Case Study: aviation fuel from waste

REA Renewable Transport Fuels Group: Decarbonising trucks, trains, boats, and planes 3rd December 2019 Andrew Morris, Chief Financial Officer and Executive Director

2

The Challenge

*UK annual greenhouse gas emissions in MtCO2e

Transport sector remains the single biggest source of CO2 emissions

Critical to achieving global CO2 emissions targets

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Sustainable Aviation Fuels

*Source: ATAG (Air Transport Action Group)

We have over 17 years experience in developing and deploying

XTL projects Experience 1

Our technology has been operated at laboratory, pilot,

demonstration and commercial scale Scale 2

Velocys FT technology has operated on syngas derived from multiple

feedstocks including natural gas, landfill gas, coal and biomass

Feedstock 3

Velocys core personnel have been onsite for commissioning, startup

and operation at all scales

Presence 4

Velocys provides technology, integration and development

Using a ready available feedstock to deliver a high quality drop-in product

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Chemically

react the

syngas to

form long

chain

hydrocarbons

Chemically

cut the long

hydrocarbons

to form jet

fuel or diesel

Hydrocracker Fischer

Tropsch

Synthesis

Syngas

clean-up Gasifier

Waste Syngas Clean syngas FT product Finished

Physically and

chemically

remove

impurities

from the

syngas

Thermally and

chemically

break the

material into

its component

parts to

produce

syngas

Physical

preparation of

the feedstock,

removal of

remaining

recyclables

Waste to jet fuel process overview

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Synthetic FT fuel burns more cleanly than conventional fuel...

...as well as reducing net greenhouse gases by 70%

Diesel made using

Velocys process

Diesel from

filling station

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Altalto: Europe’s first commercial waste-to-jet fuel facility

``````

A collaboration between British Airways, Shell and

Velocys

Taking 600,000 tonnes of “black bag” waste to

create 68 million litres of clean drop-in fuel

A globally repeatable model

Target start construction in 2021, production 2024

8

Altalto plant walk through

• Site option secured in Immingham, North East Lincolnshire

• Planning application submitted, awaiting consent

• Supportive local community

Confidential 9

Altalto: Project status

10

Altalto revenue sources

Waste treatment fees

Development Fuel credits

Base fuels value

Three revenue streams

UK Renewable Transport Fuel Obligation

Gate fee on waste

Fuel value (at parity or modest premium)

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The potential for negative emission fuels

In parallel to the Altalto project, we are

developing Bayou Fuels, a biomass-to-

fuels project in Natchez, Mississippi

Our process provides a concentrated

stream of CO2 ready for capture and

storage

This carbon negative solution could be

replicated at our other sites

-150

-100

-50

0

50

100

Fossil (California2024 baseline)

Mississippi project(excl. CCUS)

Mississippi project(with CCUS)

gC

O2e/M

J

Carbon intensity (net CO2 entering atmosphere per unit of energy)

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What we need from Government

Incorporate Recycled Carbon Fuels into

the RTFO

Create an Office for Sustainable Aviation

Fuels

Create a CCUS investment framework

Establish CCUS transport and storage

infrastructure in the Humber cluster

2018 supply < 0.1 billion litres

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The future market for sustainable aviation fuel