Member Info for DaveHughes

"VSL is not the producer, they only supply the tech."

VLS currently own 100% of Bayou Fuels

"Cant compre AMTX to VLS, AMTX is a producer...make their SAF from woodchips." you obviously haven't done your research! Bayou Fuels will produce SAf from woodchips!

I don't read all the posts here since everyone got so excited recently but I haven't seen any mention of the ongoing revenue to VLS from the supply of catalyst to the users of VLS FT reactors!
The catalyst in each reactor has to periodically be replaced and this is expensive. VLS hold numerous patents relating to the catalysts and will be the sole supplier. The catalyst is manufactured by a third party to the VLS specification and then supplied to the plant operator by VLS no doubt with a very healthy margin built-in. Using catalyst that is not to spec risks seriously damaging the FT reactor.
VLS was originally named Oxford Catalysts and their USP was their patent-protected catalyst IP. Before they had to temporarily become project developers their business plan was based upon the supply of FT reactors plus the long term catalyst supply contracts. It is essentially an updated version of the Gillette razor blade business model!

" They will not be able to finance a plant themselves."

Come off it expat, you are a smart guy and you must see now that whatever the risks you think are there, in the current climate they are going to get funding!
The US, UK and most other countries are desperate to see a way that airlines can continue to operate and thrive. There are grants, subsidies, SAF credits etc. that will tip the balance.
The airlines have obviously got to make sure that significant volumes of SAF are going to be produced.
Financial institutions are falling over themselves to promise funds for green developments to boost their Eco credentials.
The number of projects listed in the US Gov report is nowhere near enough to produce the volumes needed. There will be a lot of haggling I'm sure, but these plants will get the finance they need in due course.

I believe that currently VLS own 100% of Bayou Fuels and 50% of Altalto(BA has the other 50%). In due course their shareholding is very likely to fall as funding partners come onboard.

Originally, the VLS business model was to not be a fuel producer but to supply the FT reactors and also the catalyst for the life of the plant. Several years ago, having not made any commercial sales (for a variety of reasons) they changed the model to be a developer and fuel producer themselves to kick-start the use of their technology. As things stand, VLS will be shareholders in both Bayou Fuels and Altalto. What part they will play in any future projects remains to be seen as far as I know.
They have also supplied FT units to Red Rock and a demonstration unit to Toyo in Japan where they will not have a stake in any resulting plant.

Yes, with a net asset value of 98p there is a lot of hope and high expectations built into the current sp!

The AUM is the size of the fund (i.e. approx £100m). If it was anything else the figures for the Sunfire investment wouldn't make sense; and investments of £20m results in 19.79% of the AUM.

It is actually 0.54% of around £100m (the size of the fund). The fund is limited to investing 10% in listed companies which is where the figure of £9.6m comes from.
It still isn't a large investment but as the fund is run by experienced guys who have spent a lot of time researching the sector I thought it is a positive sign for AFC!

There are obviously competitors but the point I was making is that the paper says 300 m/galls from VLS rather than the 35 m/galls I would have expected it to say.

I imaging you mean SWA rather than SAF.
I would think SWA are sincere as all airlines have a big problem to solve if they want to stay in business. The riskiest aspect has always been finding the finance for the first plant that proves the viability of the technology at a large scale. This was the case with Green Sky and Red Rock Biofuels etc. However, in the present climate governments and financial institutions are desperate to find a way forward so there are big incentives, this time, to make the plans happen. Obviously, the recent OffTake agreements are a big help in guaranteeing the future revenue.

read it again!

Bayou Fuels is rated at 35 million gallons/year but the US government paper says

"Velocys plans to produce 300 million gallons of blended SAF per year from waste woody biomass and MSW processed by Fischer-Tropsch processing."

So that is either a typo or VLS are actively developing other sites!

https://hydrogenonecapitalgrowthplc.com/wp-content/uploads/2021/11/Quarterly-factsheet-September-2021.pdf

https://www.velocys.com/projects/altalto/

20 million gallons

There won't be more alines signing up until VLS have plans for more plants. The Southwest deal is for 2/3 of the output of Bayou fuels and IAG are taking a load more.

Abu Dhabi certainly does have a plan and AFC Energy are an important part of it!

It is interesting that the paper makes no mention of Red Rock Biofuels. I realise that they have run out of cash but they do have a partially built plant that could be completed fairly quickly with the right assistance!

"Why does producing natural gas eliminate any carbon savings?"
It doesn't produce natural gas. FT can be used to convert natural gas to diesel, kerosene etc. which in the end will release more CO2. When I first became interested in VLS one of the main target markets was seen as the elimination of gas flaring by converting the gas to liquid fuels.

.... DW and Garonne, that AB is deliberately holding back news just to p**s you two off!