Velocys secures grant of up to £2.4M for Altalto project

Velocys (LON:VLS), the sustainable fuels technology company, has confirmed that it has secured a grant from the UK Department for Transport (DfT) via the Green Fuels, Green Skies competition.

The grant award is up to a maximum of £2.4M, of which £1.2M is subject to progress by the DfT in developing policy support for Sustainable Aviation Fuels (SAF).

The Altalto project is a collaboration between Velocys and British Airways; the proposed plant will convert hundreds of thousands of tonnes per year of residual waste into sustainable fuels, mainly aviation fuel.

Planning consent was granted in 2020; the project is ready to proceed to the final stages of engineering prior to construction, subject to the policy progress mentioned above and to third party project funding.

Velocys has previously received grants totalling £934,000 from the Future Fuels for Flight and Freight (F4C) competition, the predecessor to Green Fuels, Green Skies.

Henrik Wareborn, Velocys CEO, said: “We are very pleased to have this enhanced level of support from the Department for Transport for the Altalto project.”

“The momentum for Sustainable Aviation Fuel (SAF) in the UK and around the world is growing, demonstrated here by the recent consultations on the path to net zero aviation and on a SAF mandate. This grant demonstrates that the Altalto project is a key part of the strategy to accelerate a SAF industry in the UK.”

Velocys is an international UK-based sustainable fuels technology company. Velocys designed, developed and now licenses proprietary Fischer-Tropsch technology for the generation of clean, low carbon, synthetic drop-in aviation and road transport fuel from residual woody biomass and municipal solid waste.

The Velocys technology can also enable the production of zero carbon fuels for the airline industry from renewable power and CO2.

The Velocys share price is up by 4.66% during the morning session on Wednesday.