Velocys PLC Oklahoma City plant on track for final capacity (9016U)
October 30 2017 - 2:00AM
UK Regulatory
TIDMVLS
RNS Number : 9016U
Velocys PLC
30 October 2017
News release
Velocys plc
("Velocys" or "the Company")
30 October 2017
Oklahoma City plant on track to reach final capacity
Velocys plc (VLS.L), the renewable fuels company, is pleased to
announce that production at ENVIA Energy's Oklahoma City
gas-to-liquids plant has reached an operational capacity of 200
barrels per day (bpd), passing a key capacity milestone.
The plant will continue ramping up to its target operational
capacity of 250 bpd. Finished, saleable products (premium renewable
waxes, diesel and naphtha) are meeting customer product
specifications and sales are being made to product offtakers.
In order to meet this milestone and support continued
operations, Velocys has extended the loan arrangement it has made
available to ENVIA by $0.7m to $13.4m. All other terms of the loan,
which has a 10% coupon, remain unchanged.
Meeting this milestone enables the reversal, at the 2017 year
end results, of the impairment of the loan facility as stated
recently in the Company's interim results and once the plant is
generating positive cash flows will ensure the servicing of the
Velocys loan. Implicit to this achievement is that ENVIA has met
the operational requirements for the long term land lease.
David Pummell, CEO of Velocys, said:
"We are pleased that ENVIA's Oklahoma City plant has reached the
capacity milestone of 200 bpd. We have confidence that the talented
on-site team will continue to deliver the plant improvements needed
to achieve further increases in output. ENVIA's customers' tankers
now arrive regularly on site and load product from the plant. The
aim is now to optimise operations to maximise production and plant
availability going forward, whilst always assuring safety and
minimising the risk of impact to the environment.
"At ENVIA we have successfully demonstrated that our
Fischer-Tropsch reactor and catalyst are performing in line with
performance requirements at a commercial scale. The Velocys
technology being used in Oklahoma City will be deployed in the
biorefineries we and our partners are developing, significantly
reducing technology risk and improving the likelihood of success at
those plants."
- Ends -
For further information, please contact:
Velocys +44 1235 838
David Pummell, CEO 621
Numis Securities (Nomad and joint
broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite +44 20 7260
Tom Ballard 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O'Connor +44 20 7523
Ben Griffiths 8000
Camarco (Financial communications
& PR)
Billy Clegg +44 20 3757
Georgia Edmonds 4983
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) prior to its release as part of this
announcement.
www.velocys.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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