tjusa02
6 years ago
News 4 May 2018 Velocys sells license to Red Rock Biofuels.
Velocys has received a “notice to proceed” action to commence the manufacturing of its reactors and catalyst for Red Rock Biofuels’ biorefinery.
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Velocys receives first $6 million as part of “notice to proceed” action
Velocys plc (VLS.L), the renewable fuels company, has received a “notice to proceed” action to commence manufacturing of the Fischer-Tropsch reactors and catalyst for the Red Rock Biofuels LLC (“RRB”) biorefinery that will be located in Lakeview, Oregon, USA. RRB has commenced construction of the biorefinery, which will incorporate Velocys’ technology, and produce low-carbon, renewable diesel and jet fuel. Velocys’ role will be as a licensor for its technology to the project.
RRB is a subsidiary of IR1 Group LLC, which has 325 million gallons of installed biofuels capacity. The biorefinery in Lakeview will convert forestry residue into 15 million gallons per year of renewable transportation fuels including diesel and jet fuel. Enough jet fuel will be produced by the plant to fuel 1,800 round trips per year from Portland, Oregon to San Francisco. RRB has in place contracts from several airlines to purchase 100 percent of the jet fuel produced each year.
RRB’s Lakeview project is expected to deliver around $15 million revenues to Velocys during the construction and early operation stages of the plant, and an additional $30 million or more over the life of the biorefinery. Over $6 million has already been invoiced and received from RRB.
With broad international agreement in the aviation industry for carbon-free growth beyond 2020, airlines are actively seeking low-carbon jet fuel to reduce their greenhouse gas emissions. The civil aviation industry alone will require around 1.5 billion gallons per year of new renewable jet fuel production capacity to meet this commitment.
Velocys’ technology, be it via licensed third party projects like RRB’s biorefinery, or through Velocys’ own projects such as the Natchez, Mississippi project, will supply the aviation and road haulage industries with a scalable, sustainable supply of fuel.
By using forest and sawmill residues, RRB’s biorefinery will not only avoid competition for agricultural resources, but also reduce the risk of catastrophic wildfires by removing waste biomass from overgrown forests. It will also help to regenerate the local forestry industry.
David Pummell, CEO of Velocys, said:
“This is a very important milestone for Velocys, our second commercial license sold; our first licence being ENVIA. Our technology positions us at the forefront of this huge market opportunity. RRB’s success is a significant milestone for the sector, one that further demonstrates the market’s appetite for renewable transportation fuels. The successful funding of this project is a validation of the commercial viability and bankability of Velocys’ technology. The licensing of our technology to RRB is complementary to our strategy to develop our own biorefineries, the first of which will be located in Natchez, Mississippi.”
– Ends –
For further information, please contact:
Velocys
David Pummell, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 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.
Web | Twitter
About IR1 Group
IR1 Group provides biofuels industry clients with complete project development, engineering, procurement, construction and operations services.
IR1 Group personnel have successfully constructed and operated eight biofuel plants covering three distinct process designs over the last 18 years and managed a $25 million retrofit on a fourth biofuel process technology. In total, IR1 plants represent more than $650 million of construction and 325 million gallons of installed capacity.
IR1 is developing next generation biofuels projects and is currently serving as the lead developer of a next-gen biofuels project in Oregon. We bring a core set of project development disciplines to guide projects through feasibility, development, finance, design & engineering, procurement, construction and operations. IR1 also works with private equity groups, banks, insurers, producers and others to evaluate and repair facilities, estimate capital costs for reconstruction, and provide specific expert advisory services.
Link to PR: https://www.velocys.com/red-rock-biofuels-may2018/
tjusa02
6 years ago
News 15 Mar 2018 ENVIA biorefinery – RINs verified
RINs produced at ENVIA’s plant have been verified and a RIN purchase and sale agreement has been signed.
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Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that the RINs (Renewable Identification Numbers) produced at ENVIA Energy’s Oklahoma City plant have been verified by Weaver, an independent third party auditor, under the Quality Assurance Program (QAP) approved by the US Environmental Protection Agency. Subject to the plant running within the required efficiency range it is expected to continue to produce verified RINs (Q-RINs).
Highlights:
RINs produced at ENVIA to date now have Q-RIN status.
Six month RIN purchase and sale agreement signed covering all available Q-RINs produced.
