Velocys plc (VLS.L) is pleased to announce that it has secured a purchase order and technical service agreements with Toyo Engineering Corporation (Toyo) for the use of Velocys technology in a publicly funded demonstration facility in Nagoya, Japan, as well as an advance deposit for the use of the Velocys technology by Toyo in a subsequent commercial plant.
Toyo has placed an order with Velocys, worth approximately $0.5 million (£0.4 million), to supply its Fischer-Tropsch (FT) technology, equipment and catalyst for a biomass-to-jet fuel demonstration facility currently under construction by a consortium of Japanese companies.
In addition, Velocys has agreed that it will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for a future potential commercial plant in Japan with an advance deposit of $4 million (£3.2 million). The deposit will be paid in a non-refundable tranche of $0.5 million (£0.4 million) and a further tranche which is potentially refundable and subject to milestones.
Henrik Wareborn, CEO of Velocys, said:
“I am delighted with this further evidence of the global demand for sustainable aviation fuels and for our technology, which has already been demonstrated at commercial scale. I am proud that Velocys technology has been chosen to be part of this publicly funded demonstration facility, which is an important step towards a commercial application in Japan. We appreciate the commitment of Toyo, and we look forward to working with them and their partners to complete the demonstration and to support the expected future commercial plant.”
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
James Asensio
+44 20 7523 8000
Camarco (Investor relations)
Billy Clegg
Tom Huddart
+44 20 3757 4983
Field Consulting (PR)
Robert Jeffery
+44 20 7096 7730
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Notes to editors
Velocys is a British sustainable fuels technology company. Originally a spin-out from Oxford University, in 2008 the company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Over 15 years Velocys has developed proprietary Fischer-Tropsch technology that enables the production of drop-in transport fuels from the embedded carbon-sources in a variety of waste materials. Having demonstrated its technology at commercial scale, Velocys is currently developing projects in Natchez, Mississippi, USA and Immingham, UK to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport.
Altalto Immingham Limited, a subsidiary of Velocys and a collaboration with project co-investors British Airways and Shell, has submitted a planning application to develop what is expected to be Europe’s first commercial scale household and commercial solid waste to sustainable fuels plant in North East Lincolnshire.
The site is near Immingham, close to the Humber Estuary. The plant would take over half a million tonnes each year of non-recyclable everyday waste otherwise destined for landfill or incineration, and convert it into cleaner burning sustainable aviation fuel and road fuel.
The technology, integrated by Velocys, enables a net 70% reduction in greenhouse gas emissions for each tonne of sustainable jet fuel that displaces a tonne of conventional fuel. The greenhouse gas reductions achieved from the plant’s annual output are equivalent to up to 40,000 standard size petrol engine cars.
The fuel also improves air quality, with up to 90% reduction in particulate matter (soot) from aircraft engine exhausts and almost 100% reduction in sulphur oxides; and the technology offers a lower emissions route to process UK waste than incineration or landfill.
The development is also anticipated to bring hundreds of millions of pounds of investment, hundreds of jobs during construction and approximately 130 permanent jobs into the region.
Domestically producing the fuel will have the added benefit of improving the UK’s fuel supply and resilience given the UK currently imports more than 70% of its jet fuel from abroad.
Henrik Wareborn, CEO at Velocys, said:
“Velocys has a solution to decarbonise aviation fuel by converting an unwanted feedstock – household and commercial solid waste – to create a highly valuable product: sustainable transport fuels.
“This will cut greenhouse gas emissions from aviation, as well as improving air quality and helping to tackle our waste problem. This is a vital step towards the ultimate goal of living in a net zero carbon world by the middle of the century.”
Alex Cruz, British Airways Chairman and CEO, said:
“The submission of the planning application marks a major milestone in this project and we are delighted with the progress being made. Sustainable fuels can be a game changer for aviation which will help power our aircraft for years to come. This development is an important step in the reduction of our carbon emissions and meeting the industry targets of carbon neutral growth from 2020, and a 50% in CO2 reduction by 2050 from 2005 levels. It also brings the UK another step closer to becoming a global leader in sustainable aviation fuels.”
Jonathon Counsell, Head of Sustainability at International Airlines Group, British Airways’ parent company, said:
“This is a fantastic step forward for the project. We strongly welcomed the inclusion of sustainable aviation fuels into the renewable transport fuels policy framework and call on Government to continue to provide support given the significant near-term opportunities offered by these fuels.
