Changing the way fuels are made
October 2013
Letter from the editor
Roy Lipski, CEO

I am pleased to confirm that the Company's unification under a single name, Velocys, proceeded as planned on the 25th September. Our immediate goal remains unchanged; to make smaller scale gas-to-liquids (GTL) a commercial reality. Toward this aim, we have recently announced some significant progress: Velocys technology was selected for a fourth commercial-scale project, this time in the state of Ohio, USA, which is particularly convenient given its proximity to our Plain City facility. We opened a new office in Houston, the heart of the global oil and gas industry, in order to be closer to our customers and partners. We have also signed agreements with partners Tecnoil and PTT as well as relaunching the Velocys brand with a bold and pioneering new look.

Do get in touch if you would like to discuss any of the items highlighted in this newsletter in more detail.

What's new?

2,800 bpd US gas-to-liquids plant
On 23 September, Pinto Energy announced the selection of Velocys Fischer-Tropsch (FT) technology for a 2,800 barrel per day (bpd) GTL plant in Ashtabula, Ohio, USA. The facility, which is proposed for an 80-acre industrial site in the Port of Ashtabula on the shores of Lake Erie, will convert abundant low-cost natural gas from the Utica and Marcellus shale region into high value specialty products (solvents, lubricants and waxes), as well as ultra clean transportation fuels. Pinto has applied for the air and water permits and is working towards issuing the final notice to proceed in the first half of 2014. Read more…

Opening of Houston office
In October, Velocys opened a new office in Houston, Texas, USA, which will become the Company's commercial and engineering centre. CEO, Roy Lipski, has relocated to Houston to personally lead the initiative to integrate Velocys with the global oil and gas industry, and to further support the Company's growing opportunities pipeline. Velocys is actively recruiting process engineers, business development and marketing personnel to staff the new office. The development of the process engineering team at a location closer to some of the Company's engineering partners and customers will further accelerate the engineering work to sell and deliver plants using Velocys technology. Read more…

PTT – 100 bpd integrated GTL facility
Velocys and PTT, the national energy company of Thailand, who have been collaborating since 2009, have signed an agreement to further develop the commercial deployment of the Company's GTL technology in Thailand and other regions. PTT has now commissioned Toyo Engineering Corporation to prepare a detailed front end engineering design (FEED) for a 100 bpd GTL plant that will incorporate the Company's steam methane reforming and FT technologies. Read more…

Company name change to Velocys plc
On 25 September, Oxford Catalysts Group PLC began trading as Velocys plc. The Company continues to trade on the Alternative Investment Market (AIM) of the London Stock Exchange, but under a new ticker symbol, VLS (previously OCG). This change marks the final stage of integration of Oxford Catalysts and Velocys, which came together in 2008. Questions…?

Brazil business development initiative
Velocys has signed an agency agreement with Tecnoil Comércio e Representações Ltda. ("Tecnoil"). Tecnoil, one of the leading agencies for energy and infrastructure in Brazil and Latin America, will support the development of projects using Velocys technology to serve Brazil's rapidly growing oil and gas industry. Read more…

Interim results
Board Chairman of Velocys, Pierre Jungles noted that, "market conditions remain favourable, our pipeline of opportunities is healthy and our technology continues to be selected for projects ahead of competitors," in his introduction to the interim results for the period ending 30 June 2013.  Interim results…

On the conference circuit

Roy Lipski, CEO, represented Velocys at a panel discussion "Natural gas, LNG, GTL: North America's opportunity", at Oil Council's North America Assembly, Houston, Texas, 22-23 October. His introductory presentation can be viewed here.

Paul Schubert, Chief Operating Officer, presented "Smaller scale GTL an economic solution for distributed gas" at the inaugural GTL Technology Forum in Houston, 30-31 July.

Jeff McDaniel, Commercial Director, presented "Gas-to-liquids on-board an FPSO: a solution to gas flaring" at the 3rd Annual Emerging FPSO Forum held in Galveston, Texas, 24-26 September.

Jeff McDaniel also presented "Velocys Fischer-Tropsch synthesis technology: new advances in state of the art" at Energy Frontiers International's 2013 Gas-to-Market & Energy Conversion Forum, which was held in San Francisco, 8-11 October.

Jeff McDaniel completed a hectic month by presenting "Smaller scale FT enables biomass-to-liquids" at the Gasification Technologies Council meeting in Colorado Springs, USA, 13-16 October.

Neville Hargreaves, Business Development Director, presented "Smaller scale GTL – an economic solution for distributed gas" at the 5th International Gas Technology Conference in Moscow, 16-17 September. View the presentation in English or in Russian.

Coming soon:
Members of the team will be presenting at the following conferences over the coming weeks and months:
In the press

The announcement of the selection of Velocys FT technology for Pinto Energy's GTL project received good coverage particularly in the US. There was reporting in Oil & Gas Journal, Green Car Congress, Columbus Business First, The Columbus Dispatch, Downstream Today and OilVoice Magazine, amongst others.

Natural Gas Daily wrote an interesting article "Cheap shale gas sparks interest in GTL" comparing the Velocys smaller scale GTL model to world-scale strategies employed by companies like Shell.

The Company's name change was covered by publications including; OilBarrel, Gas World, FEInvestEgate, Guardian, The Independent, Money AM and Shares Magazine. Many publications, e.g. the Guardian "connected the dots" and mentioned the Pinto project, the associated Velocys share price increase and the Company name change in the same article.

In addition, Julie Fisher from Interactive Investor interviewed CEO Roy Lipski about Velocys' prospects.

Company news

In October, we welcomed Ivan Greager, Engineering Manager, to the Velocys team. Ivan will initially be based in our UK office and will set up a processing engineering team in the UK, supporting our business development efforts in the eastern hemisphere. He brings considerable experience from Sasol's Oryx GTL plant in Qatar.

Contact us for further information

General enquiries:
Technical press enquiries:
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Velocys plc trades through its subsidiaries Velocys Technologies Ltd, 115e Olympic Avenue, Milton Park, Abingdon, OX14 4SA, UK (Registered in England No. 5258554) and Velocys, Inc., 7950 Corporate Blvd, Plain City, Ohio 43064, USA (Registered in the State of Delaware, USA)