(Sharecast News) - Velocys announced on Thursday that it has secured a purchase order and technical service agreements with Toyo Engineering Corporation for the use of its technology in a publicly-funded demonstration facility in Nagoya, Japan, as well as an advanced deposit for the use of the technology by Toyo in a subsequent commercial plant.
The AIM-traded firm said Toyo had placed an order, worth approximately $0.5m (£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 said it had agreed that it would 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 $4m.
The deposit would be paid in a non-refundable tranche of $0.5m, and a further tranche which would be potentially refundable and subject to milestones.
"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," said Velocys chief executive officer Henrik Wareborn.
"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."
22 Sep 2014 09:20