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Velocys and Bechtel enter into construction agreement with Humber green jet fuel plant at the fore

Global growth eyed beyond º£½ÇÊÓÆµ and US projects as engineering giant starts work on Immingham FEED phase delivery

Velocys fly through

The company behind a huge green jet fuel plant set to be built on the South Humber Bank has entered into a major collaboration with one of the biggest construction firms in the world.

US engineering giant Bechtel will work on project delivery for Velocys, the Oxford University spin out that is in a joint venture with British Airways to develop the consented refinery. Initially the focus will be on the £350 million Altalto Immingham development and a sister Stateside project, with global growth for the sustainable aviation fuel solutions eyed.

The early-stage hydrogen and carbon capture feedstock project in the º£½ÇÊÓÆµ is also on the radar, with both domestic plans backed with almost £30 million by the government last month.

Read more: CBI Humber director on 2023 agenda for Net Zero cluster built on a £15b vision

A master relationship agreement has been executed between the two, with Velocys describing it as “one of the world’s most respected engineering companies”. It sets out a route map for the companies to develop an engineering, procurement and construction execution model.

Henrik Wareborn, chief executive of Velocys, said: “The master relationship agreement with Bechtel is an important step towards the provision of world class EPC capability and capacity to the expanding Velocys project portfolio. Bechtel is one of the world’s most respected engineering companies. Working with Bechtel will give added value to current and future clients with respect to successful project delivery.”

President of Bechtel Energy, Paul Marsden, front left, and Velocys chief executive Henrik Wareborn, front right, sign the master relationship agreement, watched by colleagues George Whittaker, Betchell's general manager for energy transition, back left, and Andy Bensley, Velocys' senior vice president and global head of business development and technology delivery.(Image: Bechtel)

Bechtel - behind Shell’s emerging Pennsylvania Petrochemicals Complex, one of the largest ongoing US construction projects and Western Sydney Airport in Australia - has been operational for 125 years.

Under a separate continuing technical services agreement, Bechtel is providing front end project engineering and other technical services to support the development of the Velocys project portfolio, with a focus on delivery of the Altalto project’s front-end engineering and design phase, following the funding win, with £27 million of the £29.5 million going to that.