REG - Velocys PLC - £2.5m UK Government grant for new e-fuels project

VelocysAnnouncement

12/12/2022 07:16

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RNS Number : 3009J  Velocys PLC  12 December 2022

 

12 December 2022

News Release

 

Velocys plc

("the Company")

Award of £2.5m grant for new e-fuels project

 

Awarded by the UK Government's Advanced Fuels Fund

 

 

 

Velocys plc (VLS.L), the sustainable fuels technology company, announces that
in addition to the £27m grant from the UK Department for Transport's ("DfT")
Advanced Fuels Fund for the Altalto waste-to-SAF project, announced separately
today, it has also been awarded a grant of £2.5 million from the same fund,
to contribute its technology to an e-fuels project in the UK in collaboration
with a number of new and existing partners ("E-Fuels Project").

 

The Advanced Fuels Fund provides grants to support the development of
commercial-scale SAF plants and has a specific total allocation of £22
million for the development of e-fuels projects. These are fuels produced
using renewable (decarbonised) electricity rather than vegetable oils or
waste.

 

The £2.5 million grant awarded to Velocys under this e-fuels allocation will
be used in conjunction with the E-Fuels Project's partners to conduct
feasibility, technical validation, site selection and pre-FEED engineering for
such a project, to make SAF from carbon dioxide and hydrogen, in the UK.

 

The E-Fuels Project, to be known as "e-Alto", will be managed by Velocys,
partners include Clariant Catalysts ("Clariant"), Technip Energies ("T.EN")
and British Airways.

 

The key objective of the Advanced Fuels Fund is to kick-start the UK advanced
fuels sector with the commercial deployment of innovative fuel production
technologies that are capable of significantly reducing UK aviation carbon
dioxide emissions.

 

Henrik Wareborn, CEO, said:

 

"We are very pleased to have been awarded this grant as it reflects the
capability of the Velocys technology use of different feedstocks, ability to
attract world class partners, and access to a new project portfolio. Our
IP-protected technology enables the production of synthetic liquid fuels such
as SAF for the airline industry, from renewable power and CO2, as well as from
sustainable waste and biomass. This award also shows strong commitment from
the UK Government to accelerate the Department for Transport's Jet Zero
strategy for achieving net zero aviation by 2050."

 

 

 

 

 

For further information, please contact:

 Velocys                                               +44 1865 800821

 Henrik Wareborn, CEO

 Philip Sanderson, CFO

 Lak Siriwardene, Director of Communications

 Panmure Gordon (UK) Limited (Nomad and Joint Broker)  +44 20 7886 2500

 Hugh Rich (Corporate Broking)

 Emma Earl (Corporate Finance)

 John Prior (Corporate Finance)

 Shore Capital Stockbrokers Limited (Joint Broker)     +44 20 7408 4090

 Henry Willcocks (Corporate Broking)

 Toby Gibbs (Corporate Advisory)

 James Thomas (Corporate Advisory)

 Radnor Capital (Investor Relations)                   +44 20 3897 1830

 Joshua Cryer

 Iain Daly

 Buchanan (Financial PR)                               +44 20 7466 5000

 Helen Tarbet

 Simon Compton

 

 

--Ends-

 

Notes to Editors

 

Velocys is an LSE-listed, international sustainable fuels technology company,
traded on the AIM, providing customers with a technology solution to enable
the production of negative Carbon Intensity synthetic, drop-in fuels from a
variety of waste materials. Synthetic fuel is the only commercially available,
permanent alternative to fossil aviation fuels. The Velocys technology is
IP-protected in all major jurisdictions.

 

Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to
accelerate the adoption and standardise the Velocys proprietary Fischer
Tropsch (FT) technology with an integrated end to end solution, including
renewable power and carbon sequestration.

 

Velocys is enabling commercial scale synthetic fuel production in response to
the clean energy transition, with significant additional positive air quality
impacts.

www.velocys.com (http://www.velocys.com)

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