Velocys PLC Altalto Immingham Project Update (8457Y)
May 10 2023 - 2:00AM
UK Regulatory
TIDMVLS
RNS Number : 8457Y
Velocys PLC
10 May 2023
10 May 2023
News Release
Velocys plc
("the Company")
Altalto Immingham Project Update
Velocys plc (VLS.L), the sustainable fuels technology company,
is pleased to announce that further to the award of the grant from
the UK Government's Department for Transport ("DfT") Advanced Fuel
Funds of up to GBP27 million for the Altalto Immingham Sustainable
Aviation Fuel ("SAF") Project, announced on 12 December 2022,
Altalto Ltd* has completed the work necessary to claim the first
tranche (GBP7 million) of the grant up to 31 March 2023. In
addition, as planned, the project has obtained the first tranche of
private funding for the period from 1 April 2023 from its existing
private sector participants.
The Altalto project's aim is to deliver a commercial
waste-to-SAF plant in Immingham, UK. The DfT grant and matched
funding will enable Altalto to complete the Front-End Engineering
Design ("FEED") stage of the project. Following the completion of
FEED and a successful final investment decision, construction will
commence in 2025 with full commercial operation expected in
2028.
Since the award of the DfT grant in December, the Altalto
Immingham Project has entered into a number of technology license
and engineering services agreements with project technology
licensors and the FEED contract with Bechtel Limited, utilising the
first tranche of grant funds provided by the DfT. Pursuant to the
terms of the grant, further draw down of the grant is subject to
demonstration of project milestones with matched funding
requirements to be met over the two years to 31 March 2025.
In March 2023, the Company announced the appointment of a
leading global investment bank to advise on the financing of
Velocys' Reference Projects and to assist in obtaining the matched
funding from private sector investors, which is on track to be in
place during Q4 2023.
As previously announced, Velocys' cash contribution to the
Altalto Project over two years from April 2023, including its
contribution to the first tranche of private funding of GBP1
million, is not expected to exceed GBP8 million, with Velocys
intending to recover any funding it provides at the earlier
development stages (as from 1 April 2023 onwards) following receipt
of third party project investment.
* a wholly owned subsidiary of the Company.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Philip Sanderson, CFO +44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint
Broker)
Hugh Rich (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)
James Thomas (Corporate Advisory) +44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly +44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton +44 20 7466 5000
--Ends-
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels
technology company, traded on the AIM, providing customers with a
technology solution to enable the production of negative Carbon
Intensity synthetic, drop-in fuels from a variety of waste
materials. Synthetic fuel is the only commercially available,
permanent alternative to fossil aviation fuels. The Velocys
technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto Immingham,
UK) 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 synthetic fuel production
in response to the clean energy transition, with significant
additional positive air quality impacts.
www.velocys.com
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END
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