The Velocys PLC (LON: VLS) share price rose 6.26% after issuing an update about its operations during the 12 months to 31 December 2022. The company noted that its unaudited financial records indicated that its performance aligned with analysts’ expectations.
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The company had £13.4 million in cash at the end of December, a drop from the £25.5 million it had in December 2021. However, investors will have to wait until May 2023 for the final audited results for 2022.
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The sustainable fuels company highlighted some of the milestones it had achieved in the past year, including the award of two grants from the UK government of £29.5 million. The grants were associated with the Altalto and e-Alto projects.
The largest proportion of the funds, £27 million, was earmarked for the Front-End Engineering Design (FEED) of the Altalto project, with the remaining £2.5 million going towards the e-Alto new e-fuels project. In addition, the company secured long-term control of the Altalto project site in partnership with the Foresight Group.
Velocys also revealed that it had signed a Master Relationship Agreement (MRA) with Bechtel Limited, a renowned global engineering group, to partner on some projects and deliver crucial project milestones, including future commercialisation efforts.
Bechtel has a solid reputation as an engineering firm and will bring much-needed experience delivering complex engineering projects worldwide. The two companies intend to create an EPC execution model for Velocys sustainable fuel plants.
Velocys also provided an operations outlook for 2023, where it expects to execute a Series A funding round for its Bayou Fuels project, which will launch in Q2 2023. The company expects the project to enter the FEED stage in Q4 2023, with a Financial Investment Decision (FID) planned for Q1 2025.
The Bayour Fuels project is expected to start construction after the FID in Q1 2025, with the commissioning and initiation of commercial operations expected in 2028.
Henrik Wareborn, Velocys CEO, said: “The progress and partnerships outlined in this business update reflect the significant achievements made in 2022 and Velocys’ position of strength in a rapidly evolving global market for advanced synthetic fuels technology.”
*This is not investment advice.
Velocys share price.
The Velocys share price rose 6.26% to trade at 4.702p, from Wednesday’s closing price of 4.425p.
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