(Alliance News) - Velocys PLC on Monday announced that it had been awarded two grants from the UK government's Advanced Fuels Fund.
The Oxford, England-based fuel technology company said it had been awarded a GBP27 million grant from the UK Department for Transport's Advanced Fuels Fund for the Altalto Immingham Sustainable Aviation Fuel project.
The Altalto Immingham project, being developed jointly by Velocys and British Airways PLC, is intended to deliver a waste-to-SAF plant in Immingham, UK. The company said the grant will the completion of the front-end engineering design stage of the project.
The grant will be distributed between December 2022 and March 2025, conditional upon the receipt of private sector matched funding. The company said the Altalto Immingham project had received letters intent from a number of existing and new partners for matched funding requirement.
The first tranche of private funding is set to be in place by April 2023.
Velocys' cash contribution to the project over the next two years from April 2023 will be no more than GBP8 million, the company said, adding that this figure could be reduced by bringing in additional investors.
Chief Executive Officer Henrik Wareborn said: "We welcome this clear commitment from Government to having commercial SAF plants built in the UK. We are delighted that a number of large commercial companies have indicated their support for the project through indications of matched funding contribution and the provision of services to progress the project."
Velocys also announced that it had received an additional GBP2.5 million from the same fund to contribute its technology to an e-fuels project, known as "e-Alto" in collaboration with multiple new and existing partners, including Clariant Catalysts and Technip Energies NV.
Velocys shares were up 18% at 5.21 pence per share on Monday morning in London.
By Harvey Dorset, Alliance News reporter
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