LONDON (Alliance News) - Renewable fuels company Velocys PLC said Monday it secured GBP4.9 million in funding to deliver the next development phase of its waste-to-sustainable jet fuel project in the UK.
Velocys shares were trading up 7.0% at 13.94 as a response to the news.
As part of the funding package, the company said it secured a GBP434,000 grant from the UK Department for Transport under the future fuels for flight and freight competition.
The project is being developed with the financial and technical support of Royal Dutch Shell PLC and British Airways. The remaining GBP4.5 million were committed by the industry partners and by the company itself, Velocys said.
The company said it completed the first feasibility stage and is now looking to start the initial front end engineering and design study.
The team is looking to develop a plant in the UK which will use post-recycles waste, destined for landfill or incineration, and convert it into clean-burning, sustainable fuel, the company said.
"The jet fuel produced, to be used by British Airways, is expected to deliver over 70% greenhouse gas reduction and 90% reduction in particulate matter emissions compared with conventional jet fuel," Velocys added.
"This would contribute to both carbon emissions reductions and local air quality improvements around major airports."