Velocys plc (VLS.L), the sustainable fuels technology company, announces that, at its Annual General Meeting held earlier today, all resolutions put to shareholders were duly passed by means of a Poll.
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.
| 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 2021 and the Directors’ and auditors’ reports thereon | 588,201,272 | 99.97 | 184,835 | 0.03 | 588,386,107 | 109,029 |
| 2. To approve the Directors’ Remuneration Report for the year ended 31 December 2021 | 550,447,082 | 99.32 | 3,788,593 | 0.68 | 554,235,675 | 34,259,461 |
| 3. To re-elect Philip Holland | 588,053,823 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 4. To re-elect Henrik Wareborn | 588,053,773 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 5. To re-elect Darran Messem | 588,053,823 | 99.95 | 281,276 | 0.05 | 588,335,099 | 160,037 |
| 6. To elect Ann Markey | 588,124,814 | 99.96 | 210,285 | 0.04 | 588,335,099 | 160,037 |
| 7. To elect Tom Quigley | 588,114,539 | 99.96 | 220,560 | 0.04 | 588,335,099 | 160,037 |
| 8. To re-appoint PricewaterhouseCoopers LLP as auditors to the Company | 561,772,368 | 95.47 | 26,627,803 | 4.53 | 588,400,171 | 94,965 |
| 9. To authorise the Directors to fix the remuneration of the auditors | 584,869,771 | 99.40 | 3,513,336 | 0.60 | 588,386,107 | 109,029 |
| 10. To amend the Rules of the Velocys plc 2021 Share Option Scheme to reduce the maximum dilution limit from 25% to 10% of the issued share capital | 564,627,866 | 95.99 | 23,560,183 | 4.01 | 588,188,049 | 307,087 |
| 11. To authorise the Directors to allot equity securities pursuant to the articles of association of the Company | 587,883,154 | 99.92 | 483,300 | 0.08 | 588,366,454 | 178,682 |
| 12. To authorise the Directors to allot equity securities for cash disapplying pre-emption rights in the Company’s articles of association | 272,045,100 | 90.99 | 26,945,753 | 9.01 | 298,990,853 | 289,504,283 |
| 13. To authorise the Company to purchase its own shares | 544,015,025 | 95.89 | 23,332,203 | 4.11 | 567,347,228 | 21,147,908 |
* ‘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.
Confirmation of Directorate Change
As previously announced, Philip Sanderson will be appointed as an Executive Director of the Company and as Chief Financial Officer with effect from 22 June 2020. Andrew Morris did not stand for re-election at the Annual General Meeting.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce the appointment of Philip Sanderson as an Executive Director of the Company and as Chief Financial Officer (“CFO”) with effect from 22 June 2022. This follows the Company’s announcement in February 2022 that Andrew Morris had advised of his intention to step down as CFO and will not stand for re-election at the Company’s annual general meeting on 21 June 2022. To ensure a smooth transition, Andrew will remain with the business for an agreed period.
Philip joins Velocys with over 30 years of international finance and commercial expertise in advanced fuels and lubricants, large scale capital project execution and low carbon energy in a range of divisions and affiliates of Shell Plc. Philip is joining us directly from a role of Vice President Finance Global Marketing. Philip has an impressive track record in commercial delivery, strategic planning, corporate governance and consistently driving shareholder value.
Philip’s experience includes roles in business partnering, financial and risk management, governance and assurance, and major transaction engagement. Additionally, he has extensive experience of capital project development and project financing.
Philip holds a BA (hons) in Mathematics from The University of Oxford and is an Associate of the Chartered Institute of Management Accountants.
Additional information:
The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies:
Philip Thomas Edward Sanderson, (aged 52) holds, or has held, the following current and former directorships in the past five years:
Current Directorships
The Learning Through Landscapes Trust
Previous Directorships in the last five years
Shell and Turcas Petrol A.S.
Shell Downstream South Africa (Pty) Ltd.
Shell East Europe Company Limited
The Consolidated Petroleum Company Limited
The Shell Company of Nigeria Limited
The Shell Company of Turkey Limited
The Shell Company (W.I.) Limited
Philip Sanderson does not currently hold any shares in the Company.
