Velocys plc (VLS.L) announced that in addition to the £27 million grant from the UK Department for Transport's Advanced Fuels Fund for the Altalto waste-to-SAF project, announced separately, it has also been awarded a grant of £2.5 million from the same fund, to contribute its technology to an e-fuels project in the UK in collaboration with a number of new and existing partners.   The Advanced Fuels Fund provides grants to support the development of commercial-scale SAF plants and has a specific total allocation of £22 million for the development of e-fuels projects. These are fuels produced using renewable (decarbonised) electricity rather than vegetable oils or waste.

The £2.5million grant awarded to Velocys under this e-fuels allocation will be used in conjunction with the E-Fuels Project's partners to conduct feasibility, technical validation, site selection and pre-FEED engineering for such a project, to make SAF from carbon dioxide and hydrogen, in the UK. The E-Fuels Project, to be known as "e-Alto", will be managed by Velocys, partners include Clariant Catalysts, Technip Energies and British Airways. The key objective of the Advanced Fuels Fund is to kick-start the UK advanced fuels sector with the commercial deployment of innovative fuel production technologies that are capable of significantly reducing UK aviation carbon dioxide emissions.