October 15 (Renewables Now) - UK-based renewable fuels start-up Velocys Plc (LON:VLS) is holding talks with some parties interested in investing in its Bayou Fuels biorefinery project in the US state of Mississippi.
More specifically, the company is discussing the matter with "a shortlist of strategic investors", with the idea of having them cover the development costs to financial investment decision (FID), Velocys said in a statement today. The company previously noted that FID is expected in the second half of 2019.
The biorefinery, to be located in Natchez, Mississippi will use woody biomass as feedstock. It is expected to produce enough fuel to run around 40,000 diesel and gasoline trucks, the company says.
In August, the US Department of Agriculture (USDA) issued a Finding of No Significant Impact (FONSI) on the environmental assessment report for the project.
According to the latest update, Velocys has over GBP 10 million (USD 13.2m/EUR 11.4m) in cash resources.
(GBP 1.0 = USD 1.315/EUR 1.136)