ENVIA expected to generate around 100,000 D7 RINs per month under the approved pathway.
This represents a commercial validation of Velocys’ technology and supports the Company’s strategy to build a biorefinery in Natchez, Mississippi.
ENVIA Energy has signed a RIN purchase and sale agreement with TransMontaigne Product Services, LLC (a wholly-owned subsidiary of NGL Energy Partners), which will purchase, at a fixed price, all of the available RINs generated at the plant for a six-month term beginning in April. The agreement has industry standard payment terms. A significant contribution of the revenues of the plant could be derived from the ongoing sale of RINs.
Based on 2017 D7 RIN values, the possible revenue from RINs attributable to ENVIA’s mixed feedstock fuel was equivalent to $2.4/gallon or above throughout 2017.
Under the Renewable Fuel Standard (RFS), the Renewable Volume Obligation for Cellulosic Biofuels is 288 million gallons, yet the supply of D7 RINs is limited. Only 400,000 D7 RINs have ever been generated within the US. ENVIA is expected to generate around 100,000 D7 RINs per month under the approved pathway.
In contrast, Velocys’ future Mississippi biorefinery is being designed to generate over 20 million gallons of fuel and is expected to generate over 30 million D3/D7 RINs per year. For diesel produced exclusively from renewable feedstock, such as planned at the Mississippi biorefinery, D7 RINs traded above $4/gallon throughout 2017.
David Pummell, CEO of Velocys, said:
“This is a significant landmark for ENVIA and represents a further validation step for Velocys’ strategy to build biorefineries that convert woody biomass to renewable fuels. ENVIA demonstrates that we have the capability to produce verified RINs that will enable Velocys to unlock the attractive US renewable fuels market and, in time, grow a material supply position.
“This milestone is also important to our ongoing Mississippi biorefinery project, being one of the key requirements that will support building a consortium of strategic investment partners into the project.”
– Ends –
For further information, please contact:
Velocys
David Pummell, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (financial communications & PR)
Billy Clegg
Georgia Edmonds
+44 20 3757 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.
About the Renewable Fuel Standard and Renewable Identification Numbers
In the US, the Renewable Fuel Standard (RFS) was enacted by Congress in 2005 under the Energy Policy Act (and enhanced in 2007 under the Energy Independence and Security Act) to move the United States towards greater energy independence and to increase the production of clean renewable fuels. Under the status quo, the programme continues indefinitely, with no legislative sunset, providing a long-term market and incentive for biofuel production. In 2016 over 18 bn gallons of renewable fuels were produced or imported into the USA that qualified under the RFS.
Under the RFS, Renewable Identification Numbers (RINs) are credits used to track compliance for obligated parties (oil companies who produce or import gasoline and diesel fuel), and are the “currency” of the programme. Yearly volume requirements (Renewable Volume Obligations, RVOs) are set for the obligated parties. Renewable fuel producers generate RINs, market participants trade the RINs and obligated parties either produce their own RINs or purchase RINs and then ultimately retire RINs for compliance, supplying the biofuel into the wider fuel pool for on-highway use. RINs therefore carry a monetary value and act as a market-based incentive.
The fuels produced at Velocys’ Mississippi biorefinery are expected to qualify as cellulosic biofuel under the RFS, for which the highest level of greenhouse gas reductions must be demonstrated. An indicative value of these RINs is currently around $4½ – $5 per gallon.
tjusa02
6 years ago
SpeedRead News Letter February 2018
With our fund raise of £18.4 million we have made a strong start to the New Year. Net proceeds will be predominately used to help fund the development of our Mississippi biorefinery, for which we are targeting final investment decision by the middle of 2019. The firm placing was strongly supported by our existing major shareholders – who I would like to thank for their ongoing support – as well as by some significant new shareholders, who we welcome to our shareholder register. We were pleased to include an open offer element as part of the fund raise, which allows all eligible shareholders to participate on the same terms, as set by the market.
In the last few months Velocys has met a number of important milestones. ENVIA’s Oklahoma City plant reached a key operational capacity of 200 barrels per day in October and has since submitted RINs for qualification under the Renewable Fuel Standard. We announced the location of the site of our first biorefinery in the US that will use forestry residues as feedstock. The FEL-2 engineering study for this Mississippi biorefinery has been completed and we have agreed term sheets with several potential offtakers.
