Oxford's Velocys awarded two UK Government grants totalling £29.5m

By Stephen Emerson

13 December 2022

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Velocys has announced that it had been awarded two grants from the UK government's Advanced Fuels Fund.

The Oxford, England-based fuel technology company said it had been awarded a £27m grant from the UK Department for Transport's Advanced Fuels Fund for the Altalto Immingham Sustainable Aviation Fuel project (pictured above).

It has also been awarded a grant of £2.5 million from the same fund, to contribute its technology to an e-fuels project in the UK in collaboration with a number of new and existing partners.

The Altalto Immingham project, being developed jointly by Velocys and British Airways PLC, is intended to deliver a waste-to-SAF plant in Immingham, UK. The company said the grant will the completion of the front-end engineering design stage of the project.

The grant will be distributed between December 2022 and March 2025, conditional upon the receipt of private sector matched funding. The company said the Altalto Immingham project had received letters intent from a number of existing and new partners for matched funding requirement.

The first tranche of private funding is set to be in place by April 2023.

Velocys' cash contribution to the project over the next two years from April 2023 will be no more than £8 million, the company said, adding that this figure could be reduced by bringing in additional investors.

Chief Executive Officer Henrik Wareborn said: "We welcome this clear commitment from Government to having commercial SAF plants built in the UK. We are delighted that a number of large commercial companies have indicated their support for the project through indications of matched funding contribution and the provision of services to progress the project."

Velocys also announced that it had received an additional GBP2.5 million from the same fund to contribute its technology to an e-fuels project, known as "e-Alto" in collaboration with multiple new and existing partners, including Clariant Catalysts and Technip Energies NV.

Picture : Velocys

By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.