Velocys PLC (AIM:VLS) said it won a contract with a European renewable fuels developer to provide initial engineering services to a project currently in the planning stages.
Although the initial contract revenue is “de minimis”, the deal will broaden its customer base, the sustainable fuels technology company said in a statement.
In addition, the Oxford University spin-out agreed with International Consolidated Airlines Group (LSE:IAG) (IAG) subsidiary British Airways (BA) to extend both the UK Altalto project joint development agreement and the option agreement for BA to acquire 50% of Altalto Ltd by one year to 31 March 2023.
The Altalto project is a collaboration between Velocys and BA to make sustainable aviation fuel (SAF) from a variety of waste materials. The original option was signed on 12 May 2020 and initially extended on 30 March 2021.
Velocys said its customer pipeline is growing with increased demand for its technology to ramp up the commercial scale production of sustainable synthetic fuels “to accelerate the global clean energy transition, and to strengthen host country fuel independence”.