Velocys plc (VLS.L), the renewable fuels company, notes the recent share price movement and we would like to update the investors of the following ongoing positive actions your Company is currently undertaking:
The Company continues to drive forward and make strong progress with its Bayou Fuels biorefinery project in Mississippi. Discussions are progressing with a shortlist of strategic investors to invest in the project to fund the development costs to financial investment decision (FID). The team are working extremely hard to ensure a positive outcome to this process and we will update the market once agreements are in place.
Velocys continues to work with the ENVIA Board, which is developing several promising options to preserve the value inherent in the facility. In addition, constructive conversations are continuing with the insurers, where ENVIA anticipates a resolution in the near future.
Recent media analysis continues to highlight the growing global demand for the high quality renewable fuels that we can make, and in particular there is increasing demand from airlines and existing jet fuel producers. We are very pleased to have British Airways and Shell as partners in our UK waste to jet fuel project and we continue to make solid progress in taking this exciting project forward.
As of the end of September, the Company had cash resources in excess of £10 million. As a result of the decision by the ENVIA Board to suspend operations, the Company has substantially reduced its monthly cash burn rate by circa £0.5 million and our projects remain on budget.
The Board is confident in the future of the Company and we look forward to updating the market with news on numerous fronts over the coming weeks and months.
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