LONDON, UK: Velocys plc, the sustainable fuels technology company, executed a master relationship agreement (MRA) with Bechtel Energy, one of the world’s most respected engineering companies.
The MRA sets out a route map for the parties to collaborate with each other with the objective of developing an EPC execution model for the Company’s sustainable fuels projects.
This collaboration will initially focus on Velocys’ two main reference projects – Altalto Project in Immingham, UK and Bayou Fuels Project in the US – and the recently announced e-Alto power-to-liquids project in the UK, all subject to the terms of future contracts.
However, 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 £27 million awarded to Velocys.
Henrik Wareborn, CEO of Velocys, said: “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.”
Paul Marsden, President, Bechtel Energy, said: “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.”