Velocys, the UK-based sustainable aviation fuel technology firm and developer, has secured $40m of growth capital following a take private, according to a news release.
Carbon Direct Capital, Lightrock, GenZero and Kibo Investments all participated in the raise, which brings the company out of financial distress. ReSource reported on the take private transaction in December. Velocys said then that unless it was able to find meaningful sources of funding or strategic options, it was unlikely that the company would be able to continue past the end of 2023.
“The funds will be used to accelerate the delivery of Velocys’ proprietary technology to customer projects whilst further building its technology leadership, scaling its production and enhancing the breadth and depth of the team’s expertise,” the release states.
Velocys in October announced a new technology facility in Plain City, Ohio, to house the reactor core assembly and catalysis operations related to its production process for SAF. The company is developing two proposed SAF projects, including the Bayou Fuels project in Natchez, Mississippi with a production of 36 mgpy from woody biomass feedstock.
“Velocys 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,” the release states. “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.”
There are also plans to ramp up capacity of the Ohio facility as demand for SAF grows.
Henrik Wareborn will continue to lead Velocys’ management team as the CEO.
