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Exercise of option over Altalto project site

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Sustainable fuels firm Velocys announced it has exercised an option agreement to acquire Rula Developments (Immingham) Limited with an initial part-payment of £2.5 million (€3 million).
Rula owns the site of the proposed Altalto project, near Immingham in North East Lincolnshire, UK, which is being jointly developed by British Airways and Velocys.
Pursuant to the agreement, the total consideration to acquire the site is being satisfied by a £2.5 million (€3 million). part-payment, funded through an inter-company loan from Velocys to Altalto.
A further deferred consideration amount of up to £8.5 million (€10 million). is payable by 30 September 2022.
As previously announced, Velocys is discussing the onward purchase of Rula (and subsequent grant back to Altalto of a future option to purchase Rula within three years) with a third party.
Detailed engineering for the Altalto project is expected to commence in 2023. Financial close is expected in 2024, with construction of the plant being targeted to commence in 2024 and to be completed by mid-2026, following which commissioning and start-up will commence, with full scale commercial operation expected in 2027.