We will, no doubt, have many challenges to overcome before we reach FID, but I am confident that we have the team, the technology, the dedication and desire to reach this objective on our journey to build a material position in this attractive market and in turn create significant shareholder value.
Please get in touch if you would like more information on any of the items highlighted in this newsletter.
David Pummell, CEO
____________________________________________________________
What's new?
Fund raise of approximately £18.4 million
On 15 January 2018 Velocys reported it intended to raise approximately £14 million by way of a firm placing and £4.4 million by way of a placing and open offer. Net proceeds will be used predominantly towards funding initial development costs in respect of the Company's Mississippi biorefinery. It is also expected to include a contribution to progress the next stage of the UK waste-to-jet fuel project as well as to fund the Company’s working capital and central operating costs. Read more… Presentation... Webcast… All resolutions put to shareholders were passed at the General Meeting held on 31 January 2018, and the new ordinary shares were admitted to the market on 1 February.
Site confirmed for first US biorefinery
On 20 October 2017 the Company announced that its first US biorefinery would be located in Natchez, Mississippi. The Company has been offered economic development incentives estimated to be worth up to $60 million to locate at this advantaged site. Velocys is maintaining its list of other attractive sites in the region. Read more…
Oklahoma City plant on track to reach final capacity
ENVIA Energy’s gas-to-liquids plant reached a key operational milestone at the end of October 2017, when it reached a capacity of 200 barrels per day. 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. Read more…
Oklahoma City plant – RIN credit submission
On 16 January 2018 the Company announced that ENVIA believes that fuel produced at its Oklahoma City plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard. Subject to confirmation of the pathway compliance it is expected that all necessary processes to trade the generated D7 RINs for maximum value will be completed in Q1 2018. Read more…
Interim results for the six months ended 30 June 2017
The interim results for 2017 were posted on 29 September 2017. CEO David Pummell commented, “As Velocys the Renewable Fuels Company, we have made considerable progress in our strategy implementation and subsequent restructuring of the business over the first part of the year. Successive operational milestones have been reached at ENVIA Oklahoma and we have made steady progress towards developing our first biorefinery in the US.” Read more…
On the conference circuit
Philipp Stratmann, Vice President, Biofuels, presented at the Advanced Bioeconomy Leadership Conference on Next Generation Technologies (ABLC Next) in San Francisco in October. His talk was reported by Biofuels Digest. Brian Cody, Supply Chain Development Manager, presented at the Gasification and Syngas Technologies Conference in Colorado Springs in the same month.
Looking ahead, David Pummell, CEO will be presenting at the Advanced Bioeconomy Leadership Conference (ABLC) in Washington DC, which starts at the end of February 2018. Neville Hargreaves, Director Capital Projects UK, has been invited to present a talk on the UK waste-to-jet fuel opportunity at World Bio Markets, to be held in Amsterdam, 20-22 March.
In the press
In an Investors Chronicle “Boardroom Talk” podcast, resources writer Alex Newman asked David Pummell why he thinks the tide has turned for Velocys, and what investors can expect in the coming years.
News of the partnership formed including British Airways to address the opportunity for waste to renewable jet fuel plants in the UK continues to be reported, for example in Airport World, Aerospace Technology, Recycling and Waste World and Airport Technology.
The selection of Natchez, Mississippi as the location of the Company’s first US biorefinery using forestry waste as feedstock was covered extensively in the national, trade and biofuels press as well as by the local press in Mississippi – see for example in The Natchez Democrat, Biofuels International and The First Natchez Radio Group.
David Pummell recorded BRR webcasts on both the Natchez site selection and ENVIA Energy’s Oklahoma City plant reaching a capacity of 200 barrels per day. That news was covered by, for example, Alliance News and Sharecast. News of ENVIA’s RIN credit submission as well as the fund raise was reported by, for example, Biomass Magazine.
From a wider industry perspective, Bloomberg Businessweek commented on how forestry practices (such as those that will be used to produce forestry residues that will act as feedstock for Velocys’ Mississippi plant) benefit forestry health, wildfire prevention and a forest’s ability to act as a carbon sink. Elsewhere Shell became one of the latest companies to pledge to decrease greenhouse gas emissions from its activities. Shell’s new climate change target aims to cut the net carbon footprint of its products in half by 2050, and around one-fifth by 2035.
