside a technical service agreement, for the use of its technology by engineering firm, Toyo Engineering Corporation, or ‘Toyo’.

The engineering firm made the order to use the AIM-listed company’s technology within its publicly funded demonstration facility in Nagoya, Japan. 

Included in the order is Velocys’ Fischer-Tropsch technology, a compact reactor allowing the production of advanced biofuels, converting solid wastes into liquid transport fuels. 

The use of the reactor is to aid a route to sustainable fuels that are traditionally very difficult to decarbonise -- in this case, Toyo will use the firm’s technology, equipment and catalyst for a biomass-to-jet fuel demonstration facility that is currently under construction by a consortium of Japanese companies.

Henrik Wareborn, CEO of Velocys, commented, "I am delighted with this further evidence of the global demand for sustainable aviation fuels and for our technology, which has already been demonstrated at commercial scale. 

I am proud that Velocys technology has been chosen to be part of this publicly funded demonstration facility, which is an important step towards a commercial application in Japan.”

Additionally, Toyo has also made an advance deposit of $4 million for the use of Velocys’ technology in a future potential commercial plant in Japan. 

The deposit will be paid in a non-refundable tranche of $500,000 alongside a further tranche potentially refundable and subject to milestones.

Mr Wareborn further added, “We appreciate the commitment of Toyo, and we look forward to working with them and their partners to complete the demonstration and to support the expected future commercial plant."

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