Henrik Wareborn, CEO, said:
“Philip’s commercial acumen coupled with a senior financial background from a global integrated energy major will help Velocys to accelerate its growth strategy of providing integrated, IP-protected, decarbonisation technology to clients in the most difficult to abate industrial sectors, such as aviation fuel.
“I want to thank Andrew for his significant contributions to Velocys over the last 5 years, initially as a non-executive board member and over the last three years as CFO”.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that copies of the 2021 annual report and accounts, together with the notice of Annual General Meeting, have been sent to all registered shareholders and will be made available for viewing on the Company’s website at www.velocys.com.
Annual General Meeting
The Annual General Meeting will be held at 10.45 am on Tuesday 21 June 2022 at The Sadler Building, Heatley Road, The Oxford Science Park, Oxford OX4 4GE.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys, the sustainable fuels technology company, is pleased to announce its final audited results for the year ended 31 December 2021, which shows the Company making good progress in the technology delivery and commercialisation phase of its growth strategy.
Velocys plc (VLS.L), the sustainable fuels technology company, is pleased to announce that Henrik Wareborn, CEO, and Andrew Morris, CFO, will provide a live presentation relating to the results for the period ending 31 December 2021 via the Investor Meet Company platform on Friday 20th May 2022 at 1:00pm BST.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet VELOCYS PLC via:
www.investormeetcompany.com/velocys-plc/register-investor
Investors who already follow VELOCYS PLC on the Investor Meet Company platform will automatically be invited.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Head of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (AIM: VLS), the sustainable fuels technology company, will report its results for the full year ended 31 December 2021 on Tuesday, 17 May 2022.
A results presentation for sell-side analysts will be held on Microsoft Teams at 11.00am on the morning of results, hosted by Henrik Wareborn, CEO and Andrew Morris, CFO.
If you would like to receive the dial in details, please contact Buchanan at velocys@buchanan.uk.com
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
Velocys plc (AIM: VLS), the sustainable fuels technology company, is pleased to announce, further to the business update on 4 April 2022, that it has entered into a contract with a European renewable fuels developer to provide initial engineering services to a project, which is in the planning stages. Whilst the revenue for this initial stage of the project is de minimis (and project progression to material revenues to be determined), the agreement broadens the Company’s customer base and demonstrates the ability to progress its pipeline of potential global customers towards commercial contracts. This is also in line with the aims of the Company’s business development function, headed by Andy Bensley.
The Company has also agreed with British Airways (”BA”) to extend both the UK Altalto project Joint Development Agreement and the Option Agreement for BA to acquire 50% of Altalto Ltd by one year to 31 March 2023. The original option was signed on 12 May 2020 and initially extended on 30 March 2021.
Velocys offers its customers a technology solution enabling commercial scale production of sustainable synthetic fuels from a variety of waste materials, such as municipal, commercial and forestry residue. Sustainable aviation fuel, SAF, is the only commercially available alternative to fossil aviation fuels.
The importance of sustainable synthetic fuels from bio-based feedstocks was also recently highlighted by President Biden, as part of the US aviation decarbonisation agenda.
The Company’s customer pipeline is growing with increased demand for the Velocys technology to ramp up the commercial scale production of sustainable synthetic fuels to accelerate the global clean energy transition, and to strengthen host country fuel independence.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing customers with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. Synthetic fuel is the only commercially available, permanent alternative to fossil aviation fuels. The Velocys technology is IP-protected in all major jurisdictions.
Two reference projects (Bayou Fuels, US, and Altalto, UK) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration.
Velocys is enabling commercial scale synthetic fuel production in response to the clean energy transition, with significant additional positive air quality impacts.
As a sustainable fuels technology company, Velocys welcomes President Biden’s commitment to incentivise the production of sustainable aviation fuel (SAF). Synthetic fuel, enabled by the Velocys technology, is THE only ‘here-and-now’ solution to decarbonising aviation as a drop-in approved fuel, and supports both environmental improvements and energy security.
The President’s commitment reflects the importance and need for technology solutions to produce synthetic fuels and recognises the value of the industry itself. We look forward to further developments, and their support of Velocys’ landmark US biorefinery reference project, Bayou Fuels in Mississippi.
President Joe Biden said:
“I’ve spoken with the leading heads of all major airlines. It’s going to require billions of gallons of sustainable aviation fuel. And you simply can’t get to net zero by 2050 without biofuels.
