£27m award for Altalto Immingham SAF project
This will help fund for the Altalto Immingham sustainable aviation fuel (SAF) project.
The purpose of this project between Velocys and British Airways is to deliver a commercial waste-to-SAF plant in Immingham, UK.
The grant will allow Altalto Immingham to deliver the Front-End Engineering Design (FEED) stage of the project.
The grant funding will be distributed over the grant period from December to March 2025 and is conditional upon receipt of private sector matched funding.
Altalto Immingham has obtained letters of intent from a number of existing and new potential partners for the private-sector matched funding requirement with the first tranche of private funding due to be in place by next April.
Velocys’ cash contribution into the Altalto Immingham project over the two years from April is not expected to exceed £8 million (€9.3 million), and this sum may be reduced by bringing in additional investors into the project.
The grant funding will be used for the completion of the project FEED, which will incorporate the technology packages of the licensors (including Velocys) and develop the basis for the Engineering, Procurement and Construction contract. In parallel, the commercial agreements required to support the plant will be put in place.
Velocys has previously received grants for the Altalto Immingham project of £1.7 million from the DfT’s Green Fuels, Green Skies competition and a series of grants totaling £934,000 from the Future Fuels for Flight and Freight competition, the predecessor to Green Fuels, Green Skies.
Henrik Wareborn, CEO, said: “We are extremely pleased the UK Government has awarded Velocys this important grant which will deliver the FEED stage for our Altalto Immingham reference project accelerating the commercial deployment of Velocys’ technology and delivering cashflow.
“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.”