Velocys welcomes UK Government SAF policy update

In the UK, sustainable fuels technology firm Velocys welcomed the recent consultation paper from the UK Government which contains a number of proposals aimed at supporting and financing the development of the sustainable aviation fuel industry. Velocys believes this will help to support the further development of its UK reference project, Altalto Immingham and other UK pipeline opportunities, building on the recent UK government grants awarded from the Advanced Fuel Fund. The Gasification plus Fischer Tropsch (FT) process has been identified as the main pathway to sustain SAF uptake to 2030 and beyond. Velocys noted that its patented FT process is well positioned to fulfill this demand. The proposed SAF mandate offers a guaranteed level of demand and creates a long-term requirement to supply SAF, provides incentives to SAF producers in the form of tradeable certificates and signals the vital role SAF will play in the future of UK aviation. The tradable certificates are intended to close the gap between the cost of jetfuel and the cost of SAF, with additional certificates awarded in proportion to avoided carbon dioxide emissions. The proposals in this consultation will help support the ongoing development and financing of the company’s Altalto Immingham reference project, the firm added. “Velocys’ technology is immediately ready to support commercial scale production of SAF with ultra-low carbon intensity and input from a range of feedstocks,” Henrik Wareborn, the CEO of Velocys, said.

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