JDA extension with British Airways and Shell signed

12 May 2020

Support for the continued technical and commercial development of the Altalto Immingham project.

Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that it has secured a further £1m funding for the Altalto waste-to-fuels project from British Airways PLC and Shell International Petroleum Company Limited (“Shell”). This £1m will be payable before 30th June 2020.

The proposed Altalto Immingham plant is to convert hundreds of thousands of tonnes per year of residual waste into sustainable fuels, mainly aviation fuel. The project is being executed under a Joint Development Agreement (“JDA”) between British Airways, Shell, and Velocys. This JDA has now been extended as planned in order to support the continued technical and commercial development of the project.

British Airways and Shell have each now been granted an option to take a one-third share in the equity capital of Altalto Limited (a subsidiary of the Company) at a strike price of £1, as a pre-cursor to a full Shareholders’ Agreement for Altalto Limited in due course.

Henrik Wareborn, Velocys CEO, said:
“We are very pleased to have the continued support of British Airways and Shell as we move forward together with the Altalto project. Their commitment, during these uncertain times for the global economy, underlines the importance of this project for the aviation and fuels industries as we strive together to achieve net zero carbon emissions.”

For further information, please contact:

Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head of Communications & Sustainability
+44 1865 800821

Numis Securities (Nomad and joint broker)
Stuart Skinner
Emily Morris
Alamgir Ahmed
+44 20 7260 1000

Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
James Asensio
+44 20 7523 8000

Radnor Capital (Investor relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830

Field Consulting (PR)
Robert Jeffery
+44 20 7096 7730

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

Notes to Editors

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 municipal solid waste and waste woody biomass.

Velocys is currently developing two reference projects: one in Natchez, Mississippi, USA (incorporating Carbon Capture, Utilisation and Storage) and one in Immingham, UK, to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport. Originally a spin-out from Oxford University, in 2008 the company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Velocys is headquartered in Oxford in the United Kingdom.

Press contact

The press office welcomes the media to contact Velocys for further information, commentary and imagery.