“Aviation isn’t a case where you blend in a little bit of biofuel. It’s where it’s called ‘drop in’ – meaning 100% biofuel.
“To bring that future within reach, I proposed a sustainable aviation fuel tax credit that we brought together — the governments, the agencies, aircraft manufacturers, airlines, fuel producers, airports — to advance cleaner and more sustainable fuels for American aviation. That’s how we’re going to get there. And we can.”
Velocys plc (AIM: VLS), the sustainable fuels technology company, is pleased to provide the following update.
During 2021 we saw the achievement of a number of important objectives in our growth strategy culminating in two multi-year Sustainable Aviation Fuel (SAF) offtake agreements; the selection of our technology for an e-fuels project commissioned by the Government of Japan; and a significant capital raise to be used to increase the delivery capacity of Velocys’ technology to unlock client sales with a view to achieving our target of net positive cashflow during 2024.
Since the year end, we have completed the sale and purchase option agreement over the company owning the land for the Altalto project site; appointed Andy Bensley as Global Head of Business Development and Technology Delivery along with other key technical role appointments at our catalysis and reactor facility in Ohio. We are moving into 2022 with a clear focus on executing our agreed commercial strategy.
Project update – Bayou Fuels
Worley, our international engineering contractor, has completed the interim engineering (FEL-2) work during Q1 2022 and Koch Project Solutions continue to provide project development support to our SAF biorefinery project in Mississippi, ahead of finalisation of contract execution strategy and FEED award subject to financing.
The site landlord; the local development authority in Mississippi, is well under way to complete the construction of the final section of the levee protecting the biorefinery site by the Mississippi river. Completion is expected later this summer.
We are eagerly anticipating clarity on government policy support from both the US and UK Governments to provide sufficient long term revenue stability for biorefineries converting sustainable residues into renewable fuels. This is a condition for successful capital formation for both projects. We are currently anticipating the US Congress to pass favourable legislation including the provision of a SAF Producer Tax Credit, indexed to the carbon intensity of the fuel, in the summer which will allow for the launch of the Series A fundraise for Bayou Fuels in the second half of this year. We expect the UK Government to need some additional time to provide matching competitive incentives, which would therefore enable Altalto to go into a Series A fundraise in H1-23.
In anticipation of such policy support, we have launched an RFP process with a selection of US investment banks and advisers in relation to services including underwriting tax-exempt municipal bonds, mezzanine, and equity to finance the final development stage and subsequent construction of the Bayou Fuels biorefinery in Mississippi.
A full 15-year SAF and environmental credit offtake agreement with Southwest Airlines and a 10 year SAF and environmental credit offtake MOU with IAG were entered into in November 2021. As planned, IAG and Velocys are converting the MOU into a fully termed offtake agreement with a view to having that completed later in Q2. A further announcement will be made in due course.
Operations and business development update
We have recently secured a 15 year lease for a modern and sustainable facility in Columbus, Ohio where we will be consolidating our catalysis services, microchannel reactor core assembly and technology licensing under one roof. In line with our recent Placing Circular, this will involve a capital investment of up to £1.5 million in the building enhancements to fit our specific needs and £4.8 million in reactor core assembly automation enabling steady output of at least 12 complete FT reactors per year. This dovetails with the expiry next year of the 10 year lease of our current technology centre in Columbus, Ohio.
We are also pleased to announce the potential sale of the undeveloped Ashtabula site in Northern Ohio which was acquired as part of the Pinto Energy acquisition in 2014 and was intended to be used for a GTL plant at the time. The Ashtabula Port Authority has provisionally agreed to acquire the site for an undisclosed price subject to further due diligence by the purchaser.
We have deepened our collaboration with TOYO regarding biomass to SAF (BtL) and power to SAF (PtL) solutions for the energy transition in Japan. The commercial scale NEDO2 BtL project is currently in FEL2 stage and progressing to plan and the Power to Liquids demonstration project is advancing as planned. Meanwhile our Business Development pipeline continues to grow with a number of feasibility studies with biorefinery plant developers ongoing to accelerate these projects, which we expect to mature into commercial contracts in due course.
