Ownership of the two Velocys FT reactors returns to Velocys on conclusion of the technology demonstration run at the ENVIA site in Oklahoma City.
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Velocys plc (VLS.L), announces it has executed an agreement with ENVIA Energy, LLC which officially completes the return of ownership of the two Velocys FT reactors to Velocys from ENVIA upon the conclusion of this new technology demonstration run at the ENVIA site in Oklahoma City which was completed last year.
The return of the catalyst and reactors to Velocys was intended under the terms of the original site license agreement with ENVIA. The two reactors were transferred to the Velocys Plain City, Ohio facility late last year for catalyst discharge. An initial review of the reactors concluded both reactors have met expected performance and durability measures throughout the allowed operating envelope.
Henrik Wareborn, CEO of Velocys, said:
“The Velocys FT reactors produced more than 1.6 million litres of fuels and waxes over the course of this new technology demonstration at ENVIA. We are pleased that our post-decommissioning review of the units further shows they performed as designed not only on start-up, but also over a significant period of time.
These two reactors and the associated performance data and learnings from ENVIA will be very valuable for Velocys and our project partners as we proceed with the development of our two commercial scale biorefineries in Immingham, UK and Natchez, MS.”
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For further information, please contact:
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Ben Woodford
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
ENVIA Energy has agreed with insurers to settle all claims and disputes related to the incident at the ENVIA plant.
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Velocys plc (VLS.L), announces that ENVIA Energy, LLC has executed an agreement with Liberty Surplus Insurance Corporation and Zurich American Insurance Corporation to settle all claims and disputes related to the incident at the ENVIA plant announced on 15 May, 2018. The settlement amount totals $2.3 million and has already largely been paid to ENVIA with the final payment of $330,000 due to ENVIA on 25 March 2019. The agreement also removes any potential for current or future liability on part of ENVIA or Velocys.
In addition to its minority equity stake and secured lending to the ENVIA project, Velocys has been the technology licensor to ENVIA for the central processing unit (2 micro-channel FT reactors) which was designed to convert landfill gas to liquid fuels and which has been operational at the Oklahoma site during the last two years. Velocys believes that the objectives of this demonstration plant have now been met. This will allow Velocys to focus its resources on developing its commercial waste to jet fuel plants in the US and the UK as well as supporting its licensee in Oregon.
Henrik Wareborn, CEO of Velocys, said:
“We are pleased that ENVIA has reached this positive agreement with respect to the insurance settlement.
“The ENVIA demonstration plant has provided Velocys with an invaluable experience and track record, and creates a good platform for the company to move forward. It now allows us to focus our efforts on progressing with the development of our Bayou Fuels biorefinery project in Mississippi and our Altalto Immingham UK waste-to-jet-fuel project in the UK, working with our strategic partners to produce commercial scale volumes of renewable fuels.”
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For further information, please contact:
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Velocys has agreed a series of amendments in its licensing contracts with Red Rock Biofuels.
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Velocys plc (VLS.L), announces it has agreed a series of amendments in its licensing contracts with Red Rock Biofuels LLC (RRB), regarding RRB’s license of Velocys Fischer-Tropsch reactors and proprietary catalyst for the RRB biorefinery under construction in Lakeview, Oregon, USA. The amendments are at RRB’s request and allow it to complete the biorefinery on their desired timeline.
The amended agreement will see Velocys accelerate delivery of the first of four reactors and first four charges of catalyst. It will also reduce the firm commitment for reactors from six to four but RRB will retain an option to acquire reactors 5 and 6 until the end of 2020, for delivery at the existing contract price. These changes have a positive impact on Velocys’ near-term cash flow of an estimated $1.1 million and a decrease in revenue of nearly $3 million (out of a total contract value of approximately $15 million). Should RRB exercise its option to purchase the two additional reactors the total contract value will return to approximately $15 million. RRB remains committed to purchase a total of six charges of catalyst in 2019.
Henrik Wareborn, CEO of Velocys, said:
“We collaborated with RRB to re-optimise the original agreement to help them complete the biorefinery on their desired timeline. This is an opportunity for us to demonstrate our commitment to delivering for our client the central processing unit in their biorefinery that will convert woody biomass to renewable jet fuel and diesel in Oregon.”
Velocys
Henrik Wareborn, CEO
+ 44 1235 838621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (Velocys US public relations)
John Williams
+1 206 625 0075 #1
Velocys has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.
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Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that it has secured a site for the UK waste-to-jet-fuel project which it is developing in collaboration with British Airways and Shell.
The site of approximately 80 acres, near Immingham, North East Lincolnshire, is in an Enterprise Zone and earmarked for industrial development within the Local Plan. Development is subject to planning consent; the formal planning application process is expected to begin in 2019.
