Velocys profit boost confirms a strong 12 months for firm

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UK-based Velocys has announced profits of €3.3 million (€3.85 million) covering the first half of 2021.
This positive news follows on from British Airways’ decision to extend the Altalto option agreement and committing itself to domestic UK SAF production.
Altalto was also awarded a grant under the Green Fuels Green Skies scheme of £2.4 million (€2.8 million) in August by the UK Government to cover 100% of the costs to advance this critical waste conversion facility for the next seven months.
On the SAF side, there has been a collaboration agreement signed with Toyo Engineering in Japan to start development of their commercial scale biomass-to-jet fuel project along with other renewable opportunities.
Henrik Wareborn, CEO of Velocys, said: “Our interim results demonstrate that Velocys has achieved an important milestone, recognising £8.2 million of revenue and £3.3 million gross profit in HY2021 from our first major commercial customer contract.
“The downwards trend in our operating loss continued, declining to £2 million in HY2021 from £2.6 million in HY2020 (£5.2 million in HY2019 and £11 million in HY2018).
“This shows that the company is controlling its spending well whilst also delivering to our customers and progressing our two reference projects towards funding for their FEED stages and then onto financial close.
“At the same time, I am pleased with the safe and efficient operational performance of Velocys despite the challenges of COVID-19, and excited about the sustainable fuels market dynamics and the business development opportunities available to us for the short, medium and long term.”