Green jet fuel developer Velocys has agreed deals with two major airlines to take all the output from its emerging US refinery - leading to an industry call for further support of the 海角视频 plant.
The company is behind the Bayou Fuels project in Mississippi and Altalto Immingham, on the South Humber Bank.
It has today entered into a memorandum of understanding with Southwest Airlines and IAG - the group behind British Airways, Aer Lingus and Iberia.
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The latter is also a major backer of the consented South Humber Bank proposal.
Luis Gallego, chief executive of IAG, said: “IAG is investing $400 million in the development of sustainable aviation fuel in the next 20 years. This new agreement is another important step towards achieving our goal of 10 per cent sustainable aviation fuel use by 2030.
“Sustainable aviation fuel is a critical element for the decarbonisation of the aviation industry. Clear policy support is needed to attract investment to construct the necessary plants to deliver enough supply for the airline industry.
"This project has benefited from strong policy support from the US, creating highly valued green jobs and economic growth. We would encourage the 海角视频 and the EU to follow suit in supporting the development and deployment of green technologies including carbon capture.”
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As reported, the Altalto site has been backed with early stage funding from the government, and is being designed to be able to tap into carbon capture and storage proposals for the region.
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It sits close to both the proposed Zero Carbon Humber network, part of the successful track one East Coast Cluster bid, and the V-Net Zero plan.
Southwest anticipates taking 219 million gallons over 15 years, from 2026, when the biorefinery is expected to be commissioned. IAG has ring fenced 73 million gallons over 10 years. Together they would see 8.7 million tonnes of CO2 taken out of aviation.
Southwest’s agreement also includes a first rights option for any expanded production. IAG’s deal includes an option to invest in project development Stateside.
The intention is to convert the non-binding MOU into a definitive offtake agreement within the next six months.
Henrik Wareborn, chief executive of Velocys, welcomed both agreements, stating certainty of revenue should enable construction and capital financing. He said: “Today’s announcements are a major milestone which further strengthens our conviction in the important role sustainable fuel will play in the future of the aviation industry.
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“These agreements show that commercial scale demand for SAF can be satisfied already by the middle of this decade and that Velocys plays a pivotal role in enabling this.”
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