- Corporate News
Velocys to collaborate with Bechtel on sustainable fuel projects
Velocys plc (VLS.L), based in Oxford, UK, has signed a master relationship agreement (MRA) with Bechtel Limited, to set out a route map for the two parties to collaborate in developing an EPC (engineering, procurement and construction) execution model for the company’s sustainable fuels projects.
This collaboration will initially focus on Velocys’ Altalto Project in Immingham, UK, the Bayou Fuels Project in the U.S.A., and the recently announced e-Alto power-to-liquids project in the UK, all subject to the terms of future contracts. The MRA also covers other third-party projects that may be introduced by either Bechtel or Velocys.
Under a separate continuing technical services agreement, Bechtel is providing front end project engineering and other technical services to support the development of Velocys’ Sustainable Aviation Fuel (SAF) project portfolio. In particular, Bechtel is preparing to commence work on delivery of the Altalto Project Front-End Engineering and Design phase (FEED) following the recent UK government grant funding of up to GBP27 million (USD33.5 million) awarded to Velocys.
“The master relationship agreement with Bechtel is an important step towards the provision of world class EPC capability and capacity to the expanding Velocys project portfolio. Bechtel is one of the world’s most respected engineering companies. Working with Bechtel will give added value to current and future clients with respect to successful project delivery,” said Henrik Wareborn, CEO of Velocys.
“We are committed to supporting revolutionary energy transition projects designed to reduce global carbon emissions. As part of Bechtel’s portfolio in sustainable fuels, we are excited to collaborate with Velocys and look forward to realising the potential of these facilities to introduce sustainable fuel options for global markets,” Paul Marsden, president of Bechtel Energy, said.