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

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 Henrik Wareborn, CEO Philip Sanderson, CFO Lak Siriwardene, Director of Communications	[phone]
Panmure Gordon (UK) Limited (Nomad and Joint Broker) Hugh Rich (Corporate Broking) Emma Earl (Corporate Finance) John Prior (Corporate Finance)	[phone]
Shore Capital Stockbrokers Limited (Joint Broker) Henry Willcocks (Corporate Broking) Toby Gibbs (Corporate Advisory) James Thomas (Corporate Advisory)	[phone]
Radnor Capital (Investor Relations) Joshua Cryer Iain Daly	[phone]
Buchanan (Financial PR) Helen Tarbet Simon Compton	[phone]

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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

 

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