Velocys plc announced that it has secured a purchase order and technical service agreements with Toyo Engineering Corporation (Toyo) for the use of Velocys technology in a publicly funded demonstration facility in Nagoya, Japan, as well as an advanced deposit for the use of the Velocys technology by Toyo in a subsequent commercial plant. Toyo has placed an order with Velocys, worth approximately $0.5 million (£0.4 million), to supply its Fischer-Tropsch (FT) technology, equipment and catalyst for a biomass-to-jet fuel demonstration facility currently under construction by a consortium of Japanese companies. In addition, Velocys has agreed that it will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for a future potential commercial plant in Japan with an advance deposit of $4 million (£3.2 million).

The deposit will be paid in a non-refundable tranche of $0.5 million (£0.4 million) and a further tranche which is potentially refundable and subject to milestones.