25th Jan 2023 16:16
(Alliance News) - Velocys PLC on Wednesday said it has agreed a sustainable aviation fuel project delivery solution for global markets.
The Oxford, England-based sustainable fuels technology company said both parties set out to collaborate with each other towards the objective of developing an engineering, procurement and construction execution model for the company's sustainable fuels projects.
Shares in Velocys were up 9.7% to 4.55 pence each in London on Wednesday afternoon.
This collaboration will initially focus on Velocys' two main reference projects, the Altalto project in Immingham, UK, and Bayou fuels project in the US, and the recently announced e-Alto power-to-liquids project in the UK.
All of these subject to the terms of future contracts. However, the agreement also covers other third-party projects that may be introduced by either Bechtel or Velocys.
Under a separate continuing technical services agreement, Bechtel is providing front end project engineering and other technical services to support the development of Velocys' SAF project portfolio.
"The master relationship agreement with Bechtel is an important step towards the provision of world-class EPC capability and capacity to the expanding Velocys project portfolio," said Velocys Chief Executive Officer Henrik Wareborn.
"Working with Bechtel will give added value to current and future clients with respect to successful project delivery."
Bechtel President Paul Marsden added: "We are committed to supporting revolutionary energy transition projects designed to reduce global carbon emissions."
"As part of Bechtel's portfolio in sustainable fuels, we are excited to collaborate with Velocys and look forward to realising the potential of these facilities to introduce sustainable fuel options for global markets."
By Greg Rosenvinge, Alliance News reporter
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