Velocys plc, a UK developer of advanced biofuels gas-to-liquids (GTL) technology has announced that it has jointly agreed to extend the current option agreement with British Airways (BA) for the Altalto project to March 31, 2022."I thank British Airways for their renewed commitment to our joint efforts to advance the Altalto waste-to-SAF project. Our announcement today reflects the strength of our partnership and commitment to the project," said Henrik Wareborn, CEO of Velocys.
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According to a statement, the exercise of the option would give both parties equal equity ownership (50/50) of Altalto Ltd and the right to appoint a Director. Details of the original option agreement were previously announced on May 12, 2020.
The Company also welcomes the UK Government March 16, 2021 announcement of the launch of a new GBP15 million (≈ EUR 17.5 million) ‘Green Fuels, Green Skies’ grant funding competition. This funding is intended to support the production of Sustainable Aviation Fuel (SAF).
Altalto Immingham Ltd intends to apply for a grant in this competition, on behalf of Velocys and British Airways. The results of the competition are expected to be announced by the Department for Transport (DfT) on July 31, 2021.
Velocys expects the project will be in a position to launch its front-end engineering design (FEED) later in 2021 subject to confirmed UK Government policy support and the addition of new investment partners in the project.
SAF remains critical to the decarbonization of aviation; it is applicable to all flights including long-haul and can be used immediately with no need for modifications to aircraft fleets or refueling infrastructure. Velocys has the technology to enable the production of SAF from wastes, avoiding landfill or incineration, and our technology can be coupled with Carbon Capture and Storage (CCS) to achieve net-zero fuels. Policy support remains critical to the establishment of UK SAF facilities, but with the right support, we can enable a clean future for aviation. Whilst there is no guarantee that the Altalto project’s application to the Green Fuels, Green Skies competition will be successful, we are delighted to see this new Government initiative to support the production of SAF, said Henrik Wareborn.
In addition, on 25 March 2021 the Secretary of State for Transport, the Rt Hon Grant Shapps MP, opened a Consultation into amending the Renewable Transport Fuel Obligation (RTFO) to increase the carbon savings it achieves.
Velocys welcomes the launch of this process, fully supports its objectives, and will be actively participating in the Consultation. The Secretary of State notes that expanding the RTFO to include recycled carbon fuels would “transform the commercial viability” of waste-to-fuel technology and support pioneering projects in the UK looking to develop sustainable aviation fuel from household waste.
Despite the crisis in global aviation, it is vital for our future that we continue to address climate change and we remain focused on playing our part to reduce the impact we have on the planet. For the last 100 years we have connected Britain with the world and the world with Britain, and to ensure our success for the next 100, we must do this sustainably. Progressing the development and commercial deployment of Sustainable Aviation Fuel is crucial to decarbonizing the aviation industry and to meet our commitment to carbon net-zero by 2050. The UK has the experience and resources needed to become a global leader in the deployment of such sustainable aviation fuel production facilities, and we need Government support to drive decarbonization and accelerate the realization of this vision, said Sean Doyle, CEO of British Airways.