- Alternative fuels group Velocys said it was continuing to hold discussions with a shortlist of investors that may participate in its Bayou Fuels biorefinery in Mississippi.

The company issued the update while noting the recent performance of its shares, which have weakened significantly this year.

'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 said.

Velocys also said it was continuing to work with Envia, which had previously decided to suspend operations at the plant. Evnia was was developing several 'promising options to preserve the value inherent in the facility', it said.

At the end of September, the company had cash resources in excess of £10m.

As a result of the decision by the Eniva board to suspend operations, the company said it had substantially reduced its monthly cash burn rate by around £0.5m.

'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,' Velocys said.

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