Velocys plc has secured a purchase order and technical service agreements with Toyo Engineering Corp. (Toyo) for the use of Velocys technology in a publicly funded demonstration facility in Nagoya, Japan, as well as an advanced deposit for the use of the Velocys technology by Toyo in a subsequent commercial plant.
Toyo has placed an order with Velocys, worth approximately US$0.5 million (£0.4 million), to supply its Fischer-Tropsch (FT) technology, equipment and catalyst for a biomass-to-jet fuel demonstration facility currently under construction by a consortium of Japanese companies.
In addition, Velocys has agreed that it will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for a future potential commercial plant in Japan with an advance deposit of US$4 million (£3.2 million). The deposit will be paid in a non-refundable tranche of US$0.5 million (£0.4 million) and a further tranche which is potentially refundable and subject to milestones.
Henrik Wareborn, CEO of Velocys, said: “I am delighted with this further evidence of the global demand for sustainable aviation fuels and for our technology, which has already been demonstrated at commercial scale. I am proud that Velocys technology has been chosen to be part of this publicly funded demonstration facility, which is an important step towards a commercial application in Japan. We appreciate the commitment of Toyo, and we look forward to working with them and their partners to complete the demonstration and to support the expected future commercial plant.”
Read the article online at: https://www.hydrocarbonengineering.com/refining/19092019/velocys-wins-biorefinery-licence-order/