Velocys boosted by British Airways landfill-to-fuel update

16th Apr 2014 14:28

News that a British Airways biomass-to-jet fuel project has entered the site engineering phase has given a boost to AIM-listed Velocys, which is to provide its gas-to-liquids technology to the scheme's organiser Solena. A statement from British Airways on Wednesday said: "With the initial engineering design completed, Solena and its partners are now starting the detailed engineering of the GreenSky London facility."Solena said it anticipated starting construction of the site in approximately 12 months, after all permits and agreements have been obtained.The site of the project has been revealed as Thames Enterprise Park, part of the site of the former Coryton oil refinery in Thurrock, EssexBarclays, as financial advisor to the project, continued to support the GreenSky project, with project debt structure identified and preliminary agreements in place with an export credit agency to provide debt funding.British Airways has committed to purchasing all 50,000 tonnes per annum of the jet fuel produced at market competitive rates on a long-term basis. Shares in Velocys were up 1.4% to 151.63p by 14:30 on Wednesday.OH