Growth investor consortium infuses capital into Velocys

Velocys is a sustainable aviation fuel technology company.

  • Henrik Wareborn will continue to lead Velocys’ management team as CEO
  • Carbon Direct Capital, Lightrock, GenZero and Kibo Investments are among the investors
  • Velocys is based in Oxford, UK

A consortium of growth investors, including Carbon Direct Capital, Lightrock, GenZero and Kibo Investments, have invested $40 million of growth capital in Velocys, a sustainable aviation fuel (SAF) technology company, following the completion of its take-private on 18 January.

Oxford, UK-based Velocys has invested to scale its reactor facility in Plain City, Ohio, to ensure a stable supply of reactors for delivery to SAF project owner-operators. Its 52,500 square foot reactor facility will be able to produce an initial 12 reactors per year.

The funds will be used to accelerate the delivery of Velocys’ proprietary technology to customer projects while building its technology leadership and scaling its production, according to a release.

Henrik Wareborn will continue to lead Velocys’ management team as CEO.

“Decarbonising the global aviation industry will require innovative solutions that can be adopted with ease and at scale,” said May Liew, investment director at GenZero. “This is where Velocys’ pioneering Fischer-Tropsch reactor is relevant, with its modularity and efficiency to support the development of advanced biofuel applications.

“By leveraging technology to transform waste materials into sustainable aviation fuel, Velocys is well positioned to play a key role in scaling the use of low-carbon fuels to pave the way towards net-zero aviation.”

Velocys expects demand for sustainable aviation fuel to accelerate given the confluence of regulatory support and higher readiness levels of drop-in fuel technologies, the release said. For instance, new EU rules will require suppliers to ensure that 2 percent of fuel made available at EU airports is SAF in 2025, 6 percent in 2030, 20 percent in 2035 and 70 percent in 2050.

Airlines are also expected to drive growth in demand for SAF, the release said. Over 490,000 flights were partially powered by SAF in 2023, from just 500 in 2016.

New York-based Carbon Direct Capital is a growth equity investment firm focused on carbon management technology.

Lightrock is a global impact investor backed by LGT. It is based in London.

GenZero is an investment platform company focused on accelerating decarbonisation globally. It is founded by Temasek.

Kibo Investments is a Singapore-based private investment office with a focus on climate technology.