July 16 (Renewables Now) - UK-based renewable fuels company Velocys Plc (LON:VLS) said Monday it has raised in a share placing GBP 7 million (USD 8.8m/EUR 7.8m) gross for work on its Mississippi Biorefinery Project, the expansion of its IP portfolio and other activities.
The company sold 233.3 million new ordinary shares at GBP 0.03 apiece to existing shareholders and new institutional investors. The proceeds will help it complete the development capital fund raising and initial stages of development of the Front End Engineering Design (FEED) for the project in Mississippi, and strengthen and extend its intellectual property (IP) portfolio. The funds will likely be used also to analyse and test catalyst and Fischer-Tropsch reactors from the recently completed demonstration run in Oklahoma, and for working capital and central costs.
The placing is conditional upon the passing of certain resolutions at a General Meeting in London on July 31.
The biorefinery in Natchez, Mississippi is one of Velocys’ two main sustainable fuels projects. The facility, which is planned to be solar-powered, will use as feedstock waste from the paper and lumber industries to produce diesel fuel for road transportation in the US. Pre-FEED has already been completed.
The company’s other project is in the UK. It will be turning household, commercial and industrial waste into clean-burning, sustainable aviation fuel and naphtha. A site for that plant has been selected near Immingham, North East Lincolnshire. Shell and British Airways are Velocys’ partners in the project.
(GBP 1 = USD 1.25/EUR 1.11)