City backs green jet fuel development as Velocys secures £25m investment
GREEN jet fuel refinery developer Velocys has secured £25 million from the City in order to deliver its next stage work.
A total of 312.5 million shares have conditionally been placed after an offering was made late last week.
Within hours the bookbuild was complete, with the process described as “significantly oversubscribed”. It is now subject to existing shareholder approval at a meeting next month.
The cash will be used to invest in manufacturing capability for the reactors it builds, to advance its Humber and US projects to the point of securing external investment into the detailed engineering stage, while also potentially securing a site option for extension of the former.
It is consented for land off Hobson Way, Stallingborough, close to Port of Immingham and an existing refining cluster.
Velocys chief executive, Henrik Wareborn, said: “Velocys has a technology solution to accelerate the decarbonisation transition for global aviation clients which has been commercially demonstrated and is ready for commercial scale deployment.
“As a capital-light, licensing company which benefits from recurring revenues from the full-service technology packages we provide to our clients, we have a strong platform for scalable growth. This placing and open offer, which has been significantly oversubscribed, will enable the investment required to advance our commercial traction and proceed towards our goals.
“On behalf of the board I would like to express my appreciation to the investors who have supported us in this placing.
“We look forward to continuing to pursue our strategy, which we believe will create value for all of our
stakeholders.”
Major acquirer is Lansdowne Partners, an investment management partnership that claims it represents some of the world’s largest and most sophisticated investors. It has upped its stake to 18.2 per cent.
As reported, shares were offered at 8p. With an open offer to existing eligible shareholders also made, looking to add a further £2 million.