Changing the way fuels are made

April 2014
The market has responded favourably to the recent announcement of our Joint Venture with Waste Management, NRG Energy and Ventech to develop multiple GTL plants. This is the first time that Fortune 500 scale companies have committed to smaller scale GTL and it is, I believe, the beginning of an accelerated growth phase for this industry.

Forbes Magazine headlined "Small gas-to-liquids plants get a huge boost" saying this announcement "is a very big step in the maturation of the small-scale GTL industry, and it is a very big vote of confidence in the technology". Similarly, London-based Edison Investment Research described the deal as "more than just another milestone for Velocys" and that "the JV announcement is an example of the deep pipeline of opportunities previously noted by Velocys". I hope you share with me the enthusiasm expressed by these commentators about the future of our industry and of Velocys.

Please get in touch if you would like more information on any of the items highlighted in this newsletter. Email…

Roy Lipski, CEO

What's new?

GTL joint venture
On 24 March, a joint venture between Waste Management, NRG Energy, Ventech and Velocys was announced that will develop multiple plants utilising a combination of renewable biogas (including landfill gas) and natural gas. As its first commercial facility, the JV is developing a plant at Waste Management's East Oak landfill site in Oklahoma, USA. Read more…

GreenSky London site selection
Thames Enterprise Park, part of the site of the former Coryton oil refinery in Thurrock, Essex, UK was announced on 16 April as the site for the GreenSky London waste to jet fuel project being developed by Solena Fuels in partnership with British Airways. The initial engineering design is now complete and Barclays, as financial advisor, continues to support the project. GreenSky London will incorporate Velocys Fischer-Tropsch (FT) technology. Read more…

Manufacturing partnership and new share purchase
Velocys and Shiloh have been working together since 2012 to develop and implement high quality, cost competitive mass-manufacturing capabilities for the Company's FT reactors, based on state-of-the-art manufacturing technology and quality systems from the automotive industry. On 11 March, the Company announced that Shiloh had purchased shares in Velocys and that the two companies had agreed to preferentially work together on continued improvements. Read more…

Financial results for the year ended 31 December 2013
In the financial results for 2013 that were announced on 27 March, Pierre Jungels commented, "2013 was a strong year for Velocys. Our leadership position in smaller scale GTL is firmly established and market opportunities continue to advance. We enter 2014 confident and ready for commercial success." Read more…
On the conference circuit

Roy Lipski presented "Smaller scale GTL; prospects, partnerships and opportunities" at SMi Gas to Liquids North America in Houston, Texas, 12 March.

Neville Hargreaves, Director of Business Development, presented "Smaller scale FT enables biomass-to-liquids" at World Bio Markets in Amsterdam, the Netherlands, 5 March and "Smaller scale GTL - effective gas monetisation" at Gastech in Seoul, South Korea, 27 March.

Michael Pruchnie, Business Development Manager for Russia and the Caspian Region, presented at GTL & CTL Technologies 2014 in Moscow, Russia, 27 March. 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 Joint Venture with Waste Management, NRG Energy and Ventech received widespread coverage in the UK national, UK financial, US regional, oil and gas trade and biofuels press including, Forbes, Houston Business Journal, Oilbarrel, Downstream Business, The Telegraph, Green Car Congress, Hydrocarbon Processing, Chemical Processing and Chemical Engineering. The announcement of the JV has received coverage in over 100 press articles to date.

From the financial community, Trendwatch issued an extensive and positive article on Velocys including a buy recommendation on 5 February. Directly after the JV announcement stockbroking and investment management company Charles Stanley reported that the JV was the "breakthrough for Velocys that the market has been waiting for", as well as reiterating its "buy" rating and raising its price target to 250p (which was covered in, for example, American Banking & Market News). Edison Investment Research also circulated a positive note entitled "Velocys: Moving up the value chain" following the JV announcement.

Oilbarrel interviewed Roy Lipski for its article "Poweralternatives: Velocys ready to play its part in the 'Age of Gas revolution'" that details how Velocys is positioning itself to play a part in the decentralisation of industry that is set to be a theme worldwide for the next 30-50 years. An opinion piece entitled "Made in the USA" by Roy Lipski, outlining his views on the place that smaller scale GTL will have in the resurgence of the US manufacturing sector, was published in Cryogas International.

Neville Hargreaves, Business Development Director was interviewed by: Nature regarding the trend towards smaller, modular units for biomass-to-liquids; Visiongain's "Gas to liquids (GTL) market forecast 2014-2024" (view excerpt), as well as for a World Bio Markets podcast. Velocys received other significant coverage in Midstream BusinessGastech Daily News (day 2 page 16) and Shares Magazine's article "How to play the gas game".

The GreenSky site selection announcement by British Airways and Solena Fuels received widespread coverage in the UK nationals, including The Times. Willie Walsh, chief executive of British Airways' parent company IAG, was interviewed by, for example, The Today Programme on BBC Radio 4, and on the UK's Channel 4 News. The involvement of Velocys in the project was highlighted by Bloomberg, Hydrocarbon Processing, Green Car Congress and Biofuels Journal amongst many others.

The announcement of the manufacturing partnership with Shiloh was covered, amongst others, by the Wall Street Journal, The Guardian, The Telegraph, Chemical Week, Green Car Congress, GasWorld, Energy Global, CleanTech Investor and Chemical Processing.
Company news

In February, we welcomed Michael Williams, Vice President, Strategy & Marketing to the Velocys team. Michael is based in Houston and will head the Company's marketing and strategic business development initiatives and was formerly Americas Team Lead for Market Development & Strategy in Shell's Gas Monetization businesses. Justina Zvireblyte, based in the UK, joined Velocys as a Commercial Associate, providing support for the marketing and business development teams. We also welcomed Hannah Christian, Executive Assistant to Roy Lipski. Hannah is also providing administrative support for our growing team in Houston.

In the last two months Jasmeer Ramlal, Bhanu Kiran Sunkara, Harshitha Pantham, and Sibongile Manthata have all joined our rapidly expanding Process Engineering Team.

We are continuing to hire new employees at all three of our locations. 
Contact us for further information

General 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)