News release

23 October 2023

Launch of 52,500 sq. ft State of the Art Technology Facility

OHIO: Velocys, the sustainable fuels technology company, is delighted to announce the launch of its new 52,500 sq. ft technology facility in Plain City, Ohio that will house the reactor core assembly and catalysis operations which form a critical part of the production process for sustainable aviation fuel ("SAF").

The new site enables the consolidation of Velocys' catalysis services, microchannel reactor core assembly and technology licensing under one roof. The building's construction began in mid-2022 and was finished by the end of the year with fit out completed over the Winter.  

Following the completion of an Enterprise Zone agreement signed with Union County and Jerome Township, Ohio for a package of investment incentives and a grant received from JobsOhio, Velocys has already hired a number of senior personnel. 

The Company is currently occupying the space with 20 employees and installing equipment which is expected to be fully commissioned for production from mid-2024. Eventually the facility will house approximately 35 employees when in full production.

The new site has the capacity to produce approximately 48 cores per year, enough to support 12 reactors which is the typical requirement for the operation of a single commercial scale SAF biorefinery, with a capacity to convert approximately 1TWh per year of energy.

It is expected that the facility will have sufficient production capacity to meet projected orders until 2028, including those from Velocys' two biorefinery reference projects - Bayou Fuels, Mississippi and Altalto, Immingham, UK.  

As part of a 15 year lease agreement, Velocys contributed $2m towards the construction with the remaining $8m being contributed by the developer, Warner Industrial Corporate Centers 2 LLC, a subsidiary of Ohio-based developer, The Pagura Company. 

The launch event will take place at 10.00am local time on Tuesday 24 October, 8520 Warner Road, Plain City, Ohio 43064 in the presence of Velocys executives, clients, board members, local stakeholders and colleagues.

Henrik Wareborn, Velocys CEO, said: "The completion of this state of the art facility is a real milestone both for Velocys and for the move to decarbonise the aviation industry. It is another critical piece in the jigsaw to go alongside the support we are receiving from regulatory and policy initiatives in all of our core markets. I would like to offer my thanks to the State of Ohio along with the many contractors who have completed this project in such a short time frame. To move from planning permission to completion in two years is a testament to all those involved and takes us a big step closer to enable our clients to produce SAF with ultra-low carbon intensity at commercial scale."

About Velocys

Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.

Two reference projects (Bayou Fuels, US, and Altalto Immingham, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch ("FT") technology with an integrated end to end solution, including renewable power and carbon sequestration.

Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.

www.velocys.com

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