Changing the way fuels are made
January 2014
I am greatly encouraged that we are at a tipping point for recognition of the industry that Velocys has been pioneering the distributed production of fuels and chemicals. Language that Ive been using for years that our technology is revolutionary is being mirrored back to me by well-respected sources, including Wall Street analysts, Bernstein Research. In their note published late last year, the authors talk about the small-scale GTL opportunity [being] vast and [the technology, if adopted] could be a game-changer for the energy industry.

Contrast these thoughts with Shells decision not to pursue its 140,000 barrel per day Gulf Coast gas-to-liquids (GTL) project. My take on this decision, which was a tough call for Shell, is that it exposes the complexity of planning mega-scale conventional GTL projects, with their extremely long lead times and huge demands on capex and human resources. It validates our belief that the economics and flexibility of smaller scale GTL are better suited to current business realities. 

We at Velocys look to 2014 with excitement and positive anticipation. Our pipeline of opportunities continues to grow, and we are making progress through the engineering work on multiple projects with customers who share a determination to bring them to fruition quickly.

Do get in touch if you would like to discuss any of the items highlighted in this newsletter in more detail.  Alternatively, please visit our company representatives at the upcoming GasTech and World Bio Markets exhibitions in March.

Roy Lipski, CEO

What's new?

Commercial reactor sale
On 6 January, Velocys announced that it had executed an agreement for the sale of a commercial Fischer-Tropsch (FT) reactor to a customer in the Commonwealth of Independent States (CIS). The 175 bpd reactor will be installed in a small GTL plant and will be delivered in the second half of 2014. Read more...

Velocys CFO recognised as one of the TMT sectors Hot 20 FDs
In December, Susan Robertson, Velocys CFO, was recognised as one of the UKs top 20 Finance Directors in the Technology, Media and Telecommunications (TMT) sector. A panel of judges chose Susan in recognition of her achievements in the last 12 months, which included her contributions to the 30.6m (~$49m) share placing at the beginning of 2013 and the rebranding of the Company in September 2013 with its name change from Oxford Catalysts Group to Velocys. Read more...
On the conference circuit

Heinz Robota, Director of Catalysis, presented Fischer-Tropsch synthesis in a microchannel reactor: the influence of Co/SiO2 catalyst structure on FTS performance at the International Petroleum Technology Conference in Doha, Qatar, 19-22 January.

Sandy Shaw, Non-Executive Director, represented the Company in a panel discussion: Current Commercial Issues for O&G Companies at the Oil Council Legal Assembly in London, 21 January.

Roy Lipski presented "An update on Velocys" at the Zeus Capital Conference on New Energy Technologies in London, 15 November.

Jeff McDaniel, Commercial Director, presented "Smaller scale GTL: projects, partnerships and opportunities" at SMi Gas-to-Liquids, in London, 29 October.

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

Our company representatives will be delighted to see you at our exhibition stands at GasTech (Stand M180) and World Bio Markets (Stand F205).

In the press

In November, Wall Street analysts Bernstein raised the profile of smaller scale GTL by publishing a research note posing the question What if small-scale gas to liquids was the next shale gas? Are we on the verge of another energy revolution?  This has received coverage in e.g. Midstream Business and Gasification News.  Velocys brokers, Numis Securities, included Velocys in their 10 analyst top picks for 2014 (see, for example, coverage in CityWire Money).

Recent announcements by Velocys were covered in e.g. the Houston Business Journal (the opening of the Houston office) and Proactive Investors (the sale of a commercial FT reactor in print and as a podcast).  A number of publications covered Velocys response to the news that Shell was not going to proceed with their mega-scale GTL plant on the Gulf Coast; Gasification News reported Velocys: smaller scale GTL more practical than Shells cancelled scheme.

Roy Lipski was interviewed by CNBC Squawk Box in November and participated in CNBCs Global Energy Debate in December. Other debate participants included The Right Honourable Gregory Barker MP, Minister of State for Energy & Climate Change and Dr Christoph Frei, Secretary General of the World Energy Council.

Roy Lipski and Susan Robertson were the subject of profile pieces in Real Business and Economia (the magazine of The Institute of Chartered Accountants in England) respectively, the latter reporting on her recognition as one of the UK TMT sectors Hot 20 FDs.

Velocys also received noteworthy coverage in Natural Gas Daily, MEED, and Platts Gas Daily. Business Development Director, Neville Hargreaves, was interviewed by Proactive Investors at the Oil Councils World Assembly.
Company news

In November, we welcomed Niraj Thapar, Senior Process Engineer, to the Velocys team. Niraj is based in our UK office, supporting our business development efforts in the eastern hemisphere. We also welcomed Brenda Muncie, Contracts Specialist to our Plain City office. Brenda will support Laura Silva, our IP, Legal and Licensing Director, in setting up and negotiating contracts and confidential disclosure agreements with prospects, clients and suppliers. We are continuing to recruit at all three of our locations.
Contact us for further information

General enquiries:
Technical press enquiries:
Forward this newsletter
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)