“Specifically, we strongly believe a dedicated Office for Sustainable Aviation Fuels (OSAF) will provide the essential cross-government co-ordination necessary to progress the development and commercial deployment of sustainable aviation fuel and would welcome Government support in setting this up at the earliest opportunity.”
ENDS
Altalto Immingham Limited is a subsidiary of Velocys and a collaboration with project co-investors British Airways and Shell.
Velocys is a British sustainable fuels technology company. Originally a spin-out from Oxford University, in 2008 the company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Over 15 years Velocys has developed proprietary Fischer-Tropsch technology that enables the production of drop-in transport fuels from the embedded carbon-sources in a variety of waste materials. Having demonstrated its technology at commercial scale, Velocys is currently developing projects in Natchez, Mississippi, USA and Immingham, UK to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport.
Velocys is leading the development of the Altalto Immingham project and has assembled all the technology components into a standardised integrated design. Velocys also supplies the central processing unit: micro-Channel Fischer-Tropsch reactors with the proprietary Velocys Actocat catalyst. This is the part of the process that turns a gas mixture of carbon and hydrogen into the liquid hydrocarbons required to create the sustainable fuels.
British Airways intends to purchase jet fuel produced at the plant for use in its aircraft. This is an important step in the reduction of the airline’s carbon emissions towards the industry targets of carbon neutral growth from 2020 and a 50% reduction by 2050 from 2005 levels.
Shell intends to purchase both jet fuel and road fuel from Altalto, which may then be blended and sold to Shell’s customers, helping to reduce their carbon footprint. Shell will also provide technical expertise, based on its long experience of gasification and Fischer-Tropsch conversion.
The process enables the production of aviation and road fuels with 70% less net greenhouse gas emissions compared to conventional fuel.
Subject to planning and funding decisions, we plan to begin construction in 2021 and to start producing commercial volumes of Sustainable Aviation Fuel in 2024.
For more information about the project, visit www.altalto.com or contact Robert Jeffery at Robert.Jeffery@fieldconsulting.co.uk or 07852 428 915.
Velocys plc (VLS.L), the renewable fuels technology company, is pleased to announce that it has secured £7 million (gross) by way of a Placing.
Highlights:
Henrik Wareborn, CEO of Velocys, said:
“I am delighted with the level of support Velocys has received from existing and new institutional investors. This complements the commitments by Shell and British Airways to co-fund the remaining pre-FEED project work to bring the Altalto Immingham biorefinery project to the same state of pre-FEED completion as our Bayou Fuels project in Mississippi. As a result we can provide strategic partners with two truly sustainable fuel projects, and a solution that can be deployed widely to decarbonise aviation and heavy goods transport.”
The Placing
The Company has proposed a fundraise of approximately £7 million, before expenses, by way of a conditional, non-pre-emptive placing of 233,333,335 Placing Shares at the Placing Price. The Placing has been arranged by Numis Securities Limited, Canaccord Genuity Group and Peat & Co and is not being underwritten.
The Placing is conditional (amongst other things) upon the passing of certain resolutions. A General Meeting is being convened for the purpose of considering the relevant resolutions at 10.30 a.m. on 31st July 2019 at the offices of Mayer Brown International LLP, 201 Bishopsgate, London, EC2M 3AF.
Detailed terms and conditions applicable to the Placing are provided in the appendix to this announcement.
– Ends –
Velocys is a sustainable fuels technology company. Originally a spin-out from Oxford University, in 2008 the Company acquired a US company based on complementary technology developed at the Pacific Northwest National Laboratory. Over 15 years Velocys has developed proprietary Fischer-Tropsch technology that enables the production of drop-in transport fuels from a variety of waste materials. Having demonstrated its technology at commercial scale, the Company is currently developing projects in Natchez, Mississippi, USA and Immingham, UK to produce fuels that significantly reduce both greenhouse gas emissions and key exhaust pollutants for aviation and road transport.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
James Asensio
+44 20 7523 8000
Camarco (Financial communications & PR)
Billy Clegg
Tom Huddart
+44 20 3757 4983
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) (“MAR”) prior to its release as part of this announcement. In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR. Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.