Contact us for further information
General enquiries: info@velocys.com
Press enquiries: press@velocys.com
Careers: careers@velocys.com
Link to New Letter: http://www.velocys.com/press/newsletter/speedread25.htm
tjusa02
6 years ago
News - 16 Jan 2018 - Oklahoma City plant – RIN credit submission
ENVIA Energy believes that fuel produced at its Oklahoma City plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard in the US
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Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that ENVIA Energy believes that fuel produced at its Oklahoma City gas-to-liquids plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard (RFS) in the US. As a result, the facility has submitted a certain number of RIN (Renewable Identification Number) credits to the US Environmental Protection Agency’s (EPA) registration system.
The process used at ENVIA makes a drop-in fuel that is made from renewable biogas and pipeline natural gas. Such a process is approved by the EPA for the highest value RINs under the RFS as it delivers the most significant greenhouse gas reductions called for under the programme. Throughout 2017 the type of RIN (D7) that would be produced at ENVIA, based on its specific feedstock mix, traded above $2.4/gallon. For a fuel produced exclusively from renewable feedstock, such as at the biorefinery Velocys is developing in Mississippi, this equates to RIN values above $4/gallon throughout 2017.
Subject to confirmation of the pathway compliance it is expected that all necessary processes to trade the generated D7 RIN credits for maximum value will be completed in Q1 2018. A significant contribution of the revenues of the plant could be derived from the ongoing sale of these RINs.
David Pummell, CEO of Velocys, said:
“This is a major achievement and milestone for both ENVIA and Velocys. On confirmation of the pathway compliance, these will be the first RIN credits generated by our technology and also the first associated with a Fischer-Tropsch process on landfill gas. This in itself represents a significant commercial validation of our technology.
“The US renewable fuels market is a high value growth market with incentives at both Federal and State levels in the form of tradeable fuel and carbon credits. Today’s news demonstrates that Velocys has the capability to secure renewable fuel incentives that will enable Velocys to unlock the attractive renewable fuels market.”
– Ends –
For further information, please contact:
Velocys
David Pummell, CEO
+44 1235 838 621
Camarco (financial communications & PR)
Billy Clegg
Georgia Edmonds
+44 20 3757 4983
Link to Article: http://www.velocys.com/oklahoma-city-plant-rin-credit-submission/
tjusa02
7 years ago
News - 30 Oct 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.”
http://www.velocys.com/envia-oct-2017/
tjusa02
7 years ago
News - 20 Oct 2017 - Site confirmed for first U.S. biorefinery
Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that it has signed a site option agreement with Adams County in the State of Mississippi for its first U.S. biorefinery to be located in Natchez, Mississippi.
Velocys has been offered economic development incentives from Adams County estimated to be worth the equivalent of $42 million. The project expects to qualify for additional incentives worth up to $15 million, provided via Mississippi’s Advantage Jobs Act and other statutory tax incentives. These incentive packages would reduce the company’s future tax liabilities and are subject to Velocys meeting certain minimum requirements for capital investment and local employment opportunities.
Velocys has also received commitments from Adams County worth approximately $4 million (relating to the land and upgrades to the site) and $1 million site upgrade commitments from local utility suppliers, further increasing the attractiveness of the site.
The site and local area benefits from:
•an attractive regulatory and tax regime;
•the availability of an abundant local supply of low cost forestry residue that will form the feedstock of the plant;
•advantaged transportation infrastructure including barge, rail and road;
•accessible utilities;
•land that meets all the required criteria including space and terrain to support an industrial development;
•a local workforce skilled in servicing the forestry industry; and,
•a local community with facilities and amenities that will attract additional skilled personnel during construction and ongoing plant operations.
The 100-acre Natchez site was confirmed after the Company analysed a broad set of operational and tax considerations at twelve possible sites in four States in the Southeast United States. Due diligence, including site visits, was completed at each of these sites and incentive offers were received from each State in question.
The analysis lays the foundation for future biorefineries: Velocys is maintaining its list of other advantaged sites in the region, which could host plants with capacities totalling 100 million gallons over the next 10 years. Velocys remains in close contact with the economic development officials in these other States regarding the locations and timing of future renewable fuels facilities.
