JDA extension with British Airways and Shell signed
12 May 2020
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.”