Velocys, the sustainable fuels technology company, is pleased to announce its final audited results for the year ended 31 December 2020.
· Fund raise of £21m (before expenses) in July 2020
· Additional £0.5m Future Fuels for Flight and Freight grant from the UK Department for Transport secured for the Altalto waste to jet fuel project
· Revenue of £0.2m (2019: £0.3m)
· Total deferred revenue of £8.2m including £2.1m invoiced and received from commercial customers during 2020
· Administrative expenses before exceptional items reduced by 7% to £9.2m (2019: £9.9m)
· Operating loss of £8.8m (2019: £9.6m) before exceptional items
· Loss before income tax for the year of £9.6m (2019: £9.9m)
· Cash at year end of £13.1m (2019: £4.8m)
Business Highlights including post period end activities
· Granted planning permission from North East Lincolnshire Council for the Altalto Immingham site
· Ongoing discussions to secure investment by one or more strategic partners into the Mississippi Biorefinery Project, which has undergone a design review and optimisation during the second half of 2020, increasing its capacity and attractiveness to investors and Sustainable Aviation Fuel off-takers
· Successfully completed the NEDO demonstration project in Nagoya, Japan, achieving 1500 hours of integrated conversion of wood chips to Sustainable Aviation Fuel
· We have advanced our Sustainable Aviation Fuel off-take discussions with major airlines in Europe and North America
· Abundant Feedstock supply available as evidenced by engagement with local suppliers
· Advancing additional technology licensing opportunities across three continents
· Delivered four Fischer-Tropsch reactors and completed catalyst loading for Red Rock Biofuels in Oregon, USA
· Integrated technology licensors on-boarded including TRI, Arvos, Air Liquide, Linde and Haldor Topsoe
· Appointed Worley as our engineering partner to manage delivery of our technology globally
· Invited to be a founding member of the UK Government's Jet Zero Council
· Appointed to the boards of the Renewable Transport Fuel Association and the Biotechnology Innovation Organisation
Post period end activities
· Altalto option agreement with British Airways plc extended to 31 March 2022 (Shell International Petroleum Company Limited withdrew from the agreement in January 2021)
· Collaboration agreement signed with Toyo Engineering Corporation, Japan in February 2021
Henrik Wareborn, CEO of Velocys, said:
"Velocys overcame unprecedented circumstances in 2020 due to the Covid pandemic restricting international travel and compelling all of our colleagues to work from home except those involved in reactor manufacturing, laboratory and site safety work.
"Our team demonstrated resilience and agility in adapting to the new conditions and ensured Velocys delivered all our contracted services and technology hardware to our customers.
"The successful fundraise in July 2020 enabled the Company to concentrate on client delivery from the second half of 2020 and onwards. In addition, we took the opportunity to further optimise the engineering for higher potential output and lower carbon intensity of our two reference projects in the UK and USA respectively.
"We are in a favourable position to take advantage of the growing global demand for climate change mitigation technology, specifically the decarbonisation of commercial aviation. The Company remains capital light and cost disciplined with a focus on deploying our end-to-end technology solution via partners, site owners and third-party developers worldwide.
"I thank my colleagues in Velocys and all our stakeholders for their dedication to our mission during the challenging year of 2020."