(Alliance News) - Fuels technology firm Velocys PLC said Tuesday in has received GBP1 million in funding for the Altalto waste-to-fuels project from British Airways PLC and Shell International Petroleum Co Ltd.
Shares in Velocys closed 43% higher at 3.60 pence on Tuesday in London.
British Airways is part of International Consolidated Airlines Group PLC, while Shell International Petroleum is part of Royal Dutch Shell PLC.
The proposed Altalto Immingham plant is for the conversion of hundreds of thousands of tonnes per year of residual waste into sustainable fuel, mainly aviation fuel.
The project is being implemented under a joint development agreement between British Airways, Shell and Velocys.
British Airways and Shell have an option to take a one-third stake each in Velocys subsidiary Altalto Ltd for the strike price of GBP1, as a pre-cursor to a full shareholders' agreement for the business.
"We are very pleased to have the continued support of British Airways and Shell as we move forward together with the Altalto project. Their commitment, during these uncertain times for the global economy, underlines the importance of this project for the aviation and fuels industries as we strive together to achieve net zero carbon emissions," said Velocys Chief Executive Officer Henrik Wareborn.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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