Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Developed a Carbon Capture and Storage (CCS) and solar power solution for the Mississippi Biorefinery Project, resulting in negative carbon intensity fuels.
• Achieved negative 125gCO2e/MJ equivalent for the Natchez Mississippi Project.

Social Achievements

• Implemented a three-year Long-Term Incentive plan (LTIP) based on equity options for a broad group of employees.
• Granted a special equity-based award to all employees.
• 27% of global employees were female (2018: 26%).
• One of the five Board members was female (2018: one of four).

Governance Achievements

• Followed the QCA Code of Corporate Governance.
• Established an Anti-Bribery and Corruption and Anti-Modern Slavery Policy; a Whistleblowing Policy; and a Policy on Equal Employment Opportunity and Diversity.
• Adopted a Share Dealing Policy and Dealing Code.

Climate Goals & Targets

Environmental Challenges

• Reliance on additional external capital for ongoing operations and project development.
• Dependence on strategic third-party project investment for reference projects.
• Potential for policy support to wane for climate change mitigation.
• Risks related to FT reactor and catalyst performance.
• Risks of technology integration with other licensors’ technology.
• Potential for supply chain delays.
• Risk of loss of intellectual property or key staff.
• Risk of competing technologies.
• Uncertainty surrounding Brexit.
• Risk of pandemics.
• Risk of fraud.
• Risk of asset impairment.

Mitigation Strategies

• Aggressive cost management and restructuring.
• Securing partner funding for projects.
• Proactive engagement with governments and organizations.
• Commercial-scale demonstration of FT reactors and catalyst.
• Selection of world-leading technology providers.
• Risk reduction strategies in project engineering.
• Competitive bidding process for procurement and construction.
• Robust Quality Assurance Program.
• Patent and IP protection, competitive compensation for staff.
• Plant integration optimization and modularization.
• Foreign exchange risk management, international geographical spread of customers.
• Pandemic risk policy, work-from-home capabilities.
• Internal controls, segregation of duties.
• Continuous asset valuation and impairment review.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: QCA Code

Sustainable Products & Innovation

• Fischer-Tropsch technology for sustainable fuels

Environmental Metrics

ESG Focus Areas

• Climate Change
• Economic Growth
• Job Creation

Environmental Achievements

• Significant life-cycle carbon reduction gains (at least 70%) and cleaner burning, with up to 90% reduction in particulates in sustainable aviation fuels.

Social Achievements

• Potential for job creation and economic growth in the sustainable fuels sector both in the UK and globally; By 2035, the development of a domestic industry for the production of sustainable fuels could generate a Gross Value Added (GVA) of up to £742m annually and support up 5,200 UK jobs. A further 13,600 jobs could be generated from the growing market for sustainable aviation fuels through global exports.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High cost of sustainable aviation fuels compared to fossil fuels.
• Limited demand for sustainable aviation fuels.
• Lack of production capacity for sustainable aviation fuels.
• Competition with road transport sector for sustainable fuels.
• Need for policy support to incentivize sustainable aviation fuel production.

Mitigation Strategies

• Government support for sustainable aviation fuel development and commercialization.
• Investment in sustainable aviation fuel production infrastructure.
• Development of a domestic industry for the production of sustainable fuels.
• Applying a multiplier to SAF to encourage production/investment.
• Incorporation of Recycled Carbon Fuels into the RTFO.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Focus on fuels produced from wastes and residues

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of sustainable aviation fuels

Reporting Standards

Frameworks Used: RSB

Certifications: ASTM D7566

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Sustainable aviation fuels contribute to these goals by reducing greenhouse gas emissions, creating jobs, and promoting economic growth.

Sustainable Products & Innovation

• Sustainable aviation fuels

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Aviation Fuel (SAF)

Environmental Achievements

• Bayou Fuels project re-optimized for maximum decarbonisation, achieving a negative carbon intensity score of -375g CO2e/MJ (previously -144g CO2e/MJ), abating carbon emissions equivalent to 1.1 million return trips from San Francisco to London per annum.
• Construction completed at new 52,000 sq ft reactor core manufacturing facility in Columbus, Ohio.

Social Achievements

• Appointment of new Chief Financial Officer, Senior VP Business Development and Technology Delivery, and new VP Engineering.
• Establishment of a Scientific Advisory Board for catalysis.
• Employee engagement remains high.

Governance Achievements

• Appointment of Philip Sanderson as CFO and executive director.

Climate Goals & Targets

Environmental Challenges

• Continued lack of finalized UK policy support for Altalto project.
• Volatility and weakness of global capital markets making future near-term project funding rounds more difficult.
• Material uncertainty over going concern due to need for additional funding.

Mitigation Strategies

• Announced a fundraise aiming to raise a minimum of £32 million (before expenses), including a placing, retail offer, open offer, and conditional issuance of convertible loan notes.
• Engaged a leading global investment bank to assist with securing development capital for reference projects.
• Secured long-term control of the Immingham site for the Altalto project through a financing arrangement with Foresight Group LLP.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and negative carbon intensity fuels.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Velocys' technology contributes to these goals by enabling the production of sustainable aviation fuel, reducing greenhouse gas emissions and promoting the use of renewable energy sources.

Sustainable Products & Innovation

• Sustainable Aviation Fuel (SAF)