June 18 (Renewables Now) - UK-based renewable fuels start-up Velocys Plc (LON:VLS) said today it has secured GBP 4.9 million (USD 6.5m/EUR 5.6m) of funding for the next development phase of its waste-to-jet fuel project in the UK.
Royal Dutch Shell Plc (AMS:RDSA) and British Airways are providing financial and technical support for the development of the project, which has successfully completed its initial feasibility stage.
The funding is made up of a GBP-434,000 grant awarded by the Department for Transport under the Future Fuels for Flight and Freight Competition and GBP 4.5 million from the industry partners including GBP 1.5 million from Velocys, a big part of which is in the form of an in-kind contribution.
The next stage of development will include detailed pre-front end engineering and design (FEED) study and site permitting activities. The project partners expect to reach a final investment decision in the first half of 2020, Velocys said.
"Government funding, recent policy changes and successful completion of the feasibility study have enabled Velocys and its partners to move forward to the next phase in developing the UK's first waste-to-renewable jet fuel plant," said Velocys chief executive David Pummell.
(GBP 1 = USD 1.325/EUR 1.141)