Velocys, British Airways get £27m UK Advanced Fuels Fund grant
Velocys, British Airways get £27m grant from the UK’s Advanced Fuels Fund for their Altalto Immingham project. Altalto plans to turn municipal waste into Sustainable Aviation Fuel (SAF).
The grant will allow Altalto Immingham to deliver the Front-End Engineering Design (FEED). It will be distributed between December 2022 and March 2025 provided it is matched by commercial funding. Velocys says that it has letter-of-intent for commercial funding.
“We are extremely pleased the UK Government has awarded Velocys this important grant which will deliver the FEED stage for our Altalto Immingham reference project accelerating the commercial deployment of Velocys’ technology and delivering cashflow,” said Henrik Wareborn, CEO, Velocys.
By bringing in other investors Velocys expends to invest up to £8m of its own cash in the project between April 2023 and April 2025.
It has already received £1.7 million from the DfT’s Green Fuels, Green Skies competition. The project also won a series of grants totaling £934,000 from the Future Fuels for Flight and Freight competition (which ran before Green Fuels, Green Skies).
Velocys and British Airways will make a final decision on the project in 2025. It hopes to start production in 2027.
Wareborn added: “We welcome this clear commitment from Government to having commercial SAF plants built in the UK. We are delighted that a number of large commercial companies have indicated their support for the project through indications of matched funding contribution and the provision of services to progress the project.”