SAF Technology Company Velocys Secures $40 Million of Growth Capital

(Oxford, UK) Sustainable aviation fuel (SAF) technology company Velocys announced yesterday an infusion of $40 million of growth capital from a new consortium of growth investors as part of its take-private on January 18, 2024.

Photo of Velocys’ new 52,000 sf reactor core assembly facility in Ohio, which has sufficient production capacity to meet projected orders until 2028, courtesy of Velocys.

The consortium of growth investors includes Carbon Direct Capital, Lightrock, GenZero and Kibo Investments.

According to yesterday’s press release from Velocys, Velocys’ new growth capital will be used to accelerate the delivery of the company’s proprietary SAF technology to customer projects, enhance its technology and scale production.

Specifically, Velocys’ Fischer-Tropsch technology provides a scalable, flexible solution for projects that produce SAF; the technology is compatible with multiple project types employing diverse feedstocks, including municipal solid waste, woody biomass and carbon dioxide (CO2) and green hydrogen, and has demonstrated performance at scale, according to Velocys.

According to Velocys’ press release, the company has invested to scale its reactor facility in Plain City, Ohio, to ensure a stable supply of reactors for delivery to SAF project owner-operators around the world. Velocys’ 52,500 square foot reactor facility will be able to produce an initial 12 reactors per year, which is the typical requirement for the operation of a commercial-scale SAF biorefinery; Velocys plans to ramp up capacity of the facility as demand for SAF grows.

Velocys’ press release also notes that airlines are expected to drive forthcoming exponential growth in SAF; in 2023, more than 490,000 flights were partially powered by SAF, up from 500 flights in 2016.

“The deal secures the future of Velocys, our pioneering technology and our industry leading talent, allowing us to keep our foot on the accelerator as we continue to lead the way in innovative sustainable aviation fuel solutions as we enter an inflection point for our industry,” said Velocys' Chief Executive Officer Henrik Wareborn. “For the past twenty years Velocys has had a critical role in the development of reactors, technology and processes which enable the efficient production of lower carbon SAF, and we and our new partners are excited to see what the next twenty will bring.”