Velocys plc, the Oxford-based sustainable fuels technology company, has raised £20 million by way of a placing and retail offer.
Earlier this month we reported that Velocys plc, had secured a further £0.5 million of grant funding from the Department for Transport, for its Altalto waste-to-fuels project from the Department for Transport (DfT), under the Future Fuels for Flight and Freight Competition (F4C).
The proposed Altalto Immingham in Lincolnshire, plant is planned to convert hundreds of thousands of tonnes per year of residual waste into sustainable fuels, mainly aviation fuel.
The fuel, based on technology supplied by Velocys, offers net greenhouse gas savings of around 70 per cent for each tonne of conventional jet fuel it displaces. It would also improve air quality, with up to 90 per cent reduction in particulate matter (soot) from aircraft engine exhausts and an almost total reduction in sulphur oxides.
Subject to additional funding and financial close, construction is targeted to begin in 2022, and the facility could be producing fuel from 2025.
Henrik Wareborn, CEO of Velocys, said: “We are delighted with the support shown by both new and existing investors in this fundraising – we are particularly pleased to see a number of high-quality institutional investors join our shareholder register. The offering was upsized from £10 million to £20 million to help meet the additional demand but we are pleased to say that even at this higher level the issue was still significantly oversubscribed.
“We look forward to seeing our retail investors participate in the forthcoming Open Offer to the extent that they have not been able to already subscribe via the Retail Offer. “This capital raise accelerates our ability to provide commercial scale turn-key solutions to fuel producers in the energy transition away from fossil fuels into sustainable fuels towards improved air quality and net zero carbon emissions.”