Altalto Immingham Ltd, a subsidiary of Velocys, has entered into an option agreement which gives it the right, but not the obligation, to acquire Rula Developments (Immingham) Limited, the company which owns the site, for up to three years. The project team is developing the engineering and business case for the project, and the project is also subject to funding and a final investment decision, which would include a decision to proceed with the acquisition of the Immingham site. In the event that the Company in consultation with its partners decides not to proceed with the purchase, the liabilities incurred as a result of the agreement are not material to Velocys.
For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Velocys is pleased to announce the appointment of Henrik Wareborn as Chief Executive Officer and Executive Director. Andrew Morris has been appointed as Velocys’ full time Chief Financial Officer.
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Velocys plc (VLS.L), the renewable fuels company, is pleased to announce the appointment of Henrik Wareborn as Chief Executive Officer and Executive Director with immediate effect. Henrik has been acting as a consulting adviser to the Company and provided services equivalent to those of a Chief Commercial Officer since March 2017. In addition, Andrew Morris, Non-executive Director and Chairman of the Company’s Audit and Risk Committee since June 2017, has been appointed as Velocys’ full time Chief Financial Officer and will remain on the Board as an Executive Director.
Velocys is in the process of introducing strategic investors to finance the front end engineering and design (FEED) process of both the Bayou Fuels biorefinery project in Mississippi and the UK non-recyclable waste to jet fuel project. Henrik Wareborn has been leading this process with potential strategic investors for the Bayou Fuels project. Data has been provided on a confidential basis to a number of potential strategic investors and discussions are ongoing.
Henrik was formerly a Managing Director with Natixis S.A. (both in the UK and North America), and previously Global Head of Crude Oil Sales and Trading at BP PLC. His experience prior to this included roles as Executive Director at Hess Energy Trading Ltd, and Executive Director at Goldman Sachs International, London. His expertise includes investment banking, commodities trading, fund raising, and commodity finance.
The Board considers that Henrik’s skill set and experience, together with the aptitude and commitment he has demonstrated over his time at Velocys mean that he is an excellent fit for CEO of the Company and that his knowledge, background and approach is exactly what is demanded now as Velocys moves to the next stage in discussions with interested investors.
Andrew Morris has considerable experience in the power and renewable energy, energy from waste and biofuels sectors, and has significant involvement in financing and business development for AIM companies, SMEs and private equity backed organisations. Andrew’s appointment as Velocys’ Chief Financial Officer will assist the Board significantly in managing the Company’s finances.
Following the decision by the ENVIA Board in September 2018 to suspend operations, and the consequent reduction in Velocys’ monthly cash burn rate, the focus of the new management is to concentrate on the two renewable fuel projects, the delivery of reactors to the Red Rock Biofuels project and on the cash management of the Company, including any recoveries from ENVIA.
In addition, the Board is engaging in the process of appointing two new Non-executive Directors in order to provide further expert support to the new team of Executive Directors. We look forward to making further announcements in due course.
David Pummell is standing down as Chief Executive Officer of the Company with immediate effect and Dr. Paul Schubert has also stood down as Chief Operating Officer.
Pierre Jungels, CBE, Chairman of Velocys, said:
“The Board is delighted to welcome Henrik as Velocys’ new CEO to lead the Company through the planned financing and further development of both the Bayou Fuels biorefinery project in Mississippi and the UK non-recyclable waste to jet fuel project.
“The Board is also delighted Andrew will be moving into an Executive role as Chief Financial Officer. His extensive experience as Chairman, CEO, CFO and Group Finance Director of AIM companies will bring much needed expertise in an executive capacity.
”Henrik’s and Andrew’s appointments enhance and complement the Company’s strong and established senior management team and we all look forward to working with them going forward.”
There is no information that is required to be disclosed with regards to the appointment of Henrik Sven Gunnar Wareborn, aged 55, pursuant to Schedule 2 paragraph (g) of the AIM Rules, save as set out below:
Current directorships and partnerships
Marine Energy Limited
Dick Helander AB
Directorships and partnerships held within the past five years
N/A
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For further information, please contact:
Velocys
Henrik Wareborn, CEO
+44 1235 838 621
Numis Securities (Nomad and joint broker)
Alex Ham
Stuart Skinner
Jamie Lillywhite
Tom Ballard
+44 20 7260 1000
Canaccord Genuity (Joint broker)
Henry Fitzgerald-O’Connor
Ben Griffiths
+44 20 7523 8000
Camarco (UK financial communications & PR)
Billy Clegg
Georgia Edmonds
Tom Huddart
+44 20 3757 4983
Scoville Public Relations (US public relations)
John Williams
+1 206 625 0075 #1
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.