Velocys plc has signed a site option agreement with Adams County in the State of Mississippi for its first US biorefinery, which will be located in Natchez, Mississippi.
Velocys has confirmed that it has been offered economic development incentives from Adams County estimated to be worth the equivalent of US$42 million.
The project also expects to qualify for additional incentives via Mississippi’s Advantage Jobs Act and other statutory tax incentives, worth up to US$15 million. These incentive packages are subject to Velocys meeting certain minimum requirements for capital investment and local employment opportunities.
Velocys has also received commitments from Adams County worth approximately US$4 million (relating to the land and upgrades to the site) and US$1 million site upgrade commitments from local utility suppliers.
The company selected the site after analyzing a broad set of operational and tax considerations at 12 possible sites in four States in the Southeast US. Due diligence, including site visits, was completed at each of these sites and incentive offers were received from each State in question. Velocys will maintain its list of other advantaged sites in the region, which could host plants with capacities totalling 100 million gal. over the next 10 years.
Site permitting activities have now begun for the Natchez site.
David Pummell, CEO of Velocys, said: “This is an important step towards the development of our first biorefinery in the US to address the attractive and growing renewable fuels market. We welcome the significant support for this plant at the local level, including the future financial support that further enhances plant economics. Velocys and its partners are continuing to make significant progress towards completing other work packages needed to deliver a successful USDA loan guarantee application, which we are targeting in 2018. We look forward to updating our stakeholders on the progress of this transformational project in Mississippi.”