This announcement completes one of the work packages required for the U.S. Department of Agriculture (USDA) loan guarantee application announced in June 2017. Site permitting activities have now begun for the Natchez site.
David Pummell, CEO of Velocys, said:
“This is an important step towards the development of our first biorefinery in the U.S. to address the attractive and growing renewable fuels market. We welcome the significant support for this plant at the local level, including the future financial support that further enhances plant economics. Velocys and its partners are continuing to make significant progress towards completing other work packages needed to deliver a successful USDA loan guarantee application, which we are targeting in 2018. We look forward to updating our stakeholders on the progress of this transformational project in Mississippi.”
Billy Klauser, Chief Economic Development Officer of the Mississippi Development Authority, said:
“The Mississippi Development Authority wishes Velocys continued success in their new venture in Natchez and Adams County. With its strategic location and close proximity to a major waterway, Natchez was a natural fit for this proposed capital investment of several hundred million dollars.”
Mike Lazarus, President of the Adams County Board of Supervisors, said:
“We are pleased to have Velocys join our growing industrial family. These quality jobs, significant investment and purchases of area forestry products will have a huge and meaningful impact on our area and local economy.”
-Ends-
http://www.velocys.com/biorefinery-site-confirmed/
tjusa02
7 years ago
News 18 Sep 2017 Partnership formed, aimed at waste-to-jet-fuel plants in UK
Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that it has entered into a partnership to prepare the business case for a commercial scale waste-to-renewable-jet-fuel plant in the UK. Velocys will lead this initial feasibility stage of the project, for which all members of the partnership are providing funding. Subject to this and to the successful completion of all development stages, the aim is to achieve a final investment decision in 2019.
The members of the partnership include:
•British Airways, the UK’s largest international airline, which intends to fly with the jet fuel made in the plant;
•Suez, a world leading expert in recycling and waste management, which intends to provide technical and operational expertise and manage the supply of feedstock to the project;
•Norma, an affiliate of Ervington Investments, Velocys’ largest investor, which is a potential investor in the project;
•Velocys, which intends to supply its technology to the plant and provide project management, engineering, operations and technical service support to the project going forward.
The plant would take hundreds of thousands of tonnes per year of post-recycled waste, destined for landfill or incineration, and convert it into clean-burning, sustainable fuels. The jet fuel produced is expected to deliver over 60% greenhouse gas reduction and 90% reduction in particulate matter emissions compared with conventional jet fuel, thereby contributing to both carbon emissions reductions and local air quality improvements around major airports.
Velocys believes that there is the opportunity to develop a series of waste-to-jet fuel plants in the UK. The changes to the Renewable Transport Fuels Obligation (RTFO) recently published by the Department for Transport provide the required commercial platform for this opportunity; for the first time, jet fuel is to qualify for credits under the RTFO. 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.
The Company and its partners anticipate making further announcements concerning the project as it progresses.
David Pummell, CEO of Velocys, said:
“Our strategy remains highly focused on exploiting the large US market for cellulosic renewable fuels. Alongside the excellent progress we are making there, we believe that the recently announced RTFO 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. 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.”
British Airways’ press release on the partnership can be found at mediacentre.britishairways.com/.
tjusa02
7 years ago
News release - 21st July 2017 - Business update
Velocys plc (VLS.L), the renewable fuels company, provides the following business update.
With the production of saleable products at ENVIA Energy's GTL plant in Oklahoma City, Velocys has successfully demonstrated that its Fischer-Tropsch (FT) reactors and catalyst meet the performance requirements at a commercial scale. The Company is now actively transitioning from its previous focus on technology development, to the commercialisation of its technology in selected high value markets.
On delivering a commercially robust FT product offering, the Company has now successfully completed the current phase of its development programme. As a consequence it has decided that its Milton Park, UK research and development activities will close and certain related activities will cease at its Plain City facility in Ohio. The Company will continue to maintain an ongoing commercial and operational office in the UK. The above developments will reduce the operational costs of the business on an annualised basis.
Velocys will continue to grow its operational base in Houston, Texas and build the capabilities required to take forward its new biorefinery delivery business model with its strategic partners.
tjusa02
7 years ago
News release - 21st July 2017 - Directorate change
Velocys plc (VLS.L), the renewable fuels company, announces that after nine years with the Company, Susan Robertson has informed the Board of her intention to leave Velocys to pursue other interests. Susan has stepped down from her position on the Board effective immediately.