IMPORTANT NOTICES (Link to PDF)
At the Annual General Meeting held earlier today, all resolutions put to shareholders were duly passed on a show of hands.
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Velocys plc (VLS.L), the renewable fuels company, announces that, at its Annual General Meeting held earlier today, all resolutions put to shareholders were duly passed on a show of hands.
Full details of the resolutions passed are set out in the Notice of Meeting which is available on the Company’s website www.velocys.com.
The following remarks were made by Velocys Chairman, Dr Pierre Jungels and CEO, Henrik Wareborn at the AGM.
Chairman’s Introductory Remarks
Velocys is now an advanced biofuels company. This transition was completed thanks to the technical proof point reached upon completion of the commercial scale demonstration runs of our two Velocys Fischer-Tropsch (FT) reactors at ENVIA, together with the strong commercial progress at both the Immingham UK waste to jet fuel plant and the Natchez Mississippi biorefinery projects, significant fundraising in support of the above and an overall strengthening of the Executive team as well as the Board.
The ENVIA plant in Oklahoma has shown that Velocys’ micro-channel FT reactors and catalysts work well in a range of conditions, inside the operating envelope, and generate high quality renewable fuels with low carbon intensity evidenced by the award of D7 RIN credits last year.
Velocys will now leverage all the learnings and experience from running full cycle commercial operations at ENVIA into the two commercial scale biorefinery projects in Natchez and Immingham in collaboration with our financial and technology partners.
The demand for sustainable jet fuel could not be more obvious. Velocys is in a unique position to offer a de-risked, scalable and executable solution to convert solid waste feedstocks into sustainable jet fuel with a minimal carbon intensity both in the US and in the UK subject to continued shareholder and strategic partner support.
Management and Board
In November 2018, we were delighted to welcome Henrik Wareborn as Velocys’ new CEO and Executive Director. Henrik’s expertise includes capital markets advisory, commodities trading, fund raising and commodity finance from Goldman Sachs, BP Plc and Natixis SA. Henrik holds an MBA from INSEAD and a BA in economics from Stockholm School of Economics. The Board considers that his skill set and experience and his knowledge, background and approach, are exactly what is demanded as Velocys moves into the financing and commercialisation of both the project in Mississippi and the UK waste to jet fuel project in Immingham.
In addition, we are pleased that Andrew Morris, who had been a Non-Executive Director and Chairman of the Company’s Audit and Risk Committee since June 2017, accepted the position as Velocys’ full time Chief Financial Officer, remaining on the Board as an Executive Director. Andrew has considerable experience in the power and renewable energy, energy from waste and biofuels sectors, and has significant involvement in financing and business development for AIM companies, SMEs and private equity backed organisations. Andrew’s appointment as Velocys’ Chief Financial Officer has assisted the Board significantly in managing the Company’s finances.
We were also pleased to announce the appointment of two new independent Non-Executive Directors to the Board with effect 1 January 2019. Philip Holland and Darran Messem both have significant experience in industries, companies and projects with direct relevance to Velocys. The Board has already been able to benefit from their respective contributions in the relatively short time since their appointment.
CEO Introductory Remarks
Velocys in within reach to offer a tangible solution to support decarbonisation of air travel, a critical sector supporting the global economy with very stringent fuel criteria and few alternatives to hydrocarbon fuels. The aviation sector needs renewable fuels which meet the complex standards of fossil fuels for engine safety and performance reasons. I believe Velocys is well positioned to create significant shareholder value already in 2019 from our unique position at the cutting edge of fossil-free aviation.
I would like to thank all my colleagues at Velocys for their continued commitment and relentless efforts during the intensive phase of technology demonstration and project development during 2018.
