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Velocys plc entered into a contract with a European renewable fuels developer to provide initial engineering services, with the revenue for this stage stated as de minimis. The company also agreed with British Airways (BA) to extend both the UK Altalto project Joint Development Agreement and the option for BA to acquire 50% of Altalto Ltd. This extension is for one year, until 31 March 2023, following the original option signed on 12 May 2020 and an initial extension on 30 March 2021.
| Date | 19 Apr 2022 |
| Time | 07:00:11 |
| Category | Corporate updates |
| ID | 5570I |
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:
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Velocys Henrik Wareborn, CEO Andrew Morris, CFO Lak Siriwardene, Director of Communications |
+44 1865 800821 |
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Panmure Gordon (UK) Limited (Nomad and Joint Broker) Hugh Rich (Corporate Broking) Emma Earl (Corporate Finance) John Prior (Corporate Finance) |
+44 20 7886 2500 |
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Shore Capital Stockbrokers Limited (Joint Broker) Henry Willcocks (Corporate Broking) Toby Gibbs (Corporate Advisory) James Thomas (Corporate Advisory) |
+44 20 7408 4090 |
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Radnor Capital (Investor Relations) Joshua Cryer Iain Daly |
+44 20 3897 1830 |
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Buchanan (Financial PR) Helen Tarbet Simon Compton |
+44 20 7466 5000 |
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.