TIDMVLS
RNS Number : 8290F
Velocys PLC
24 March 2022
24 March 2022
Velocys plc
("Velocys" or the "Company")
Sale and purchase option agreed over Altalto Project site with
Foresight Group LLP
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 GBP9.75 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 GBP12.95 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 GBP100 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 GBP2.5 million and deferred
consideration. The deferred consideration payable is GBP7.25m,
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.
www.velocys.com
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. GBP8.4 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. www.fsg-investors.com
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.
www.britishairways.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEANDDAAKAEFA
(END) Dow Jones Newswires
March 24, 2022 03:00 ET (07:00 GMT)
Velocys (LSE:VLS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Velocys (LSE:VLS)
Historical Stock Chart
From Apr 2023 to Apr 2024
