LONDON (Alliance News) - Velocys PLC on Monday attributed a recent share price climb to the progress of its Bayou Fuels biorefinery project in Mississippi and to media analysis showing the demand for renewable fuels.
Velocys shares were up 26% to 4.80 pence on Monday.
The Bayou Fuels refinery will create jet fuel and diesel from forest by-products previously used for paper and pulp production.
Velocys said it is in discussions with a shortlist of investors regarding the development cost funding. It also noted the growing demand for renewable fuels.
"Recent media analysis continues to highlight the growing global demand for the high-quality renewable fuels that we can make, and in particular there is increasing demand from airlines and existing jet fuel producers," said Velocys.
On September 10, Velocys shares had dropped 13% after Bayou Fuels operator ENVIA suspended operations following a leak at the plant back in May. Due to this suspension in operations, the company's months cash burn rate has been reduced by approximately GBP500,000.
As at September 30, Velocys's cash resources stood above GBP10 million.
"The board is confident in the future of the company, and we look forward to updating the market with news on numerous fronts over the coming weeks and months," Velocys said.