Velocys plc on May 18 released unaudited preliminary results for 2022, providing an update on the development of its Bayou Fuels Project in the U.S. and its Altalto Immingham project in the U.K. Both facilities will produce sustainable aviation fuel (SAF).

During 2022, Velocys said it continued to further optimize the design of the Natchez, Mississippi-based Bayou Fuels Project by incorporating a biomass boiler and carbon sequestration, which will enable the delivery of carbon-negative SAF. Offtake agreements, which were secured in 2021 covering 100 percent of SAF output, were updated to reflect the Inflation Reduction Act and subsequent guidance on the details of the tax credits, according to Velocys. In addition, levee construction at the plant site began, which Velocys called a key milestone for insurance and de-risking the Natchez site. Levee construction is expected to be complete during the fourth quarter of this year. Series A funding for the project is expected to launch during the second half of 2023, according to Velocys.

In the U.K., Velocys secured long-term control of the 78-acre Immingham project site and competed pre-FEED project milestones supported by the Green Fuels Green Skies grant awarded in 2021. The company also secured an additional £27.0 million grant under the U.K. Advanced Fuels Fund to deliver the FEED phase of the project.

Also in the U.K., Velocys was awarded a separate £2.5 million grant under the U.K. Advanced Fuel Fund to support ta new e-fuels project, which would produce SAF from carbon dioxide feedstock.

Velocys also reported that construction was completed last year on a new 52,000 square foot reactor core manufacturing facility in Columbus, Ohio. Fit out is being completed during the first half of this year.

A full copy of Velocys’ unaudited preliminary 2022 financial report is available on the company’s website.