2017 has already proved to be a big year for Velocys. We and our partners recently reached the major milestone of making first Fischer-Tropsch product at ENVIA's Oklahoma City GTL plant. This is a landmark for the industry; truly an event based on the culmination of many years of brilliant work, conquered challenges and sheer determination. I am very proud of our commissioning team who have taken forward the last phase of this endeavour in a safe and professional manner during a challenging period of exceptionally cold weather. We have formidable teams, both on site and in support, that have demonstrated the ability to just get things done, which I'm sure they will continue to do as the plant ramps up to full production.
Following the strategy review completed last year, I am confident that we now have the right approach that will deliver material opportunities leading to a substantive growth business. A core theme of Velocys' new strategy is to deliver, jointly with partners, a "one-stop-shop" offer to its customers - a fully integrated and financed, cost effective and operations-ready plant solution. My commercial and technology teams now implementing the strategy in the areas of renewable diesel and jet fuels, stranded and associated gas monetisation are making significant progress in defining market entry plans and engaging potential strategic partners. This programme of work will continue to gather momentum as 2017 proceeds.
We've had a good reception to the announcement of our new strategy and stakeholders have commended the early implementation momentum demonstrated by two new partnerships and full commercial demonstration of our technology. Our plan will lay tangible commercial and technology foundations in 2017 to underpin delivery of a number of new plants in the next few years. I'm delighted we have formed strategic partnerships with Morimatsu and TRI.
I look forward to providing further details of the strategic alliances that will underpin our strategy as we roll them out.
Please get in touch if you would like more information on any of the items highlighted in this newsletter. Email...
David Pummell, CEO
First product achieved at ENVIA
On 6 February Velocys announced that ENVIA Energy's GTL plant in Oklahoma City plant had achieved first Fischer-Tropsch product. The on-site operations team will now focus on ramping up production to full capacity and preparing for the performance test run on the plant. Read more…
Video of ENVIA Energy's Oklahoma City GTL plant
A video about the Company's involvement in ENVIA's first project and the significance of the project to Velocys has been released. The video was filmed prior to the plant's start up and includes interviews with personnel representing Velocys and ENVIA Energy. Video…
Bird's eye view of the Oklahoma City plant taken during the production of the video
Strategy update: "building the business"
On 13 December Velocys announced the results of its review of the company's strategy. The new strategy will build on Velocys' involvement at ENVIA and its leadership position, adopting a business model to increase control over project delivery through a partnership approach and focussing on the most attractive markets. Read more… Presentation… Webcast…
Establishment of a strategic alliance with Morimatsu
On 17 January Velocys announced that it had formed a strategic alliance with Morimatsu, a Japanese fabrication and engineering firm. The partnership will drive down costs for GTL and biomass-to-liquids (BTL) plants based on Velocys technology by optimising the design and fabrication of plant modules. Read more… Webcast…
Strategic alliance with TRI
Also in January, Velocys formed a strategic alliance with TRI, a leading provider of steam reforming gasification technology. The partnership will develop an integrated biorefinery solution to address the renewable fuels market. The partners have already started the joint development of an engineering design for a 1,400 barrel per day BTL plant and are planning an integrated demonstration plant at TRI's facility in North Carolina. Read more… Webcast…
On the conference circuit
The US EIA's Today in Energy published an article on completion of construction at ENVIA, while Shares Magazine wrote an article entitled "Why Velocys has nearly trebled in less than six months" following the announcement that first product has been made at the plant.
Following the announcement of the results of the review of Velocys' strategy city analysts Canaccord Genuity, Numis and Macquarie wrote analyst notes. Shares Magazine, Alliance News, Biomass Magazine and Proactive Investors, amongst other publications, wrote articles summarising the announcement.
The announcement of Morimatsu as Velocys' strategic partner was covered by, for example, Shares Magazine, Proactive Investors and Hydrocarbon Engineering. Later in the month, Proactive Investors, Interactive Investor and others, commented on the news of the alliance with TRI and the resulting share price rise.
The Times published an article after interviewing David Pummell regarding increasing the use of renewable jet fuel in the UK and the part Fischer-Tropsch fuels derived from waste could play in easing the pain of Heathrow's expansion.
As reported in Biofuels International, in November the UK's Department for Transport published a consultation paper on the future of renewable transportation fuels. The Department proposes to provide double rewards under the RTFO (the Renewable Transport Fuel Obligations Order) to incentivise the production of renewable fuels made from wastes. These 'development' fuels will include fuels of strategic importance to the UK, including aviation fuel, and fuels that can be blended at high levels with standard grade diesel.Velocys fully welcomes the intent of the proposals, which should benefit the economics of and long-term policy support for waste-to-liquids plants in the UK incorporating its technology. The company has submitted a response to the consultation suggesting improvements to the DfT's proposals.
Contact us for further information
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" and the Velocys logo are trademarks of Velocys. © 2017 Velocys. All Rights Reserved.