REG - Velocys PLC - Further business update

VelocysAnnouncement

19/04/2022 07:00

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RNS Number : 5570I  Velocys PLC  19 April 2022

19 April 2022

Velocys plc

("Velocys" or the "Company")

Further business update

 

 

Velocys plc (AIM: VLS), the sustainable fuels technology company, is pleased
to announce, further to the business update on 4 April 2022, that it has
entered into a contract with a European renewable fuels developer to provide
initial engineering services to a project, which is in the planning stages.
Whilst the revenue for this initial stage of the project is de minimis (and
project progression to material revenues to be determined), the agreement
broadens the Company's customer base and demonstrates the ability to progress
its pipeline of potential global customers towards commercial contracts. This
is also in line with the aims of the Company's business development function,
headed by Andy Bensley.

 

The Company has also agreed with British Airways ("BA") to extend both the UK
Altalto project Joint Development Agreement and the Option Agreement for BA to
acquire 50% of Altalto Ltd by one year to 31 March 2023. The original option
was signed on 12 May 2020 and initially extended on 30 March 2021.

 

Velocys offers its customers a technology solution enabling commercial scale
production of sustainable synthetic fuels from a variety of waste materials,
such as municipal, commercial and forestry residue. Sustainable aviation fuel,
SAF, is the only commercially available alternative to fossil aviation fuels.

 

The importance of sustainable synthetic fuels from bio-based feedstocks was
also recently highlighted by President Biden, as part of the US aviation
decarbonisation agenda.

 

The Company's customer pipeline is growing with increased demand for the
Velocys technology to ramp up the commercial scale production of sustainable
synthetic fuels to accelerate the global clean energy transition, and to
strengthen host country fuel independence.

 

 

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For further information, please contact:

 Velocys                                               +44 1865 800821

 Henrik Wareborn, CEO

 Andrew Morris, 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

 

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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