The Company intends that going forward the role of Chief Financial Officer will be based in Houston, Texas, as its focus on the renewable fuels market in the US intensifies. Velocys has appointed John Tunison as interim CFO, who will provide the necessary support to the Company through a period of transition while it recruits a permanent CFO. The appointment is not a Board level appointment at this stage. Susan will remain in her role as CFO in the immediate term to help provide an orderly and smooth handover.
John Tunison is an experienced interim CFO with nearly 15 years' experience working in finance leadership roles with Shell, Univar and Ascend Performance Materials amongst others. He has a track record in business planning, strategy development and execution, the reshaping of financial teams and the raising of equity in his varied roles in a number of sectors including oil and gas and speciality chemicals.
» Further details regarding John's skills and experience can be found here.
Pierre Jungels, Chairman said:
"On behalf of my fellow Board directors and all of my colleagues at Velocys, I would like to thank Susan for the enormous contribution she has made to the Company over the nine years she has been on the Board. During her tenure Velocys has grown from small beginnings to the business it is today with the first commercial smaller scale GTL plant in the world now in operation."
David Pummell, CEO said:
"I would like to thank Susan for all the help and support she has given me in my time as CEO of Velocys and wish her every success in her future career. I and the Board look forward to working with John in the months ahead as we drive forward our new strategy."
tjusa02
7 years ago
Annual general meeting (AGM) statement
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is hosting its AGM today at 10.45am. At the AGM, David Pummell, CEO will make the following comments:
"2016 was a busy year of change for Velocys. We invested significant effort into the commissioning and start-up of ENVIA Oklahoma, we identified our new growth strategy and have made considerable progress with its implementation. Internally we have driven greater simplicity and focus on what we do and we believe we have created the required platform to deliver future shareholder value.
"Fischer-Tropsch (FT) product is being produced at ENVIA and we are pleased that the operational data from the FT units meet the set performance requirements at commercial scale. We are expecting production of first saleable product shortly and ENVIA will continue to ramp up production to full capacity over the coming months.
"Our new strategy is for Velocys to be at the heart of building plants that convert woody biomass to high specification renewable diesel and jet fuel for the US market, our primary focus market. We have a world class, proven technology and highly skilled operations and engineering teams that, with our partners, will successfully design, build, commission and start up these commercial plants. Our route to the production of renewable fuels from woody biomass uses cost effective, abundant and entirely sustainable feedstock, allowing our solution to be highly scalable to meet the increased demand for renewable fuels. All of this contributes to our differentiated value proposition to the market.
"We believe our business model will enable Velocys, with its strategic partners, to build a supply leadership position in this market over the next 10 years, by delivering economically differentiated, financed, operations ready plants, and do it reliably again and again.
"The US renewable fuels market is a high value market with substantial potential for volume growth, now, and for many years to come. The estimated consumption of renewable diesel in California in 2016 was around 300 million gallons. By 2030 around 1 billion gallons of the total diesel supply would need to come from renewable diesel to meet State obligations. Increasing pressure from public opinion and legislation to curb greenhouse gas emissions and reduce pollution drives this market. This has led to long term structural incentives for renewable fuels in the form of fuel credits at both federal and state level, greatly enhancing the revenues from a Velocys plant. Successful delivery of the Velocys strategy will result in the construction of multiple plants, to meet this fundamental need to replace fossil fuels.
"There is strong momentum within the business. On the engineering front we have engaged IHI E&C to carry out the pre-FEED engineering study for our first biomass-to-liquids (BTL) plant and this remains on track. We have selected TRI as our strategic partner for gasification technology and we are now in the process of selecting other licensed technologies. We recently announced that the US Department of Agriculture (USDA) has invited Velocys to participate in Phase 2 of its loan guarantee programme for up to $200 million of debt for our first BTL plant. Securing this commitment would financially de-risk plant 1 and create an attractive platform to secure the required additional equity from investors. A key requirement for the USDA qualification is the successful completion of a joint demonstration of our FT technology combined with TRI's gasification technology; our FT system is now on site at TRI's facility in North Carolina where the demonstration will take place. We have engaged the global leading project finance bank, Sumitomo Mitsui Banking Corporation (SMBC) as the lender of record and financial advisor. SMBC will lead the syndication of the debt funding portion in 2018. All these carefully planned initiatives have the aim of securing project equity funding and reaching final investment decision during the course of 2018.
