In partnership with British Airways, Velocys is developing the Immingham SAF facility that could convert up to 500,000 tonnes of commercial solid waste into fuel for planes and cars each year (see letsrecycle.com story).
The company’s subsidiary, Altalto, wholly-owned by Velocys, was awarded £27 million in December on the condition that this was matched by private sector funding and a timeline for front-end engineering design (FEED) stage of the project being set.
Velocys said it has secured private sector funding and has now received the £7 million which will allow the FEED stage to be complete.
Following the completion of FEED and a successful final investment decision, construction will commence in 2025 with full commercial operation expected in 2028.
Funding
Velocys explained that since the award of the DfT grant in December, the Altalto Immingham Project has entered into “a number of technology license and engineering services agreements” with project technology licensors. The company signed a FEED contract with Bechtel Limited, utilising the first tranche of grant funds provided by the DfT.
Pursuant to the terms of the grant, further draw down of the £27 million grant is subject to demonstration of project milestones with matched funding requirements to be met over the two years to 31 March 2025.
In March 2023, the company announced the appointment of a leading global investment bank to advise on the financing of Velocys’ reference projects and to assist in obtaining the matched funding from private sector investors, which is on track to be in place during Q4 2023.
The company explained: “As previously announced, Velocys’ cash contribution to the Altalto Project over two years from April 2023, including its contribution to the first tranche of private funding of £1 million, is not expected to exceed £8 million, with Velocys intending to recover any funding it provides at the earlier development stages.”
Subscribe for free