Velocys and British Airways have agreed a one-year extension to the current option agreement for the Altalto project in Immingham - which is aiming to develop a new facility for the conversion of waste into aviation fuel.
Exercising the option would give both parties equal equity ownership of Altalto Ltd and the right to appoint a director. The new agreement runs until 31 March 2022.
Velocys also welcomed the government's launch of a new £15 million (€17.6 million) Green Fuels, Green Skies' grant funding competition to support the production of SAF and said it intended to apply for a grant on behalf of the project.
Henrik Wareborn, chief executive at Velocys, said: "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.
"SAF remains critical to the decarbonisation 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 refuelling 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.
Sean Doyle, CEO of British Airways, said: “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 decarbonising 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 decarbonisation and accelerate the realisation of this vision.”
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