(Alliance News) - Velocys PLC said on Friday that it welcomes the UK government's consultation paper supporting sustainable aviation fuel.
The Oxford, England-based sustainable fuels technology company said the paper, which contains proposals aimed at supporting and financing the development of the sustainable aviation fuel industry, could aid its Altalto waste-to-jet fuel plant in North East Lincolnshire, UK.
The company's Altalto project was awarded GBP27 million back in December from the Department for Transport's advance fuel fund to support the final engineering phase required before construction commences.
The biorefinery, which is set to begin commercial operation in 2028, will be one of the firs commercial scale waste-to-jet fuel facilities in the UK. Velocys said it will convert over half a million tonnes per day of solid waste into 20 million gallons per year of sustainable fuel, saving around 300,000 tonnes of carbon dioxide yearly.
Chief Executive Officer Henrik Wareborn said: "This level of government support is critical, so that industry and policy can work in parallel and at speed to reduce emissions. There is still a need for a clear mechanism to ensure price stability for SAF, but the proposed mandate is an important step in the right direction.
"Today's news further underpins the investment case for our Altalto reference project in Immingham. The project will put the UK firmly at the forefront of the global move to decarbonise the aviation sector," he added.
Velocys shares were up 10% at 3.60 pence on Friday afternoon.
By Sabrina Penty; Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
