Velocys, the sustainable-fuels technology company, experienced a surge in shares following the announcement of the U.K. government’s commitment to implementing a revenue certainty program for sustainable aviation fuel (SAF). This development is expected to have a highly positive impact on Velocys’ Altalto Immingham project.
At 1008 GMT, shares saw a 9.1% increase, rising by 0.12 pence to reach 1.5 pence.
The company revealed that the government’s confirmation of its dedication to the program, which was delivered on Monday, provides a reassuring long-term signal to investors and aids in securing the financing needed for the construction of Altalto.
Velocys emphasized that the project is progressing well in the front-end engineering design stage. Additionally, it has successfully concluded license and engineering service agreements.
Ongoing discussions with private sector investors are taking place to secure the remaining funding required for the project by the year’s end.
Henrik Wareborn, Chief Executive of Velocys, commented on this significant government commitment: “This is a major step towards obtaining the capital necessary to further support SAF projects in the U.K. The revenue certainty outlined by the Department for Transport will provide SAF producers with increased confidence in the earnings generated from projects like Altalto. Consequently, these projects will be better positioned to attract the required finance.”