Velocys has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.

Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that it has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.

The site of approximately 80 acres, near Immingham, North East Lincolnshire, is in an Enterprise Zone and earmarked for industrial development within the Local Plan. Development is subject to planning consent; the formal planning application process is expected to begin in 2019.

Altalto Immingham Ltd, a subsidiary of Velocys, has entered into an option agreement which gives it the right, but not the obligation, to acquire Rula Developments (Immingham) Limited, the company which owns the site, for up to three years. The project team is developing the engineering and business case for the project, and the project is also subject to funding and a final investment decision, which would include a decision to proceed with the acquisition of the Immingham site. In the event that the Company in consultation with its partners decides not to proceed with the purchase, the liabilities incurred as a result of the agreement are not material to Velocys.

Back in June, the Biofuels Digest reported that Velocys had secured funding to deliver the next development phase of their UK waste-to-sustainable jet fuel project.  A grant of £434k has been secured from the Department for Transport under the Future Fuels for Flight and Freight Competition.  The award of this grant, together with ongoing policy support provided by the Renewable Transport Fuel Obligation, will help this innovative waste-to-fuels project bring jobs and clean growth to the UK.  The project is being developed with the financial and technical support of Shell and British Airways, and £4.5m has been committed by the industry partners including Velocys.

The new facility will take hundreds of thousands of tonnes per year of post-recycled waste, destined for landfill or incineration, and convert it into clean-burning, sustainable fuels.  The jet fuel produced, to be used by British Airways, is expected to deliver over 70% greenhouse gas reduction and 90% reduction in particulate matter emissions compared with conventional jet fuel. This would contribute to both carbon emissions reductions and local air quality improvements around major airports. The project partners expect to reach a final investment decision in the first half of 2020.

The next development stage will include detailed pre Front End Engineering and Design engineering study and site permitting activities. Advanced Plasma Power has been selected as preferred gasification technology licensor for this UK waste-to-fuels project. APP offers an efficient and tested solution for conversion of waste to synthesis gas (for onward conversion to fuels via Velocys’ Fischer-Tropsch process).

In a boost to the long term commercial viability of the project, changes to the Renewable Transport Fuels Obligation came into force on the 15 April 2018. For the first time, renewable jet fuel is to qualify for credits under the RTFO, providing long term policy support for sustainable aviation fuels.

Read more:

Immingham site targeted for the UK’s first commercial scale waste-to-jet-fuel plant