Velocys PLC Exercise of Option over Altalto Project Site (9647V)
December 17 2021 - 3:01AM
UK Regulatory
TIDMVLS
RNS Number : 9647V
Velocys PLC
17 December 2021
Velocys plc
("Velocys" or the "Company")
Exercise of Option over Altalto Project Site
Velocys plc (AIM: VLS), the sustainable fuels technology
company, today announces that further to the announcement of 25
November 2021 and following completion of the fundraising, Altalto
Immingham Ltd ("Altalto") (a subsidiary of Velocys) has exercised
an option agreement to acquire Rula Developments (Immingham)
Limited ("RDIL") with an initial part-payment of GBP2.5 million.
RDIL owns the site of the proposed Altalto project, near Immingham
in North East Lincolnshire, which is being jointly developed by
British Airways PLC ("BA") and Velocys.
Pursuant to the agreement, the total consideration to acquire
the site is being satisfied by a GBP2.5 million part-payment,
funded through an inter-company loan from Velocys to Altalto. A
further deferred consideration amount of up to GBP8.5 million is
payable by 30 September 2022. As previously announced, Velocys is
discussing the onward purchase of RDIL (and subsequent grant back
to Altalto of a future option to purchase RDIL within 3 years) with
a third party with the intention that the purchase price for RDIL
paid by the third party will cover the remaining consideration
payable by Altalto in 2022.
Detailed engineering for the Altalto project is expected to
commence in 2023. Financial close is expected in 2024, with
construction of the plant being targeted to commence in 2024 and to
be completed by mid-2026, following which commissioning and
start-up will commence, with full scale commercial operation
expected in 2027.
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation 596/2014/EU (MAR).
- END -
Enquiries:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
& Sustainability +44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint
Broker)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
Hugh Rich (Corporate Broking) +44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint
Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
Liam Zabludowicz (Corporate Advisory) +44 20 7408 4090
Buchanan (Financial PR)
Helen Tarbet
Simon Compton +44 20 7466 5000
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly +44 20 3897 1830
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels
technology company, traded on the AIM, providing clients with a
technology solution to enable the production of negative Carbon
Intensity synthetic, drop-in fuels from a variety of waste
materials. SAF ('Sustainable Aviation Fuel') is the only
commercially available, permanent alternative to fossil aviation
fuels.
The technology is IP-protected in all major jurisdictions.
Two reference projects in the US and UK (Bayou Fuels and
Altalto) are designed to accelerate the adoption and standardise
the Velocys proprietary Fischer Tropsch (FT) technology with an
integrated end to end solution, including renewable power and
carbon sequestration. Velocys is enabling commercial scale SAF
production in response to the clean energy transition.
Velocys technology pathway is enabling the next generation of
low carbon sustainable fuels with significant additional positive
air quality impacts.
www.velocys.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBQLLFFLLZFBL
(END) Dow Jones Newswires
December 17, 2021 03:01 ET (08:01 GMT)
Velocys (LSE:VLS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Velocys (LSE:VLS)
Historical Stock Chart
From Sep 2023 to Sep 2024