Velocys, Inc., a wholly owned subsidiary of Velocys plc, has signed an agreement with Oxy Low Carbon Ventures, LLC (OLCV), to capture carbon dioxide (CO2) from Velocys’ planned Bayou Fuels biomass-to-fuels project in Natchez, Mississippi, and securely store it underground in a geologic formation.

Biofuel

Velocys signs agreement with Oxy Low Carbon Ventures to capture CO2

Velocys, Inc., a wholly owned subsidiary of Velocys plc (Velocys), has signed an agreement with Oxy Low Carbon Ventures, LLC (OLCV), to capture carbon dioxide (CO2) from Velocys’ planned Bayou Fuels biomass-to-fuels project in Natchez, Mississippi, and securely store it underground in a geologic formation.

OLCV, a wholly owned subsidiary of Occidental, will take, transport and store CO2 captured from the Bayou Fuels facility, when it is completed, enabling the production of transportation fuels that have a net negative carbon intensity, making it the first facility of its kind in the world.

The Bayou Fuels project will take waste woody biomass and convert it into transportation fuels, such as diesel for heavy trucks and sustainable aviation fuel, using Velocys’ proprietary Fischer Tropsch process. The integrated technical solution designed by Velocys is ideally suited to carbon capture, usage, and storage (CCUS); the CO2 is captured before it enters the atmosphere. OLCV is uniquely positioned to transport and store the CO2 by leveraging Occidental’s industry leadership in CO2 storage and utilisation. This combination of CCUS-ready technology and Occidental’s expertise in storing CO2 enables the Velocys facility to produce net negative carbon intensity fuels.