18th Jan 2021 10:36
(Alliance News) - Shares in Velocys dived on Monday after it said Shell International Petroleum Company Ltd has withdrawn from the Altalto joint development agreement but assured there is no direct financial impact on the project or the company as a result of the exit.
The stock was trading 21% lower at 8.12 pence each on Monday morning in London.
The Oxford, England-based fuels technology company noted the waste-to-jet fuel project has no immediate funding calls and will continue according to its existing development plan.
Velocys added it will continue to work with International Consolidated Airlines SA's British Airways PLC in order to secure finance for the Altalto Immingham plant, highlighting discussions with potential sources of finance for the project, talks which it said have been underway for several months and signal strong interest in the sector.
It added preparations to apply for government funding for the Immingham project is underway, noting that while there is no guarantee that an application would be successful, it believes the project is well-placed to secure government funding.
"We are looking forward to moving Altalto Immingham to the next stage of development in 2021. Altalto Immingham is the most advanced commercial sustainable aviation fuel project in the UK and is ready to take advantage of the strong push from both government and industry for the decarbonisation of aviation, especially using waste feedstocks," said Chief Executive Henrik Wareborn,
By Ife Taiwo; [email protected]
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