REG - Velocys PLC - Exercise of Option over Altalto Project Site

VelocysAnnouncement

17/12/2021 08:05

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RNS Number : 9647V  Velocys PLC  17 December 2021

Velocys plc

("Velocys" or the "Company")

Exercise of Option over Altalto Project Site

Velocys plc (AIM: VLS), the sustainable fuels technology company, today
announces that further to the announcement of 25 November 2021 and following
completion of the fundraising, Altalto Immingham Ltd ("Altalto") (a subsidiary
of Velocys) has exercised an option agreement to acquire Rula Developments
(Immingham) Limited ("RDIL") with an initial part-payment of £2.5 million.
RDIL owns the site of the proposed Altalto project, near Immingham in North
East Lincolnshire, which is being jointly developed by British Airways PLC
("BA") and Velocys.

 

Pursuant to the agreement, the total consideration to acquire the site is
being satisfied by a £2.5 million part-payment, funded through an
inter-company loan from Velocys to Altalto. A further deferred consideration
amount of up to £8.5 million is payable by 30 September 2022. As previously
announced, Velocys is discussing the onward purchase of RDIL (and subsequent
grant back to Altalto of a future option to purchase RDIL within 3 years) with
a third party with the intention that the purchase price for RDIL paid by the
third party will cover the remaining consideration payable by Altalto in 2022.

 

Detailed engineering for the Altalto project is expected to commence in 2023.
Financial close is expected in 2024, with construction of the plant being
targeted to commence in 2024 and to be completed by mid-2026, following which
commissioning and start-up will commence, with full scale commercial operation
expected in 2027.

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation 596/2014/EU (MAR).

 

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Enquiries:

 Velocys                                                            +44 1865 800821

 Henrik Wareborn, CEO

 Andrew Morris, CFO

 Lak Siriwardene, Director of Communications & Sustainability

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

 Emma Earl (Corporate Finance)

 John Prior (Corporate Finance)

 Hugh Rich (Corporate Broking)

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

 Henry Willcocks (Corporate Broking)

 Toby Gibbs (Corporate Advisory)

 James Thomas (Corporate Advisory)

 Liam Zabludowicz (Corporate Advisory)

 Buchanan (Financial PR)                                            +44 20 7466 5000

 Helen Tarbet

 Simon Compton

 Radnor Capital (Investor Relations)                                +44 20 3897 1830

 Joshua Cryer

 Iain Daly

 

 

Notes to Editors

 

Velocys is an LSE-listed, international sustainable fuels technology company,
traded on the AIM, providing clients with a technology solution to enable the
production of negative Carbon Intensity synthetic, drop-in fuels from a
variety of waste materials. SAF ('Sustainable Aviation Fuel') is the only
commercially available, permanent alternative to fossil aviation fuels.

The technology is IP-protected in all major jurisdictions.

Two reference projects in the US and UK (Bayou Fuels and Altalto) 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
SAF production in response to the clean energy transition.

Velocys technology pathway is enabling the next generation of low carbon
sustainable fuels with significant additional positive air quality impacts.

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

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