Velocys plc (VLS.L) has received a notice to proceed action to commence manufacturing of the Fischer-Tropsch reactors and catalyst for the Red Rock Biofuels LLC (RRB) biorefinery that will be located in Lakeview, Oregon, US. RRB has commenced construction of the biorefinery which will produce low-carbon, renewable diesel and jet fuel. Velocys’ role will be as a licensor for its technology to the project.
RRB is a subsidiary of IR1 Group LLC, which has 325 million gal. of installed biofuels capacity. The biorefinery in Lakeview will convert forestry residue into 15 million gal./yr of renewable transportation fuels, including diesel and jet fuel. Enough jet fuel will be produced by the plant to fuel 1800 round trips per year from Portland, Oregon to San Francisco. RRB has in place contracts from several airlines to purchase 100% of the jet fuel produced each year.
RRB’s Lakeview project is expected to deliver around US$15 million revenues to Velocys during the construction and early operation stages of the plant, and an additional US$30 million or more over the life of the biorefinery. Over US$6 million has already been invoiced and received from RRB.
Velocys’ technology, be it via licensed third-party projects like RRB’s biorefinery or through Velocys’ own projects such as the Natchez, Mississippi project, will supply the aviation and road haulage industries with a scalable, sustainable supply of fuel.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/07052018/velocys-becomes-licensor-for-biorefinery-project/