Velocys secures additional funding from BA and Shell for Altalto Immingham
UK-headed Velocys plc, a developer of advanced biofuels gas-to-liquids (GTL) technology has announced that it has secured a further GBP1 million (≈ EUR 1.1 million) in funding for the Altalto Immingham waste-to-fuels project from British Airways PLC and Shell International Petroleum Company Ltd (Shell) payable before June 30, 2020.
The proposed Altalto Immingham plant on the UK’s east coast 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 Ltd (a subsidiary of the Company) at a strike price of GBP1 (≈EUR 1.1), as a precursor to a full Shareholders’ Agreement for Altalto Ltd in due course.
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, said Henrik Wareborn, CEO, Velocys.