I would also like to take this opportunity to thank Dr Pierre Jungels for his continued support to me and the team during the changes that were made to the senior management of the Company and the Board in the last quarter of 2018 as well as for his significant contribution to the Company over the last thirteen years.
| Resolutions | For / Discretion | Against | Total | Vote withheld* | ||
| Number | % | Number | % | |||
| 1. To receive, consider and adopt the annual accounts of the Company as at 31 December 2018 and the Directors’ and auditors’ reports thereon | 211,320,370 | 99.99 | 20,512 | 0.01 | 211,340,882 | 1,954 |
| 2. To re-elect Sandy Shaw | 211,320,370 | 99.99 | 22,466 | 0.01 | 211,342,836 | – |
| 3. To elect Henrik Wareborn | 211,318,395 | 99.99 | 22,466 | 0.01 | 211,340,861 | 1,975 |
| 4. To re-elect Pierre Jungels | 211,316,474 | 99.99 | 24,387 | 0.01 | 211,340,861 | 1,975 |
| 5. To re-elect Andrew Morris | 211,318,395 | 99.99 | 22,466 | 0.01 | 211,340,861 | 1,975 |
| 6. To elect Philip Holland | 211,338,907 | 99.99 | 1,954 | 0.01 | 211,340,861 | 1,975 |
| 7. To elect Darran Messem | 211,338,907 | 99.99 | 1,954 | 0.01 | 211,340,861 | 1,975 |
| 8. To re-appoint PricewaterhouseCoopers LLP as auditors to the Company | 211,320,370 | 99.99 | 22,466 | 0.01 | 211,342,836 | – |
| 9. To authorise the Directors to determine the auditors’ remuneration | 211,320,370 | 99.99 | 22,466 | 0.01 | 211,342,836 | – |
| 10. To authorise the Directors to allot equity securities pursuant to the articles of association of the Company | 211,300,700 | 99.98 | 42,136 | 0.02 | 211,342,836 | – |
| 11. To authorise the Directors to allot equity securities for cash disapplying pre-emption rights in the Company’s articles of association | 211,222,833 | 99.97 | 69,111 | 0.03 | 211,291,944 | 50,892 |
| 12. To authorise the Company to purchase its own shares | 211,275,679 | 99.97 | 67,157 | 0.03 | 211,342,836 | – |
* ‘Vote withheld’ is not a vote in law and is not counted in the calculation of the proportion of the votes ‘For’ and ‘Against’ a resolution.
– Ends –
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Ben Woodford
Tom Huddart
+44 20 3757 4983
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Velocys plc (VLS.L), the advanced biofuels company, is pleased to announce its final audited results for the year ended 31 December 2018.
Velocys reaches agreement with ENVIA and JV partner on rights transfer and payment.
_ _ _
Velocys Plc, (VLS.L) is a minority equity stakeholder of and the senior secured lender to ENVIA Energy, LLC (ENVIA). Velocys announces it has agreed with ENVIA and the other ENVIA joint venture partners to transfer rights of the site from ENVIA to another ENVIA JV partner in return for payment of $4.15m to Velocys. As part of the agreements, ENVIA will sell certain parts of the site infrastructure and remove the remaining equipment from the site. Velocys also releases its liens on all equipment from the site in return for a significant recovery under its collateralised loan note to ENVIA.
A total of $2.15 million has already been received by Velocys and an additional $2 million will be paid upon the completion of several performance milestones related to the removal of equipment.
Henrik Wareborn, CEO of Velocys, said:
“We are pleased to have worked collaboratively with the other ENVIA joint venture partners on a mutually beneficial solution, allowing the ENVIA site to be repurposed to a renewable natural gas plant and for Velocys to get a fair reimbursement for its financial contributions to ENVIA, during the strategically critical demonstration of the new full scale Velocys FT reactors over the last two years.
We continue to focus our attention, resources and assets on the development of our two commercial scale biorefineries in Immingham, UK and Natchez, Mississippi. We are leveraging all the experience and evidence embedded in the two Velocys microchannel FT reactors from ENVIA, which recently were returned to Velocys in Ohio, upon the completion of the commercial scale production run”.
– Ends –
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Ben Woodford
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Ownership of the two Velocys FT reactors returns to Velocys on conclusion of the technology demonstration run at the ENVIA site in Oklahoma City.
_ _ _
Velocys plc (VLS.L), announces it has executed an agreement with ENVIA Energy, LLC which officially completes the return of ownership of the two Velocys FT reactors to Velocys from ENVIA upon the conclusion of this new technology demonstration run at the ENVIA site in Oklahoma City which was completed last year.
The return of the catalyst and reactors to Velocys was intended under the terms of the original site license agreement with ENVIA. The two reactors were transferred to the Velocys Plain City, Ohio facility late last year for catalyst discharge. An initial review of the reactors concluded both reactors have met expected performance and durability measures throughout the allowed operating envelope.
