Shares in renewable fuels company, Velocys, jumped 40 per cent on Tuesday after it announced a partnership with British Airways to create jet fuel from waste.
Velocys plans to take hundreds of thousands of tonnes of post-recycled waste, destined for landfill, and convert it into clean-burning, sustainable fuels. The jet fuel produced is expected to deliver a more than 60 per cent greenhouse gas reduction and 90 per cent reduction in particulate matter emissions compared with conventional jet fuel.
The company said on Tuesday it would lead an initial feasibility stage of the project with the aim of a final investment decision in 2019. If the plans are successful, BA planes will fly using the fuel.
Also included in the partnership is recycling and waste management company, Suez, which will provide technical expertise and manage the supply of feedstock from which the fuel will be made.
Velocys believes that there is the opportunity to develop a series of waste-to-jet fuel plants in the UK.
Jet fuel is to qualify for credits under the Renewable Transport Fuels Obligation (RTFO) after changes recently published by the Department for Transport.
These changes to the RTFO are designed to promote sustainable aviation and heavy goods transport; once implemented, they are expected to provide long term policy support for this market.
David Pummell, chief executive of Velocys, said the changes will allow the UK to become a world leader in sustainable jet fuel.
“We are very pleased to be working with world class partners to help execute the vision of a repeatable series of plants, offering a commercially attractive route to a highly desirable product for an industry that now demands significant greenhouse gas reduction solutions, Mr Pummell said.
This opportunity leverages further our technology, integrated plant design and skills base, and is consistent with our renewable fuels strategy of delivering integrated plant solutions, in collaboration with partners, to fulfil a real market need.”
Join our new commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies