Velocys confirms full production at ENVIA Oklahoma City
Velocys plc
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15:09 16/01/24
Renewable fuels company Velocys has announced that production at ENVIA Energy's Oklahoma City gas-to-liquids plant has reached an operational capacity of 200 barrels per day, passing a “key” capacity milestone.
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17:14 31/05/24
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The AIM-traded firm said the plant would continue ramping up to its target operational capacity of 250 bpd.
Finished, saleable products, including “premium” renewable waxes, diesel and naphtha, were said to be meeting customer product specifications with sales are being made to product offtakers.
In order to meet that milestone and support continued operations, Velocys said it extended the loan arrangement it has made available to ENVIA by $0.7m to $13.4m.
All other terms of the loan, which has a 10% coupon, remain unchanged.
The board added that meeting the milestone enabled the reversal at the 2017 year end results of the impairment of the loan facility as stated recently in the company's interim results, and once the plant was generating positive cash flows, would ensure the servicing of the Velocys loan.
Implicit to that achievement was that ENVIA has met the operational requirements for the long term land lease.
“We are pleased that ENVIA's Oklahoma City plant has reached the capacity milestone of 200 bpd,” said Velocys CEO David Pummell.
“We have confidence that the talented on-site team will continue to deliver the plant improvements needed to achieve further increases in output.”
Pummell said ENVIA's customers' tankers now arrived “regularly” on site and load product from the plant, with the aim now to optimise operations to maximise production and plant availability going forward, while assuring safety and minimising the risk of impact to the environment.
“At ENVIA we have successfully demonstrated that our Fischer-Tropsch reactor and catalyst are performing in line with performance requirements at a commercial scale.
“The Velocys technology being used in Oklahoma City will be deployed in the biorefineries we and our partners are developing, significantly reducing technology risk and improving the likelihood of success at those plants.”