Sustainable fuel technology company Velocys has signed a strategic framework agreement with Koch Project Solutions (KPS) to develop a biorefinery project in Natchez, Mississippi, that will utilise both renewable power and carbon capture and storage.

Sharing the news today (June 30th), Velocys said that the project is expected to produce approximately 33 million US gallons/year of sustainable aviation fuel (SAF) with negative carbon intensity and naphtha made from woody biomass.

The conversion process from gasification of wood chips to FT synthesis generates a significant volume of biogenic carbon dioxide (CO2) as a by-product. This CO2 is clean, of high concentration and dry and can be used for commercial purposes.

Fuels produced from the facility will meet all requirements and regulations to be sold in the US and generate Federal and State credits under RFS-2 and the relevant State Low Carbon Fuel Standards.

Upon successful execution of the contract, KPS will be responsible for constructing and commissioning this first-of-its-kind facility.

Commenting on the agreement, Henrik Wareborn, CEO of Velocys, said, “The framework agreement with KPS is an important step in the progress of staged development of the Bayou Fuels biorefinery in Mississippi, US, which will support a financing package for the FEED phase of the project.”

“The project will deliver SAF with a carbon intensity of -144g CO2e/MJ through the combination of biogenic feedstock, renewable power and carbon capture and storage. Such fuels significantly contribute to improved air quality, by reducing particulate emissions by up to 90%, lower nitrogen oxides and 99% lower sulphur emissions compared to fossil fuels and standard aviation fuel.”

Velocys continues to retain Worley as engineering partner for the development of pre-feasibility, feasibility and fully integrated technology packages for all Velocys projects, including the planned FEED phase for this Bayou Fuels project.