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Expat, the findings around the leak removed the “potential for current or future liability on part of ENVIA or Velocys”, whilst the 2nd reactor worked fine.
In the recent podcast video, VLS said that the processes (woody biomass & waste) are essentially the same, bar the feedstock. On 3 Aug 2020 VLS said, with regard to Red Rock Biofuels (woody biomass), “Our reactor supply chain has now been tested and has proven our capability to deliver our technology to our global clients”, with Shell having entered into “a Cellulosic Fuel Purchase and Sale Agreement (8 Oct 2020)……in which Shell will purchase Sustainable Aviation Fuel (SAF) and cellulosic renewable diesel fuel from Red Rock’s new biorefinery in Lakeview, Oregon”. Both Red Rock and Shell seeming fairly confident with the technology at scale?
Sentiment might keep a popular – but alcoholic – bingo caller in a job down at the local plaza, despite turning up off his head every now and then, but the SAF market is likely less forgiving.
VLS need policy change – the same as the entire SAF industry – but if that comes, they seem fairly well positioned. Hopefully, some news will come from today’s investors day.
Interesting Happy H. Freeport decision, VLS tweet re Shapps, the announcement of the competition, VLS respond to the same on their website, 1m total buys after the bell yesterday, late buys today at near intraday high and investors day tomorrow but for II only. Will we see news tomorrow am?
Expat, VLS have been up front re SAF not being comparable (cost wise) to conventional jet fuel and ‘policy changes’ a) being necessary and b) also being required to aid the process of attracting investors.
The ‘Shell’ thing seems to have been a marriage of convenience; they got a gander at the technology / workings for £3.4m, and VLS got some PR and credibility from the association. Shell appears to be interested in larger operations and, also, control; ie saying that VLS ‘lost’ Shell does come across as disingenuous.
Re this latest ‘competition’ – not a fan of politics and wouldn’t be surprised if the ‘winner’ has already been decided – the focus is on Feasibility, pre-FEED and FEED; so it does seem applicable to VLS?
There’s a major risk in this all coming through – and growing competition – but, if it does, it is easily scalable. The average person produces 0.5 tonnes of MSW per year. Therefore, in theory, any conurbation of 1m or more – the same general location as regional airports?? – could be suitable.
The Humber region gained freeport status in the budget, VLS tweeted a radio interview by Grant Shapps 11 March 2021 and 5 days later he’s behind a new competition. Who knows??
https://www.velocys.com/2021/03/17/uk-government-moves-jet-zero-agenda-forward/
Andrew Morris, chief financial officer, commenting in response to this:
https://www.business-live.co.uk/economic-development/15m-funding-pot-green-jet-20188695
1m (in total) purchased after the bell, or?
VLS appear to tick the boxes here.
“The objectives for projects receiving financial support are:
• Technology demonstration: materially progress a project towards First-Of-A-Kind (FOAK) commercial production of an eligible SAF pathway.
• Fuel production: materially develop a project with the capability to produce commercially significant volumes of SAF, including for the purposes of attaining certification.
• Commercial potential: materially develop a strategy for commercialising the technology and the products from the project, demonstrating the potential for significant value to the UK.
• Emissions reduction: demonstrate the potential for greenhouse gas reductions of a technology pathway vs a fossil fuel equivalent.
• Project execution: bring together a team with the necessary expertise and experience to deliver the project according to its objectives.”
The Humber region - incorporating the Immingham site - was awarded a freeport status in the budget. This article details what businesses in these tax sites will be able to benefit from - eg 'Full relief from Stamp Duty Land Tax on the purchase of land or property until September 30, 2026' - and which might provide a bit of background re the lack of any recent updates in this regard; https://www.business-live.co.uk/ports-logistics/comment-freeports--good-news-19964843
Here's an interview (podcast video) from yesterday involving Neville Hargreaves, Vice President, Waste to Fuels and Drew Miller, Project Finance Director; https://www.transportenergystrategies.com/2021/02/17/velocys-on-scaling-up-net-negative-carbon-capture-ready-fuels/ It is 36 mins long but some interesting stuff in there.