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The Business Magazine July 2024
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SAF fuel company saved by new investors

Oxford sustainable fuel tech Velocys reports £3.3 million first half profit
6 December 2023

Velocys, the Oxfordshire-headquartered sustainable fuels technology company, has avoided insolvency thanks to new investors.

Velocys, based at the Oxford Science Park, and which launched its new 52,500 sq ft technology facility in Plain City, Ohio in October, announced that it was to be taken over by a newly formed company indirectly owned by funds advised by private equity company Lightrock and investment firms Carbon Direct Capital, GenZero and Kibo Investments.

The company, Madison Bidco Ltd, will provide up to £31.5 million of growth capital which is expected to ensure that Velocys and its management have the capital resources needed to deliver against its medium-term strategic plans.

Bidco said that it believes that the production of sustainable aviation fuel ("SAF") is a compelling market opportunity given the regulatory support, demand pull by airlines and increased technology readiness. It believes Velocys is well positioned to capitalise on these sector tailwinds, given its patented integrated Fischer-Tropsch reactor and catalysis solution and its pipeline of commercial licensing opportunities.

READ MORE: Velocys completes USA facility

Velocys' new 52,500 sq ft technology facility in Plain City, Ohio is expected to  be fully commissioned for production from mid-2024. Eventually the facility will house approximately 35 employees when in full production. The new site has the capacity to produce approximately 48 cores per year, enough to support 12 reactors which is the typical requirement for the operation of a single commercial scale SAF biorefinery, with a capacity to convert approximately 1TWh per year of energy. It is expected that the facility will have sufficient production capacity to meet projected orders until 2028, including those from Velocys' two biorefinery reference projects - Bayou Fuels, Mississippi and Altalto, Immingham, Lincolnshire.


Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.

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