Velocys PLC Velocys and British Airways extend Altalto option (9424T)
30 March 2021 - 6:14PM
UK Regulatory
TIDMVLS
RNS Number : 9424T
Velocys PLC
30 March 2021
News release
Velocys plc
("Velocys" or "the Company")
30 March 2021
Velocys and British Airways extend Altalto option
Velocys, the sustainable fuels technology company, is pleased to
announce that it has jointly agreed to extend the current option
agreement with British Airways for the Altalto project to 31(st)
March 2022. Exercise of the option would give both parties equal
equity ownership (50/50) of Altalto Ltd and the right to appoint a
Director. Details of the original option agreement were previously
announced on 12 May 2020.
The Company also welcomes the UK Government announcement (16
March 2021) o f the launch of a new GBP15m 'Green Fuels, Green
Skies' grant funding competition. This funding is intended to
support the production of Sustainable Aviation Fuel (SAF). Altalto
Immingham Ltd intends to apply for a grant in this competition, on
behalf of Velocys and British Airways. The results of the
competition are expected to be announced by the Department for
Transport on 31 July 2021.
The Company expects the project will be in a position to launch
its front-end engineering design (FEED) later in 2021 subject to
confirmed UK Government policy support and the addition of new
investment partners in the project.
In addition, on 25 March 2021 the Secretary of State for
Transport, the Rt Hon Grant Shapps MP, opened a Consultation into
amending the Renewable Transport Fuel Obligation (RTFO) to increase
the carbon savings it achieves. Velocys welcomes the launch of this
process, fully supports its objectives and will be actively
participating in the Consultation. The Secretary of State notes
that expanding the RTFO to include recycled carbon fuels would
"transform the commercial viability" of waste-to-fuel technology
and support pioneering projects in the UK looking to develop
sustainable aviation fuel from household waste.
Henrik Wareborn, CEO of Velocys, said:
"I thank British Airways for their renewed commitment to our
joint efforts to advance the Altalto waste-to-SAF project. Our
announcement today reflects the strength of our partnership and
commitment to the project.
SAF remains critical to the decarbonisation of aviation; it is
applicable to all flights including long-haul and can be used
immediately with no need for modifications to aircraft fleets or
refuelling infrastructure. Velocys has the technology to enable the
production of SAF from wastes, avoiding landfill or incineration,
and our technology can be coupled with Carbon Capture and Storage
(CCS) to achieve net zero fuels. Policy support remains critical to
the establishment of UK SAF facilities, but with the right support,
we can enable a clean future for aviation. Whilst there is no
guarantee that the Altalto project's application to the Green
Fuels, Green Skies competition will be successful, we are delighted
to see this new Government initiative to support the production of
SAF."
Sean Doyle, CEO of British Airways, said:
"Despite the crisis in global aviation, it is vital for our
future that we continue to address climate change and we remain
focused on playing our part to reduce the impact we have on the
planet. For the last 100 years we have connected Britain with the
world and the world with Britain, and to ensure our success for the
next 100, we must do this sustainably.
"Progressing the development and commercial deployment of
Sustainable Aviation Fuel is crucial to decarbonising the aviation
industry and to meet our commitment to carbon net zero by 2050. The
UK has the experience and resources needed to become a global
leader in the deployment of such sustainable aviation fuel
production facilities, and we need Government support to drive
decarbonisation and accelerate the realisation of this vision."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
For further information, please contact: Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head of Communications & Sustainability +44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Dan Norman (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance) +44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
Sarah Mather (Corporate Advisory) +44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly +44 20 3897 1830
Field Consulting (General PR)
Hannah McLaughlin +44 20 3697 7953
Notes to Editors
Velocys is an international UK-based sustainable fuels
technology company. Velocys designed, developed and now licenses
proprietary Fischer-Tropsch technology for the generation of clean,
low carbon, synthetic drop-in aviation and road transport fuel from
municipal solid waste and residual woody biomass.
Velocys is at present developing two reference projects: one in
Natchez, Mississippi, USA (incorporating Carbon Capture,
Utilisation and Storage) and one in Immingham, UK, to produce fuels
that significantly reduce both greenhouse gas emissions and key
exhaust pollutants for aviation and road transport. Originally a
spin-out from Oxford University, in 2008 the Company acquired a US
company based on complementary reactor technology developed at the
Pacific Northwest National Laboratory. Velocys is headquartered in
Oxford in the United Kingdom.
www.velocys.com
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