VLS.L Share News (VLS)

(Sharecast News) - Renewable fuels company Velocys announced on Tuesday that the US Department of Agriculture (USDA) has issued a 'Finding of No Significant Impact' (FONSI) on the environmental assessment report for its planned Bayou Fuels biorefinery in Natchez, Mississippi.The AIM-traded firm said that, with the FONSI process completed, it would now focus on the next steps in the project's development, including securing the state-level permits that would be required to construct and operate the biorefinery.It said the 160-page environmental assessment report detailed the impact of the proposed facility across 15 potential aspects, including land use, water resources, air quality, wildlife, visual impact, noise, transport, and public and occupational health.In each case, it reportedly concluded the plant would have "none", "none to minor", or "minor" impacts during construction and operation.The FONSI was issued as part of Velocys' ongoing development of a 100-acre site in Natchez that the company secured in October last year.Velocys said the site would be home to a "pioneering" biorefinery that would use its innovative technology to produce low-carbon transportation fuels from the wood wastes of timber operations and tree plantations.The plant was expected to convert locally-sourced woody biomass waste into enough renewable fuel to meet the demands of running around 40,000 diesel and gasoline trucks.No opposing or negative comments were filed as part of the USDA's public consultation process, Velocys claimed."This is a significant step in the permitting of the Bayou Fuels biorefinery as well as an important milestone for the overall development of the project," said Velocys chief executive officer David Pummell."The environmental assessment provides independent confirmation that the project will not give rise to any significant environmental impacts and reflects our commitment to responsible and safe project development."