Velocys Raises US$40m for Sustainable Aviation Tech
Velocys, a prominent sustainable aviation fuel (SAF) technology company, has raised US$40 million of growth capital through take-private.
A consortium of growth investors, including Carbon Direct Capital, Lightrock, GenZero, and Kibo Investments, has made this happen.
These funds will fuel the acceleration of Velocys' proprietary technology deployment in customer projects, strengthen its technological leadership, expand production capacity, and enrich the team's expertise.
Reducing carbon emissions in aviation is a big challenge, with airlines producing a massive 800 megatonnes of carbon each year. Velocys believes there will be a growing demand for SAF because of new regulations and advancements in fuel technology.
For example, the EU is requiring airports to have 2% SAF by 2025, rising to 70% by 2050. Airlines are also starting to use more SAF, with over 4,90,000 flights using it partially in 2023, up from just 500 flights in 2016.
Velocys is known for its technology, which can turn various materials into SAF. Their reactors can handle things like waste, wood, and even CO2 and hydrogen, making them versatile.
To ensure a consistent supply of reactors for SAF projects worldwide, Velocys has expanded its reactor facility in Plain City, Ohio. This facility, spanning 52,500 square feet, is capable of producing 12 reactors annually, sufficient for commercial-scale SAF biorefineries. Plans are in place to further ramp up capacity in response to escalating SAF demand.
Henrik Wareborn, Chief Executive Officer of Velocys, said: “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.
"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.”
For more sustainable finance news
Discover an extensive network of ESG providers here
Source: Velocys
