Velocys gets another DfT grant for sustainable fuels project

Sustainable fuels technology company Velocys has secured a further £0.5m of grant funding for the Altalto waste-to-fuels project from the Department of Transport (DfT), it announced on Friday, under the ‘Future Fuels for Flight and Freight Competition’ (F4C).

The AIM-traded firm said the proposed Altalto Immingham plant was planned to convert “hundreds of thousands of tonnes per year” of residual waste into sustainable fuels - primarily aviation fuel.

It was awarded a grant of £0.4m in the first stage of the F4C in 2018, and was shortlisted to receive an award in the second stage.

The DfT had now made £0.5m of the second stage grant available to Velocys, with the board saying it was one of the two remaining companies expected to receive the balance of funding in the stage, subject to completion of future project milestones.

“We are very pleased to have the continued support of the Department for Transport for this project,” said chief executive officer Henrik Wareborn.

“The Altalto project is a key step towards a substantial supply of sustainable aviation fuel in the UK, which is essential for meeting net zero carbon targets.

“This grant, particularly at the present time, underlines the importance of our project to the government's plans for a green recovery.”

At 1143 BST, shares in Velocys were down 0.27% at 4.99p.