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Velocys secures waste-to-jet fuel project funding
Velocys has secured £4.9m of funding from the Department for Transport and various corporate investors to help the renewable fuels company through the next development phase of its waste-to-jet fuel project.
The funding package, granted as part of the Department for Transport's Future Fuels for Flight and Freight competition, together with ongoing policy support provided by the Renewable Transport Fuel Obligation, will help Velocys' waste-to-fuels project bring jobs and clean growth to the UK.
Velocys has already completed the initial feasibility stage of the project and will soon undertake a detailed pre-front end engineering and design study and site permitting activities, fully funded by a combination of the DfT grant and £4.5m committed by its industry partners, Shell and British Airways.
In January the company raised £18.4m before expenses to fund initial development costs for the waste-to-fuel project and the development of a biorefinery in Mississippi, USA.
David Pummell, chief executive of Velocys, said on Monday: "Today the UK has taken another step forward towards becoming a world leader in low carbon aviation. Government funding, recent policy changes and successful completion of the feasibility study have enabled Velocys and its partners to move forward to the next phase in developing the UK's first waste-to-renewable jet fuel plant."
As of 0930 BST, Velocys shares had collected 5.28% to 13.71p.