Sustainable fuels technology company, Velocys, has revealed that its subsidiary, Altalto Immingham, has sold its 100% interest in Rula Developments (Immingham) Ltd (RDIL). 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 for £9.75 million, with a Call Option for Altalto to re-purchase RDIL within three years. In addition, and subject to exercise of this Call Option, Altalto has agreed to grant Foresight a right of rirst refusal to invest up to £100 million in the project, alongside British airways and other future investors, once the full funding is required.
This agreement follows on from a previous 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.
“Velocys is pleased to have Foresight involved in teh Altalto project, alongside British Airways. This is a further step in bringing our SAF enabling technology solution to market,” said Henrik Wareborn, CEO of Velocys.
“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. SAF 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.”
Sean Doyle, Chairman and CEO of British Airways added: “The development of SAF 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.”