"The Company is transforming - moving away from being 'a FT technology company' to being Velocys, 'the renewable fuels company'. The time is now right for Velocys to take forward a bold growth strategy and I am confident that we are the right company, with the right technology, at the right time to enter this attractive market and deliver sustainable growth. In five years' time I want Velocys to be known as the company that delivers renewable fuels plants to its customers, cost effectively and at low risk. Much work still needs to be done to successfully deliver our strategy but we continue to work towards our goal with confidence and in a focused and professional way."
For further information, please contact:
Velocys
David Pummell, CEO
Susan Robertson, CFO
+44 1235 841 700
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint brokers)
Henry Fitzgerald-O'Connor
Ben Griffiths
+44 20 7523 8000
Camarco (financial communications & PR)
Billy Clegg
Georgia Edmonds
+44 20 3757 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.
Notes
About Velocys
Velocys is the company at the forefront of smaller scale gas-to-liquids (GTL), providing the bridge connecting stranded and low value feedstocks such as natural gas, landfill gas or biomass with markets for premium products such as renewable diesel, jet fuel and waxes.
With its partners, Velocys aims to deliver the most economically compelling conversion solution; a fully integrated offer that can be deployed at scale into the growing, attractive markets on which it focuses. Velocys technology, protected by several hundred patents in over 30 countries, is specifically designed for smaller scales, combining super-active catalysts with intensified reactor systems. Standardised modular plants can be deployed readily in a wide range of locations, and Velocys' capabilities and extensive experience deliver a proven route to operation.
Velocys plc is admitted to trading on the AIM market of the London Stock Exchange (LSE: VLS). The Company has a strong, multi-disciplinary staff operating from its commercial centre in Houston, Texas, USA and technical facilities near Oxford, UK and Columbus, Ohio, USA. First product has been produced at its commercial reference plant, which is located adjacent to Waste Management's East Oak landfill site in Oklahoma City.
MufasaBreath
7 years ago
Advancing towards U.S. Dept. of Agriculture Loan Guarantee
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids and biomass-to-liquids (BTL), is pleased to announce that the U.S. Department of Agriculture (USDA) has invited Velocys to submit a Phase II Application to obtain a loan guarantee for a commercial-scale biorefinery. This invitation was made after a successful Phase I Application process. The loan guarantee could apply to up to $200 million of debt as part of the total installed cost of the project.
The plant is being designed to produce approximately 19 million gallons per year (1,400 barrels per day) of renewable diesel fuel from approximately 1,000 dry tons per day of woody biomass residues in the Southeast U.S. There is an abundant supply of low-cost feedstock sourced from this region that will provide a long term strategic supply of biomass to the plant.
The USDA 9003 Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (9003 Program) enhances the economy of rural America by providing loan guarantees to biorefineries, such as those that Velocys and its partners are developing, which produce advanced biofuels. Under this program, a material portion of the project debt is guaranteed by the USDA, accelerating the timeline and financially de-risking the project to final investment decision (FID). Velocys has engaged the global leading project finance bank, Sumitomo Mitsui Banking Corporation (SMBC), as the lender of record and as its financial advisor.
The Company will now initiate the final phase of the loan guarantee process. The steps required under this process identify and mitigate risk and complete evaluation of the project. These steps match the typical development stages for biorefineries. Work is already underway on Velocys' integrated technology demonstration with its strategic gasification partner ThermoChem Recovery International (TRI), and the Front End Loading (FEL-2) study with IHI E&C, an internationally-recognized Engineering, Procurement and Construction (EPC) company.
Velocys has the goal of completing all work packages required by the USDA 9003 Program, concluding commercial negotiations such as feedstock supply and offtake agreements, securing project equity funding, and reaching FID during the course of 2018.
David Pummell, CEO of Velocys, said:
"We have made strong progress in accelerating the implementation of the first stage of our strategy as we start to deploy the additional funds raised in May. Today's announcement builds on the deployment of our technology at ENVIA Energy's plant in Oklahoma City; technology that will be used in our first biorefinery. As well as the first plant, Velocys has identified other locations in the Southeast U.S. that could host plants with capacities totalling 100 million gallons over the next 10 years.
