Velocys’ signing of a commerical agreement with Toyo under a
technology licencing model proves both the technology and the
commercial model in our view. The demonstration project has now run
successfully proving the technology at that scale. The decision to move to
a commercial agreement, with Velocys having received an advance fee as
part of the deal, proves that the company can operate a capital light
model with early revenues ahead of project development. We see the
decision by Toyo to proceed as an example of the strong demand for low
carbon fuel solutions of the type provided by Velocys.


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Proving the Technology and the Model
- Published:
08 Feb 2021 -
Author:
Adam Forsyth -
Pages:
6 -
Velocys’ signing of a commerical agreement with Toyo under a
technology licencing model proves both the technology and the
commercial model in our view. The demonstration project has now run
successfully proving the technology at that scale. The decision to move to
a commercial agreement, with Velocys having received an advance fee as
part of the deal, proves that the company can operate a capital light
model with early revenues ahead of project development. We see the
decision by Toyo to proceed as an example of the strong demand for low
carbon fuel solutions of the type provided by Velocys.