Velocys Reduces MicroFTL Technology Deployment Costs by Over 30% Through Standardization

Velocys Achieves Over 30% Cost Reduction for MicroFTL Technology Deployment

In a groundbreaking announcement, Velocys has successfully implemented strategies to enhance manufacturing and delivery procedures, resulting in a remarkable reduction of over 30% in the total investment costs associated with its microFTL™ technology. This substantial cost efficiency is set to accelerate two flagship projects aimed at producing Sustainable Aviation Fuel (SAF) using advanced Fischer-Tropsch (FT) technology: the Altalto project in the UK and NovaSAF™ 1 in Uruguay.

As global mandates for SAF increasingly gain momentum, stakeholders, including developers and investors, are faced with the pressing challenge of reducing costs. While policy incentives and the development of offtake frameworks play critical roles, the long-term scalability of SAF production hinges on significantly lowering the capital required to establish and operate commercial facilities. Responding to these market demands, Velocys took a closer look at its Fischer-Tropsch technology offerings.

By collaborating closely with strategic manufacturing partners, the company streamlined reactor fabrication processes, emphasized standardization, and improved delivery methods. These adjustments led to design optimizations that have dramatically lowered overall installed costs without sacrificing key aspects such as performance, operability, or technology readiness.

Overview of Ongoing Projects

The Altalto waste-to-SAF project is currently approaching the front-end engineering and design (FEED) phase. This project has received prior funding from the UK Department for Transport's Advanced Fuels Fund, and recent assessments have led to a significant reduction in overall capital expenditure (CAPEX). By adopting a proactive execution strategy that incorporates both stick-built and modular construction approaches, Velocys has successfully minimized project risks while cutting previous cost predictions by 30%. Such enhancements are expected to substantially improve the economic viability of the project as it prepares for a final investment decision.

Simultaneously, in Uruguay, NovaSAF 1, a biogas-to-SAF project managed by Syzygy Plasmonics, is set to leverage the updated FT configurations. Through in-depth collaboration, Velocys identified opportunities to ensure that its offerings align more closely with the client’s objectives relating to speed, efficiency, and cost management. The design underwent a modularization process aimed at concentrating on critical process needs, eliminating non-essential features and substituting custom components with proven, standardized parts. This reworking has resulted in an impressive 50% reduction in CAPEX from the original expectations. Recently, the project achieved a major commercial milestone by signing a long-term offtake agreement with Trafigura, bringing it closer to making a final investment decision.

The Implications of Cost Efficiency in the SAF Sector

These case studies exemplify how FT-based SAF production can simultaneously address the significant challenge of decarbonizing the aviation sector, providing meaningful lifecycle carbon reductions while achieving commercial viability. Mathew Viergutz, CEO of Velocys, emphasized the importance of capital efficiency in the current SAF market, stating, "The consistent feedback we receive from developers and investors highlights that capital efficiency matters. We are listening. By standardizing the manufacturing and delivery of our FT technology, and collaborating with adept industrial partners, we have unlocked substantial cost reductions that vitalize project feasibility. The advancements seen in Altalto and NovaSAF 1 demonstrate that FT SAF is not just technically validated but increasingly attractive to investors."

As Velocys continues to apply these manufacturing and delivery efficiencies across its broader portfolio of projects, the company reinforces its commitment to becoming a long-term partner in the technological landscape, focused on enabling commercially scalable SAF production around the globe.

About Velocys

Velocys stands at the forefront of innovation in the production of sustainable aviation fuels and other low-carbon fuels via its proprietary Fischer-Tropsch process. The company’s microFTL™ microchannel reactor technology facilitates efficient and modular production that can be implemented globally, positioning Velocys as a leader in this emerging market. For more details, visit www.velocys.com.

Note: microFTL™ is a trademark of Velocys. NovaSAF™ is a trademark of Syzygy Plasmonics.