May 4 (Renewables Now) - UK-based renewable fuels start-up Velocys Plc (LON:VLS) has licensed its technology that produces renewable jet fuel and diesel from forestry by-products to the Red Rock Biofuels LLC biorefinery in the US.
The company said today it has received a "notice to proceed" to start manufacturing of its Fischer-Tropsch reactors and catalyst for the biorefinery, which has moved into construction in Lakeview, Oregon.
The plant, a subsidiary of IR1 Group LLC, will use forestry residue to produce 15 million gallons (56.8 million litres) per year of renewable transportation fuels including diesel and jet fuel.
As a licensor for its technology, Velocys expects to receive around USD 15 million (EUR 12.5m) of revenues during the construction and early operation stages and an additional USD 30 million or more over the lifetime of the plant. It has already been paid more than USD 6 million.
Red Rock Biofuels will sell all of the jet fuel produced to several airlines. According to the announcement, the facility will produce enough jet fuel to fuel 1,800 round trips per year from Portland, Oregon to San Francisco.
Velocys said this is its second commercial license sold. The first is ENVIA, the company's commercial reference plant. "The successful funding of this project is a validation of the commercial viability and bankability of Velocys’ technology," said chief executive David Pummell.
Velocys is also developing its first own biorefinery in Natchez, Mississippi.
(USD 1 = EUR 0.836)