The company behind the development of a green jet fuel refinery on the South Humber Bank has hit a key funding milestone.
Velocys has completed the work required to draw down the first tranche of a £27 million grant awarded from the Department for Transport’s Advanced Fuel Funds.
It comes as private funding is also pumped into he Altalto Immingham project following the announcement late last year.
The £7 million will allow for the completion of front-end engineering and design stage. Should a positive final investment decision follow, construction of the consented £350 million Stallingborough plant is anticipated to start in 2025, with full commercial operation in 2028.
The company said that since the award of the grant, the project has entered into a number of technology licence and engineering services agreements with project technology licensors, and the FEED contract with Bechtel Ltd, utilising the first tranche of grant funds provided by the DfT.
Further draw downs are dependent on demonstration of further project milestones being reached, with matched funding requirements to be met over the two years to April 2025.
Earlier this year Velocys announced the appointment of a leading global investment bank to advise on the financing and to assist in obtaining the matched funding from private sector investors. In a statement released today it said it is “on track to be in place during quarter four 2023”.
Backed by British Airways, the Hobson Way site sits at the heart of North East Lincolnshire’s South Humber Industrial Investment Programme, and was granted planning permission in May 2020.
Last year saw Phillips 66 Humber Refinery begin SAF production, with a commercial supply deal entered into with BA in late 2021. The British flag carrier went on to highlight the huge opportunity for the Humber.
King Charles III during a visit to the Whittle Laboratory in Cambridge to break ground on the new laboratory, meet with academics, aviation leaders and tour the facility.
The AIM-listed company’s update came after King Charles made his first post-Coronation engagement to break ground on a new £58 million Whittle Laboratory at University of Cambridge. It will be dedicted to developing cutting-edge technologies to reach net zero aviation by 2050. He had previously visited British Airways in the company of Velocys to learn about the fuel developments too.
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