"This announcement represents an important step in the ongoing development of the integrated plant offer that we and our partners are developing for the renewable fuels market. We remain on track to secure a conditional commitment from the USDA and this would financially de-risk our first BTL project, creating an attractive financeable solution for project investors in what we intend to be the first of many repeatable plants."
tjusa02
7 years ago
The definitive agreement with Morimatsu has been signed.
http://velocys.com/press/nr/nr170303.php
News release
3rd March 2017
Confirmation of strategic alliance with Morimatsu
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce that it has signed a definitive agreement covering its strategic alliance with Morimatsu (Jiangsu) Heavy Industry Co., Ltd., a subsidiary of Morimatsu Industry Co., Ltd. (Morimatsu). This agreement confirms the previously announced Memorandum of Understanding between Velocys and Morimatsu; Morimatsu will be Velocys' preferred supplier of modular design, engineering and fabrication services supporting the Velocys offer of delivering fully integrated, fully financed, cost effective and operations-ready plants to its customers.
Velocys and Morimatsu are now extensively working together with Velocys' other alliance partners, to further reduce the costs, optimise engineering designs, accelerate pace and reduce overall risk, for delivering multiple GTL and biomass-to-liquids (BTL) plants to its chosen markets.
tjusa02
8 years ago
ENVIA Plant Update:
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to provide an update to investors. Construction of the ENVIA Energy GTL plant in Oklahoma City, which will act as the commercial reference plant for Velocys' technology, is progressing well. All modular process units, including those incorporating the Velocys reactors, and all other major packaged equipment skids, including the steam methane reformer, cooling towers, landfill gas inlet and syngas compression units have been set in place on site. System integration, piping and electrical work is ongoing; 140-150 personnel are currently working on-site. Photographs of progress on-site are available here.
As previously announced, following the additional equity and debt funding Velocys made available to ENVIA Energy earlier in the year, the Company gained a greater influence in the commissioning, start-up and operations of the plant. Since then, Velocys has been further-engaged to provide an operability review, commissioning planning, operating manuals and training for the project. In this role, Velocys will be supporting the EPC contractor, Ventech, in leading the commissioning and start-up of the plant.
A secondment agreement has been signed by ENVIA and Velocys for a team of experienced Velocys operators and engineers to be on-site serving under the ENVIA Plant Manager during commissioning and start-up until the end of 2016. The Velocys commissioning team has commenced its deployment to the Oklahoma City site.
The Velocys subcontract with Ventech for operations, commissioning and start-up planning and execution and the secondment agreement with ENVIA will generate a total of over $0.7 million of revenue for the Company in the current financial year.
The Company continues to progress the opportunities in its commercial pipeline as outlined in the recent Annual Report. For example, Red Rock Biofuels, which is developing a biomass-to-liquids plant using forestry waste as feedstock in Lakeview, Oregon, USA, continues to make progress on permitting, financing and offtake agreements. All of the jet fuel that will be produced by the plant has been contracted to Southwest Airlines and FedEx.
Additionally, Velocys has completed its part of the engineering study underway for a project being developed by a national gas company in Central Asia that is seeking to develop its stranded gas reserves. Elsewhere, the opportunity with a major fuels player in the US remains active. Progress continues to be made by the third-party project developer, and the air permit for the plant has recently been issued.
In the first half of 2016, the Company carried out further analysis of the wax market in North America, which confirmed that the projected plant economics remain attractive for Ashtabula GTL, the 5,000 barrel per day plant that Velocys has been developing in Ohio, focused on the production of waxes and other speciality products. Given the challenges in raising equity for capital projects of this nature at present and in order to defer costs, Velocys has put its development of Ashtabula on hold, pending reassessment as part of the broad review of the strategy of the business that the Company is currently undertaking.
David Pummell, CEO of Velocys, said:
"The ENVIA plant is the key focus of the team, and excellent progress is being made. Our increased stake and operational role is proving very positive for Velocys and its partners; I am pleased with the team's dedication and expertise and with the progress the plant is making. On other fronts, multiple opportunities are progressing towards firm orders. I look forward to updating shareholders on the ongoing review of strategy and future developments in due course."
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