Velocys PLC (AIM:VLS) shares were boosted significantly on Monday by news of grants together totaling almost £30mln.
The company's shares gained 19% in early deals in London to trade at 5.24p.
Velocys subsidiary, Altalto Immingham Ltd, has received a grant of up to £27mln from the UK Department for Transport's Advanced Fuels Fund, supporting the company’s Sustainable Aviation Fuel (SAF) project. It is part of a joint project with British Airways.
The grant will allow Altalto Immingham to move forward with the Front-End Engineering Design (FEED) stage of the project, which is aimed at delivering a commercial waste-to-SAF plant in Immingham,
The grant is expected to be distributed over the period from December 2022 to March 2025 and is conditional upon receipt of private sector matched funding.
Velocys, separately, announced that it has also been awarded a grant of £2.5mln from the same government-backed fund for an e-fuels project in the UK.
The e-fuels project, known as 'e-Alto', will be managed by Velocys and will include partners Clariant Catalysts, Technip Energies, and British Airways.
The grant will be used to conduct feasibility, technical validation, site selection, and pre-FEED engineering for a project to produce SAF from carbon dioxide and hydrogen.