LONDON (Alliance News) - Renewable fuels company Velocys PLC said Friday it has received the first USD6 million to start manufacturing Fisher-Tropsch reactors at Red Rock Biofuels LLC Lakeview's biorefinery.
Red Rock's Lakeview project is set to deliver USD15 million revenue for Velocys during construction and early operation and a further USD30 million throughout the biorefinery's operative life.
The biorefinery, which will incorporate Velocys's technology, will produce renewable diesel ad jet fuel. Red Brick has already contracted the 100 percent of the jet fluid to several airlines.
Velocys Chief Executive Officer, David Pummell, said: "Our technology positions us at the forefront of this huge market opportunity. Red Rock's success is a significant milestone for the sector, one that further demonstrates the market's appetite for renewable transportation fuels.
"The successful funding of this project is a validation of the commercial viability and bankability of Velocys' technology. The licensing of our technology to RRB is complementary to our strategy to develop our own biorefineries, the first of which will be located in Natchez, Mississippi."
Velocys shares were trading up by 13.3% at 15.30 pence on Friday.