REG - Velocys PLC - Altalto Immingham Project Update

VelocysAnnouncement

10/05/2023 07:00

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RNS Number : 8457Y  Velocys PLC  10 May 2023

10 May 2023

News Release

 

Velocys plc

("the Company")

 

 

Altalto Immingham Project Update

 

Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to
announce that further to the award of the grant from the UK Government's
Department for Transport ("DfT") Advanced Fuel Funds of up to £27 million for
the Altalto Immingham Sustainable Aviation Fuel ("SAF") Project, announced on
12 December 2022, Altalto Ltd* has completed the work necessary to claim the
first tranche (£7 million) of the grant up to 31 March 2023. In addition, as
planned, the project has obtained the first tranche of private funding for the
period from 1 April 2023 from its existing private sector participants.

 

The Altalto project's aim is to deliver a commercial waste-to-SAF plant in
Immingham, UK. The DfT grant and matched funding will enable Altalto to
complete the Front-End Engineering Design ("FEED") stage of the project.
Following the completion of FEED and a successful final investment decision,
construction will commence in 2025 with full commercial operation expected in
2028.

 

Since the award of the DfT grant in December, the Altalto Immingham Project
has entered into a number of technology license and engineering services
agreements with project technology licensors and the FEED contract with
Bechtel Limited, utilising the first tranche of grant funds provided by the
DfT. Pursuant to the terms of the grant, further draw down of the grant is
subject to demonstration of project milestones with matched funding
requirements to be met over the two years to 31 March 2025.

 

In March 2023, the Company announced the appointment of a leading global
investment bank to advise on the financing of Velocys' Reference Projects and
to assist in obtaining the matched funding from private sector investors,
which is on track to be in place during Q4 2023.

 

As previously announced, Velocys' cash contribution to the Altalto Project
over two years from April 2023, including its contribution to the first
tranche of private funding of £1 million, is not expected to exceed £8
million, with Velocys intending to recover any funding it provides at the
earlier development stages (as from 1 April 2023 onwards) following receipt of
third party project investment.

 

 

* a wholly owned subsidiary of the Company.

 

This announcement contains inside information for the purposes of
the UK Market Abuse Regulation.

 

For further information, please contact:

 

 Velocys                                               +44 1865 800821

 Henrik Wareborn, CEO

 Philip Sanderson, CFO

 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 Immingham, 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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