Success! You're on the list.

Success! You're on the list.

Know how this England-based company that raised $40M growth capital is decarbonising aviation industry

Know how this England-based company that raised $40M growth capital fund is decarbonising aviation industry

England-based developer of sustainable aviation fuel (SAF) technology company Velocys has soared into a new era, finalising its transition to a private company and securing $40 million in growth capital through a consortium of investors comprising Carbon Direct Capital, Lightrock, GenZero, and Kibo Investments.

This strategic move positions the company to accelerate the delivery of its pioneering technology, scale production, and contribute meaningfully to decarbonizing the aviation industry. Last month, Carbon13 announced €30M first closed of fund to cut down global carbon emissions rate. This clearly shows that the investors and companies are actually trying to decarbonise many industries.

Addressing aviation’s carbon footprint

With an annual carbon footprint of 800 megatons, the aviation sector faces a critical challenge in decarbonization. Fortunately, the confluence of supportive regulations and advancements in drop-in fuel technologies like SAF is fueling optimism for a greener future. As evidence, new European Union regulations mandate airlines to source a growing percentage of their fuel from SAF, reaching 70% by 2050.

Velocys: Technology and expertise for sustainable aviation 

Velocys stands at the forefront of this movement with its patented catalyst and micro-channel reactor platform that offers a flexible and scalable solution for SAF production. Their versatile Fischer-Tropsch technology efficiently processes diverse feedstocks like municipal solid waste and green hydrogen, maximising lifecycle carbon savings for clients. Furthermore, Velocys’ extensive experience in technology integration ensures optimal project outcomes, adding substantial value to their partnerships.

Henrik Wareborn, CEO of Velocys, emphasised the company’s unwavering commitment to remaining at the forefront of innovative SAF solutions. He expressed his confidence in Velocys’ ability to play a pivotal role in achieving net-zero aviation emissions within the next two decades.

How will Velocys use the newly raised fund

The recently secured US$40 million will provide crucial resources for Velocys to accelerate its technology development, scale production capabilities, and expand its team of experts. Recognizing the global demand for SAF projects, the company has already invested in scaling its reactor facility in Ohio, ensuring a stable supply of reactors for projects around the world. The initial capacity allows for the production of 12 reactors per year, sufficient for a typical commercial-scale SAF biorefinery, with plans to ramp up production as demand grows.

Industry experts reaction on Velocys

Investors backing Velocys share Wareborn’s optimism. Josh Dienstag, Chief Investment Officer of Carbon Direct Capital, highlighted Velocys’ “production capacity and leadership team” as key factors for delivering climate impact. Kevin Bone, Partner at Lightrock, expressed his confidence in Velocys becoming the “leading provider of SAF solutions” within the industry. May Liew, Investment Director at GenZero, emphasised the importance of Velocys’ technology in “scaling low-carbon fuels and paving the way for net-zero aviation.”

Velocys’ transition to a private company with significant new investment marks a critical step in their mission to decarbonize the aviation industry. By leveraging their advanced technology and strategic partnerships, the company aims to be a key player in shaping a more sustainable future for air travel.

Related Posts

Get daily funding news briefings in the tech world delivered right to your inbox.

Enter Your Email
join our newsletter. thank you