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ABFA Video Series Continues: Velocys’ Microchannel Technology Creates the Diesel and Jet Fuel for the Future  

Friday, September 19, 2014

ABFA is proud to share the latest installment of its ongoing video series, which tells the stories of innovation within the advanced biofuels industry through the companies producing renewable gallons and breaking ground on new facilities – our members. Today we profile Velocys, a world leader in the design and development of microchannel process technology and super-active catalysts. Velocys holds more than 900 patents worldwide covering various aspects of the technology, which enables gas-to-liquids (GTL) plants to convert clean natural gas or renewable resources into diesel or jet fuel.

We spoke with Jeff McDaniel, Commercial Director of Velocys, about their technology, the future of advanced biofuels and the role of public policy on the growing industry. “What we see advanced biofuels being able to do is increase the overall robustness of our fuel supply system. We see many industries that are moving to decentralized production, we think this is possible with fuel production. We can use resources, a wide array of resources that are available here in America that can produce fuels here in America,” remarked McDaniel.

Velocys’ modular plants can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems, which allows them to take a decentralized approach to fuels production that can address an untapped market of up to 25 million barrels of fuel a day.

To date, more than $300 million has been invested in the development of Velocys’ technologies. “Our first facility will be located at a Waste Management land fill site in Oklahoma and it will convert the land fill gas, a renewable resource, along with natural gas into the diesel, jet fuel and other products.”

So, what message does McDaniel believe the industry needs from Washington to succeed? “The real need in the policy front is for consistency. You know these facilities, as with any type of refinery or production facility, have a significant capital investment. Investors want to know that there is a framework they can rely upon. So understanding what are the various incentives, credits, etcetera, and having foresight for where they’re going to be in the future matters tremendously,” continued McDaniel. “So, as I say the keyword is consistency.”

You can watch the interview video above or check out ABFA’s video center for previous member profiles. Make sure to stay tuned to this blog for additional perspectives from the companies leading America’s transition to a renewable fuels future.

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