Project update – Altalto
Further to our announcement on 24 March 2022, we, together with our partner British Airways are delighted to welcome Foresight Group LLP into the Altalto Immingham municipal solid waste to jet fuel project in Immingham where Velocys is providing project development services, engineering and FTS technology.
Over the last few months, we have completed site engineering, geotechnical survey and integration of carbon sequestration of biogenic CO2 in preparation for the connection of the Altalto plant, when built, into the new East Coast Carbon Capture and Storage (CCS) cluster, which is being developed by a consortium of major corporations including Drax, BP and Equinor.
This leading CCS cluster, designed to sequester 40kt of CO2 per day, is scheduled to come on stream around the same time as the Altalto plant is expected to be commissioned, in 2027, subject to funding of both Altalto and the CCS cluster. Our application to BEIS to participate in the East Coast CCS cluster has met the eligibility criteria and passed through to Phase 2 of the evaluation process to identify and sequence CCS clusters suitable for deployment in the mid-2020s.
We have benefitted from the £1.9m Green Fuels Green Sky grant awarded by the DfT in August 2021, which has largely covered our costs for the essential site engineering and other site-related work through to Q2/22.
Notice of publication of Velocys plc Annual Report and Accounts 2021
The Company’s results for the year ended 31 December 2021 are expected to be announced during the week commencing 16 May 2022. A further announcement will be made nearer the time.
Henrik Wareborn, CEO of Velocys, said:
“The Velocys group is well positioned at the nexus of energy security and the net zero transition. Through the deployment of our patented demonstrated FT and catalyst technology, we provide decarbonisation solutions for hard-to-abate sectors such as commercial aviation, to supply negative carbon intensity fuels to airlines and others committed to net zero targets, while also reducing import dependency on fossil fuels.
“The improved air-quality impact of the synthetic fuels our customers produce using our patented technology is an additional driver of growth in demand for our technology. Synthetic Paraffinic Kerosene, SPK, produced using Velocys’ proprietary super-active catalyst and FT Synthesis, FTS, contains less than 15ppm sulphur compared to up to 3000ppm sulphur for conventional fossil jet fuel. This in turn sharply reduces the amount of PM2.5 (2.5 micron size Particulate Matter) generated by the combustion of the fuel.”
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing clients with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. SAF (‘Sustainable Aviation Fuel’) is the only commercially available, permanent alternative to fossil aviation fuels.
The technology is IP-protected in all major jurisdictions.
Two reference projects (Altalto, UK, and Bayou Fuels, US) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration. Velocys is enabling commercial scale SAF production in response to the clean energy transition.
Velocys technology pathway is enabling the next generation of low carbon sustainable fuels with significant additional positive air quality impacts.
Velocys plc (AIM: VLS), the sustainable fuels technology company, announces that further to the notification of 17 December 2021 (“Prior Announcement”), Altalto Immingham Ltd (“Altalto”), a subsidiary of Velocys, has sold its 100% interest in Rula Developments (Immingham) Limited (“RDIL”), as planned. RDIL owns the site for the proposed Altalto waste-to-sustainable-fuel project, which is being developed in collaboration with British Airways.
RDIL has been sold to funds managed by Foresight Group LLP (“Foresight”), for £9.75 million, with a call option for Altalto to re-purchase RDIL within three years (“Call Option”). The Call Option will require Altalto, and any new project partners, to pay up to £12.95 million in aggregate over the option period (the majority of which relates to a final payment in the event of exercise of the Call Option).
In addition, and subject to exercise of the Call Option, Altalto has agreed to grant Foresight a right of first refusal to invest up to £100 million in the project, alongside British Airways and other future investors, once the full funding is required.
Foresight brings a proven track record and history of investing in energy transition infrastructure. Following the sale, the Project has retained the right to access the land for maintenance and pre-development activities associated with its existing planning permission. Commencement of construction remains subject to further clarification of government policy support for such projects.
This agreement follows on from the Prior Announcement, when Altalto exercised an option to acquire a 100% interest in RDIL with an initial part-payment of £2.5 million and deferred consideration. The deferred consideration payable is £7.25m, which will now be settled as part of this transaction, thereby satisfying all obligations under the historic option agreement.
Henrik Wareborn, CEO of Velocys, said:
“Velocys is pleased to have Foresight involved in the Altalto project, alongside British Airways. This is a further step in bringing our SAF enabling technology solution to market.
