TIDMVLS

RNS Number : 9647V

Velocys PLC

17 December 2021

Velocys plc

("Velocys" or the "Company")

Exercise of Option over Altalto Project Site

Velocys plc (AIM: VLS), the sustainable fuels technology company, today announces that further to the announcement of 25 November 2021 and following completion of the fundraising, Altalto Immingham Ltd ("Altalto") (a subsidiary of Velocys) has exercised an option agreement to acquire Rula Developments (Immingham) Limited ("RDIL") with an initial part-payment of GBP2.5 million. RDIL owns the site of the proposed Altalto project, near Immingham in North East Lincolnshire, which is being jointly developed by British Airways PLC ("BA") and Velocys.

Pursuant to the agreement, the total consideration to acquire the site is being satisfied by a GBP2.5 million part-payment, funded through an inter-company loan from Velocys to Altalto. A further deferred consideration amount of up to GBP8.5 million is payable by 30 September 2022. As previously announced, Velocys is discussing the onward purchase of RDIL (and subsequent grant back to Altalto of a future option to purchase RDIL within 3 years) with a third party with the intention that the purchase price for RDIL paid by the third party will cover the remaining consideration payable by Altalto in 2022.

Detailed engineering for the Altalto project is expected to commence in 2023. Financial close is expected in 2024, with construction of the plant being targeted to commence in 2024 and to be completed by mid-2026, following which commissioning and start-up will commence, with full scale commercial operation expected in 2027.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation 596/2014/EU (MAR).

- END -

Enquiries:

 
 Velocys 
  Henrik Wareborn, CEO 
  Andrew Morris, CFO 
  Lak Siriwardene, Director of Communications 
  & Sustainability                               +44 1865 800821 
 
 Panmure Gordon (UK) Limited (Nomad and Joint 
  Broker) 
  Emma Earl (Corporate Finance) 
  John Prior (Corporate Finance) 
  Hugh Rich (Corporate Broking)                  +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 
 
 Buchanan (Financial PR) 
  Helen Tarbet 
  Simon Compton                                  +44 20 7466 5000 
 
 Radnor Capital (Investor Relations) 
  Joshua Cryer 
  Iain Daly                                      +44 20 3897 1830

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 in the US and UK (Bayou Fuels and Altalto) 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

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(END) Dow Jones Newswires

December 17, 2021 03:01 ET (08:01 GMT)

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