April 2015

The fanfares have sounded; now we are confidently on the march. 2014 was a news-rich year, with many announcements keeping Velocys in the headlines. 2015 is different; it's all about delivery of our commercial reference plant currently under construction in Oklahoma City, which is nothing short of a huge transformational event for the Company. For Velocys, this year is about meeting deadlines for the manufacture of reactors and catalyst, completing the documentation of commercial operating protocols backed by successful pilot plant operation, meeting all quality assurance requirements, further building our commissioning team and strengthening our partnerships; all so that we're in a very strong position when our first plant starts up early in 2016. This year is a year of hard grafting by our growing technical and project development teams – a "backstage" year that may not attract so many headlines, but through its many small yet significant steps it is reinforcing our foundations and ensuring the many successes to come.

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?

Financial results for the year ended 31 December 2014

In the financial results for 2014 that were announced on 28 April, Pierre Jungels commented, "Velocys enters 2015 with a very strong balance sheet and in the exciting position of having its first commercial reference plant under construction, which promises to be a significant catalyst for business when complete. Although volatility in the markets may cause a degree of hesitancy in the short term, companies with longer term outlook are already planning for higher oil prices or restored margins. The market for smaller scale GTL remains compelling and there are exciting opportunities ahead for Velocys. I look forward with confidence to seeing our first commercial plant in operation." Read more…

On the conference circuit

In the last quarter, members of the business development team presented at; SMi's GTL Conference in Houston, the Kazakhstan Oil & Gas Summit in Almaty, Kazakhstan and at the 6th International Gas Technology Conference in Dubai. Their presentations can be viewed here (in English as well as in Russian where appropriate).

Soumitra Deshmukh, Development Engineer, presented "Commercializing Velocys Fischer-Tropsch synthesis technology" at the Syngas Convention in Cape Town, South Africa.

Coming soon:

Members of our business development and technical teams are expected to present at the following conferences over the coming months:

In the press

Roy Lipski was recently interviewed to camera by CNBC Squawk Box and by Investors Chronicle. Viewers can see our UK laboratories in use as part of the interview by Investors Chronicle.

Articles were published in Nefte Compass - the Russian-focused English publication owned by Energy Intelligence and by GasTech News after interviews with Neville Hargreaves, Business Development Director. Another Russian-focused publication - Oil and Gas Vertical, published a by-lined article (in Russian) written by Michael Pruchnie, our Business Development Manager for Russia and the Caspian region.

Downstream Business reported on continued progress at the Velocys Ashtabula GTL project in Ohio, USA. Elsewhere, as we predicted, low oil prices are disproportionately impacting large GTL prospects that can't be placed in the most advantaged locations.

In its coverage of "The AIM100", Investors Chronicle reported that Velocys "is a technological leader in a largely untapped area of the global energy market". Additionally, Malcolm Graham-Wood published his "bucket list", which identifies a group of companies, including Velocys, that whilst badly hit by the fall in crude price should weather the storm and, over the longer term, reward investors.

Red Rock Biofuels, who have selected Velocys technology for their biomass-to-liquids project under development in Oregon, USA, received press coverage following the announcement of a strategic alliance with and investment by Flagship Ventures (see, for example, Biofuels Digest).

Over the coming weeks expect to see publicity regarding the ground-breaking ceremony for the joint venture Oklahoma City plant.

Company news

In March, Dr Robert Freerks was appointed as our Synthetic Products Manager. Bob brings to the company 18 years' experience at Chevron where he developed fuels and lubricants formulations and a further 15 years' with Syntroleum, Rentech and Emerging Fuels Technology working on Fischer-Tropsch products. He worked with the US Departments of Defense and Environment as well as the ASTM to certify synthetic paraffinic kerosene (SPK) as a jet fuel for military and commercial use.

Think Smaller™. Velocys is changing the way fuels are made.

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Velocys plc trades through its subsidiaries Velocys, Inc., 7950 Corporate Blvd, Plain City, Ohio 43064, USA (Registered in the State of Delaware, USA) and Velocys Technologies Ltd, 115e Olympic Avenue, Milton Park, Abingdon, OX14 4SA, UK (Registered in England No. 5258554). "Velocys", "Think Smaller" and the Velocys logo are trademarks of Velocys. © 2015 Velocys. All Rights Reserved.