“The Velocys technology pathway utilises domestic non-fossil feedstocks from sustainable carbon sources which have no alternative use, such as municipal solid waste and forestry residue. Sustainable aviation fuel has the same composition as conventional jet fuel, is globally approved and is suitable for immediate use. We firmly believe our technology will play a key role in helping to decarbonise the aviation sector, meet net zero targets, and improve the energy and fuel security of the UK.”
David Hughes, CIO of Foresight, said:
“Foresight is delighted to become involved in the Altalto project through the acquisition of the proposed site. The Project is consistent with our aims of investing in sustainable businesses that are looking to advance the energy transition.”
Sean Doyle, Chairman and CEO of British Airways, said:
“It’s great to have Foresight with us to help deliver the Altalto project, as we make our way on our journey towards net zero by 2050. The development of sustainable aviation fuel is an important part of our near to medium-term plan to decarbonise, alongside carbon capture technology. We believe the UK can be a world leader in this, and it’s crucial we work with both private industry and Government to drive forward this ambitious and hugely important work.”
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.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
Andrew Morris, CFO
Lak Siriwardene, Director of Communications & Sustainability
+44 1865 800821
Panmure Gordon (UK) Limited (Nomad and Joint Broker)
Hugh Rich (Corporate Broking)
Emma Earl (Corporate Finance)
John Prior (Corporate Finance)
+44 20 7886 2500
Shore Capital Stockbrokers Limited (Joint Broker)
Henry Willcocks (Corporate Broking)
Toby Gibbs (Corporate Advisory)
James Thomas (Corporate Advisory)
Liam Zabludowicz (Corporate Advisory)
+44 20 7408 4090
Radnor Capital (Investor Relations)
Joshua Cryer
Iain Daly
+44 20 3897 1830
Buchanan (Financial PR)
Helen Tarbet
Simon Compton
+44 20 7466 5000
Notes to Editors
Velocys is an LSE-listed, international sustainable fuels technology company, traded on the AIM, providing clients with a technology solution to enable the production of negative Carbon Intensity synthetic, drop-in fuels from a variety of waste materials. SAF (‘Sustainable Aviation Fuel’) is the only commercially available, permanent alternative to fossil aviation fuels.
The technology is IP-protected in all major jurisdictions.
Two reference projects (Altalto, UK, and Bayou Fuels, US) are designed to accelerate the adoption and standardise the Velocys proprietary Fischer Tropsch (FT) technology with an integrated end to end solution, including renewable power and carbon sequestration. Velocys is enabling commercial scale SAF production in response to the clean energy transition.
Velocys technology pathway is enabling the next generation of low carbon sustainable fuels with significant additional positive air quality impacts.
Foresight Group Holdings Limited
Foresight Group was founded in 1984 and is a leading infrastructure and private equity investment manager, operating from 12 offices across six countries in Europe and Australia with AUM of c. £8.4 billion as at 31 December 2021. With a long-established focus on ESG and sustainability-led strategies, it aims to provide attractive returns to its institutional and private investors from hard-to-access private markets. Foresight Group manages over 300 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as renewable energy enabling projects, energy efficiency management solutions, social and core infrastructure projects and sustainable forestry assets. Its private equity team manages eight regionally focused investment funds across the UK, supporting over 120 SMEs. Foresight Group listed on the Main Market of the London Stock Exchange in February 2021.
British Airways
As a global airline and the UK’s flag carrier, British Airways has been flying its customers to where they need to be for more than 100 years.
The airline connects Britain with the world and the world with Britain, operating one of the most extensive international scheduled airline route networks together with its joint business, codeshare and franchise partners.
British Airways flies to destinations in more than 65 countries. Its principal place of business is London, with its main home at Heathrow Terminal 5.
In 2021, the airline won six Business Traveller Awards including Best Short-Haul Carrier, Best Airport Lounge, Best Frequent Flyer Programme, Best Travel App and Best New Seat.
In September 2021, British Airways launched its sustainability programme, BA Better World, committing to put sustainability at the heart of everything it does and with a clear roadmap to achieve net zero carbon emissions by 2050.
British Airways is a founding member of the airline alliance oneworld, which serves around 1,000 destinations across the globe.