LONDON (dpa-AFX) - Shares of Velocys plc (VLS.L) were gaining around 4 percent in the morning trading in London after the renewable fuels company announced Tuesday that it has jointly agreed to extend the current option agreement with British Airways for the Altalto project to March 31, 2022.
The company noted that exercise of the option would give both parties equal equity ownership of 50/50 of Altalto Ltd and the right to appoint a Director.
Velocys further said it welcomes the UK Government's recent announcement of the launch of a new 15 million pounds 'Green Fuels, Green Skies' grant funding competition. This funding is intended to support the production of Sustainable Aviation Fuel or SAF.
Altalto Immingham Ltd intends to apply for a grant in this competition, on behalf of Velocys and British Airways. The results of the competition are expected to be announced by the Department for Transport on July 31, 2021.
Velocys said it expects the project will be in a position to launch its front-end engineering design or FEED later in 2021 subject to confirmed UK Government policy support and the addition of new investment partners in the project.
Further, the Secretary of State for Transport on March 25 opened a Consultation into amending the Renewable Transport Fuel Obligation or RTFO to increase the carbon savings it achieves.
Velocys said it fully supports its objectives and will be actively participating in the Consultation.
In London, Velocys shares were trading at 6.24 pence, up 4 percent.
Copyright RTT News/dpa-AFX