This page contains answers to some frequently asked questions from our investors.
A significant number of third party project opportunities are not in the public domain and so we can not disclose details of these. However, it is important to note that some of these projects are at an advanced stage of development.
Since the end of 2014, both Shell and Sasol have cancelled or postponed plans to develop mega-scale GTL plants on the Gulf Coast. By their very nature conventional GTL plants are constrained to the major hubs. Smaller scale GTL is fundamentally different: it takes the plant to the opportunity. There remain many opportunities for smaller scale GTL - situations where local feedstock or product prices lead to significantly higher margins than mainstream gas-oil arbitrage opportunities would have.
Yes, some are. Many local situations are likely to retain their attractiveness, even with lower gas-oil differentials at the major hubs. These projects either utilise economically-priced gas or other low-cost (or negative-cost) feedstocks, or serve a market where a premium can be realised, for example, by producing high-value speciality products such as base oils or waxes, or by serving isolated areas where liquid fuel import costs are very high. The GTL market is not indifferent to oil price but is less dependent upon it at smaller scale. A GTL plant with Velocys technology is expected to last more than 20 years, so the key question for customers should be "is my project economic over that lifetime, based on market forecasts?"
Our technology delivers high conversion efficiency and high yield of high value products. Particularly in today's oil price environment, project owners and developers need to select the technology that will allow them to achieve the best possible economic returns from their plant. The advantages that Velocys technology can bring to project developers were discussed recently by Paul Schubert, the Company's Chief Operating Officer. >> More
Velocys frequently receives feedback from respected individuals in the industry that the Company is regarded as the market leader in smaller scale GTL. As such, members of the Velocys team were asked, for example, to present keynote speeches at three GTL-specific conferences in 2015, and continue to be asked to contribute by-lined articles to trade publications. The development of an innovative process technology such as ours is a costly, resource-intensive and time-consuming exercise. Velocys' ability to complete this process is now being fully demonstrated. Our investment in development and our exhaustive, proven patent protection now represent a significant barrier to entry for competitors.
Shares in Velocys are are sold through a registered broker. Details of all brokers offering share-dealing services can be obtained from the London Stock Exchange. Please telephone the LSE on +44 (0)20 7797 1000 or visit their website.
Shares in Velocys are sold through a registered broker. Please contact your broker for further details.
Clearly there were in 2015 a number of factors that could have affected the price, including most obviously the fall in oil prices which has affected the whole oil and gas sector, as well as related companies such as Velocys with interests in projects whose product is linked to oil. However, Velocys technology can also be used to make speciality products like waxes whose price is much less volatile. The past year has been one of behind-the-scenes delivery for Velocys, specifically in relation to our commercial reference plant in Oklahoma City, which is currently being commissioned, and which will be a significant catalyst for the business on its completion, reinforcing our foundations and ensuring future success.