Award of £2.5m Grant for New E-Fuels Project
Velocys plc, the sustainable fuels technology company, announces that in addition to the £27m grant from the UK Department for Transport’s (DfT) Advanced Fuels Fund for the Altalto waste-to-SAF project, announced separately, it has also been awarded a grant of £2.5 million from the same fund to contribute its technology to an e-fuels project in the UK in collaboration with several new and existing partners (E-Fuels Project).
The Advanced Fuels Fund provides grants to support the development of commercial-scale SAF plants and has a specific total allocation of £22 million for the development of e-fuel projects. These are fuels produced using renewable (decarbonised) electricity rather than vegetable oils or waste.
The £2.5 million grant awarded to Velocys under this e-fuels allocation will be used in conjunction with the E-Fuels Project’s partners to conduct feasibility, technical validation, site selection, and pre-FEED engineering for such a project to make SAF from carbon dioxide and hydrogen, in the UK.
The E-Fuels Project, to be known as “e-Alto”, will be managed by Velocys, partners include Clariant Catalysts (Clariant), Technip Energies (T.EN) and British Airways.
The key objective of the Advanced Fuels Fund is to kick-start the UK advanced fuels sector with the commercial deployment of innovative fuel production technologies that are capable of significantly reducing UK aviation carbon dioxide emissions.
Henrik Wareborn, CEO, said: “We are very pleased to have been awarded this grant as it reflects the capability of the Velocys technology use of different feedstocks, ability to attract world-class partners, and access to a new project portfolio. Our patent-protected technology makes it possible to make synthetic liquid fuels, like SAF for the airline industry, from sustainable waste and biomass, as well as from renewable power and CO2. This award also shows a strong commitment from the UK Government to accelerate the Department for Transport’s Jet Zero strategy for achieving net zero aviation by 2050.”