Velocys Secures $40 Million Investment in Deal, Catalyzing Sustainable Aviation Fuel Technology
Oxford-Based Energy-Tech Company Aims to Decarbonize Air Travel Industry
In the relentless pursuit of a cleaner and more sustainable future, Velocys, an innovative energy-tech company headquartered in Oxford, United Kingdom, has secured a substantial investment of $40 million (approximately £31.7 million) through a rescue deal that has transformed the firm into an entirely privately-held entity.
Founded in 2004, Velocys has been at the forefront of efforts to revolutionize the aviation industry, which contributes an astounding 800 megatonnes of carbon emissions annually. The company’s unwavering commitment to this mission has been bolstered by significant government support in the form of grant funding over the years.
Avoiding Insolvency and Embarking on a New Chapter
Despite its noble mission and dedicated efforts, Velocys faced the daunting prospect of insolvency in 2023. However, in a remarkable turn of events, December of the same year witnessed the company reaching an agreement for acquisition by a coalition of investors for a sum of £4.5 million. This strategic move facilitated Velocys’ delisting from London’s AIM market, where it had been a publicly traded company since 2006.
Fresh Capital to Accelerate Delivery of Groundbreaking Technology
With this newly acquired financial backing, Velocys is poised to expedite the implementation of its pioneering technology across customer projects. This investment serves as a catalyst, propelling the company forward as it continues to develop innovative solutions for sustainable aviation fuel (SAF).
Leadership Expresses Enthusiasm for the Future
Jesper Wareborn, the CEO of Velocys, exudes optimism and determination as he shares his thoughts on this significant development: “This deal marks a momentous occasion for Velocys, safeguarding the future of our pioneering technology and our industry-leading talent. It enables us to maintain our unwavering focus on driving innovation in sustainable aviation fuel solutions as we enter a transformative era for our industry.”
Wareborn also reflects on the company’s journey thus far, expressing gratitude for the contributions of numerous individuals and entities: “Over the past two decades, Velocys has played a crucial role in spearheading the development of breakthrough technologies and processes that pave the way for the efficient production of lower-carbon fuels. We, alongside our new partners, are filled with excitement for the prospects that the next twenty years hold.”
Investor Coalition Shares Vision for a Sustainable Future
The investor coalition that has joined forces to support Velocys comprises Carbon Direct Capital, Lightrock, GenZero, and Kibo Investments. These entities share a resolute belief in the transformative potential of drop-in fuels as the most promising and scalable solution to