Henrik Wareborn, CEO of Velocys, said:
“The Velocys FT reactors produced more than 1.6 million litres of fuels and waxes over the course of this new technology demonstration at ENVIA. We are pleased that our post-decommissioning review of the units further shows they performed as designed not only on start-up, but also over a significant period of time.
These two reactors and the associated performance data and learnings from ENVIA will be very valuable for Velocys and our project partners as we proceed with the development of our two commercial scale biorefineries in Immingham, UK and Natchez, MS.”
– Ends –
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Ben Woodford
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
ENVIA Energy has agreed with insurers to settle all claims and disputes related to the incident at the ENVIA plant.
_
Velocys plc (VLS.L), announces that ENVIA Energy, LLC has executed an agreement with Liberty Surplus Insurance Corporation and Zurich American Insurance Corporation to settle all claims and disputes related to the incident at the ENVIA plant announced on 15 May, 2018. The settlement amount totals $2.3 million and has already largely been paid to ENVIA with the final payment of $330,000 due to ENVIA on 25 March 2019. The agreement also removes any potential for current or future liability on part of ENVIA or Velocys.
In addition to its minority equity stake and secured lending to the ENVIA project, Velocys has been the technology licensor to ENVIA for the central processing unit (2 micro-channel FT reactors) which was designed to convert landfill gas to liquid fuels and which has been operational at the Oklahoma site during the last two years. Velocys believes that the objectives of this demonstration plant have now been met. This will allow Velocys to focus its resources on developing its commercial waste to jet fuel plants in the US and the UK as well as supporting its licensee in Oregon.
Henrik Wareborn, CEO of Velocys, said:
“We are pleased that ENVIA has reached this positive agreement with respect to the insurance settlement.
“The ENVIA demonstration plant has provided Velocys with an invaluable experience and track record, and creates a good platform for the company to move forward. It now allows us to focus our efforts on progressing with the development of our Bayou Fuels biorefinery project in Mississippi and our Altalto Immingham UK waste-to-jet-fuel project in the UK, working with our strategic partners to produce commercial scale volumes of renewable fuels.”
– Ends –
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Velocys has agreed a series of amendments in its licensing contracts with Red Rock Biofuels.
_
Velocys plc (VLS.L), announces it has agreed a series of amendments in its licensing contracts with Red Rock Biofuels LLC (RRB), regarding RRB’s license of Velocys Fischer-Tropsch reactors and proprietary catalyst for the RRB biorefinery under construction in Lakeview, Oregon, USA. The amendments are at RRB’s request and allow it to complete the biorefinery on their desired timeline.
The amended agreement will see Velocys accelerate delivery of the first of four reactors and first four charges of catalyst. It will also reduce the firm commitment for reactors from six to four but RRB will retain an option to acquire reactors 5 and 6 until the end of 2020, for delivery at the existing contract price. These changes have a positive impact on Velocys’ near-term cash flow of an estimated $1.1 million and a decrease in revenue of nearly $3 million (out of a total contract value of approximately $15 million). Should RRB exercise its option to purchase the two additional reactors the total contract value will return to approximately $15 million. RRB remains committed to purchase a total of six charges of catalyst in 2019.
Henrik Wareborn, CEO of Velocys, said:
“We collaborated with RRB to re-optimise the original agreement to help them complete the biorefinery on their desired timeline. This is an opportunity for us to demonstrate our commitment to delivering for our client the central processing unit in their biorefinery that will convert woody biomass to renewable jet fuel and diesel in Oregon.”
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Velocys has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.
_
Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that it has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.
The site of approximately 80 acres, near Immingham, North East Lincolnshire, is in an Enterprise Zone and earmarked for industrial development within the Local Plan. Development is subject to planning consent; the formal planning application process is expected to begin in 2019.
Altalto Immingham Ltd, a subsidiary of Velocys, has entered into an option agreement which gives it the right, but not the obligation, to acquire Rula Developments (Immingham) Limited, the company which owns the site, for up to three years. The project team is developing the engineering and business case for the project, and the project is also subject to funding and a final investment decision, which would include a decision to proceed with the acquisition of the Immingham site. In the event that the Company in consultation with its partners decides not to proceed with the purchase, the liabilities incurred as a result of the agreement are not material to Velocys.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.