Sustainable fuels technology company Velocys has extended its agreements with British Airways over plans for a green jet fuel refinery on the South Humber Bank.
The Oxford University spin-out and the national flag carrier have signed up to further the joint development proposal for the £350 million consented Altalto Immingham project, as well as an option agreement for BA to buy 50 per cent of it.
It is a second extension involving the Stallingborough site as key policy moves on sustainable aviation fuel are awaited, having originally signed in May 2020, extending in March 2021.
Read more: Green jet fuel legislation expectations set out by Velocys for UK and US governments
The agreements come as Velocys also enters into a contract with a European renewable fuels developer to provide initial engineering services.
It is not disclosing the identity of the company, but the step is described as one that “broadens the company's customer base and demonstrates the ability to progress its pipeline of potential global customers towards commercial contracts”.
BA has just started receiving sustainable aviation fuel from nearby Phillips 66 Humber Refinery, having originally got on board with Velocys alongside Shell, who pulled out in January last year, opting to develop on its own in Germany.
Executives have described it as 'a great opportunity for the Humber' as it builds on existing refining expertise and the infrastructure being brought forward to help decarbonise heavy industry.
