Agreement reached for £4.5m takeover of SAF firm Velocys

A takeover deal worth £4.5 million has been agreed for Velocys, the company behind plans for a waste to sustainable aviation fuel (SAF) plant in Immingham.

Velocys is developing the plant to turn commercial waste into sustainable air fuel, due to be operational by 2028

The company will be taken over by a newly formed company called Madison Bidco, a consortium “indirectly owned by a fund advised by Lightrock, a fund advised by Carbon Direct Capital, GenZero and  Kibo Investments”.

The deal was announced this morning, where plans for approximately £31.5 million of growth capital to Velocys was also declared, conditional upon the acquisition becoming effective.

In connection with the acquisition, the Carbon Direct Fund has agreed to provide a secured bridging loan of £3.5 million with a view to providing sufficient capital for Velocys through to the acquisition becoming effective.


Velocys, under a ‘joint development agreement’ with British Airways, is behind a project to deliver a commercial waste-to-SAF plant in Immingham, UK (see letsrecycle.com story).

The project could convert up to 500,000 tonnes of commercial solid waste into fuel for planes and cars each year.

The company has already received £7 million from the Department for Transport. A further draw down of the £27 million grant is subject to demonstration of project milestones with matched funding requirements to be met over the two years to 31 March 2025.

The company posted a £14.5m operating lost for 2022 earlier this year.

A statement this morning from Velocys confirming the takeover said: “The boards of directors of Madison Bidco Limited and Velocys plc are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of Velocys.”

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