TIDMVLS
Velocys PLC
26 November 2015
News release
Velocys plc
("Velocys" or "the Company")
26(th) November 2015
Technology optimisation, improving plant economics
Velocys plc (VLS.L), the company at the forefront of smaller
scale gas-to-liquids (GTL), is pleased to announce the successful
completion of pilot plant tests that demonstrate significant
process intensification, increasing capacity and productivity and
improving commercial plant economics.
The tests:
-- Demonstrate that continuous improvements over the last 18
months have resulted in a greater than 50% increase in capacity,
without changing the commercial catalyst formulation or the reactor
design.
-- Prove that superior yields of high value liquid hydrocarbon
products can be maintained while simultaneously achieving these
high productivities. Carbon monoxide conversions of 70% per pass,
or 91-92% overall, are achieved concurrently with a C5+ selectivity
(the percentage of the products that are liquid rather than
low-value gaseous hydrocarbons) of about 90% and a methane
selectivity as low as about 5%.
-- Show industry-leading yields of the highest value, longer
chain hydrocarbons (such as those used in the production of
speciality chemicals) at high productivities. This increases the
potential revenue from a plant with a given input, enabling plant
operators to access higher value markets and reducing the impact of
oil price volatility.
-- Employed a new start-up protocol enabling the pilot plant to
reach target operating conditions in eight hours; a very
significant improvement. As a result, this will improve further the
economics of commercial plants and increase their availability.
Advances made at the pilot plant have already been incorporated
into the design of the 4,800 barrel per day Ashtabula GTL plant
that the Company is developing in Ohio.
Dr Paul Schubert, Chief Operating Officer of Velocys explained
the significance of the latest Velocys pilot plant results in a BRR
Media webcast, which can be viewed here.
Dr Paul Schubert, Chief Operating Officer of Velocys, said:
"These results are a reflection of the tremendous progress that
our in-house technical teams have made and are continuing to make,
quietly in the background, in what has been a delivery-focused year
for the business.
"Velocys technology has now been tested for over 24,000 hours at
the pilot and demonstration scale and for over 1.3 million hours in
the laboratory. We enter our commercial phase with a technology
that has been developed with rigour and thoroughness and in which
we, our clients and partners can have every confidence."
- Ends -
For further information, please contact:
Velocys
Susan Robertson, CFO and acting +44 1235 841
CEO 700
Numis Securities (Nomad and Broker)
Alex Ham - Corporate Broking
Stuart Skinner / Jamie Lillywhite +44 20 7260
- Nominated Adviser 1000
Camarco (financial communications
& PR) +44 20 3757
Billy Clegg / Georgia Mann 4983
Notes to editors
About Velocys
Velocys is the company at the forefront of smaller scale
gas-to-liquids (GTL) that turns natural gas or biomass into premium
liquid products such as diesel and jet fuel. Smaller scale GTL adds
value to shale gas and bio-waste, and makes stranded or flared gas
economic - an untapped market of up to 25 million barrels per
day.
Velocys technology, protected by several hundred patents in over
30 countries, is specifically designed for smaller scales,
combining super-active catalysts with intensified reactor systems.
The Company's standardised modular plants are easier to ship and
faster to install, at lower risk, even in the most remote or
challenging locations. Together with world-class partners, Velocys
works flexibly to unlock gas resources of 15,000 to 150,000 mmbtu
per day, allowing more companies to take advantage of more
opportunities.
Velocys plc is listed on the AIM market of the London Stock
Exchange (LSE: VLS). The Company is well capitalised and has a
multi-disciplinary staff of around 100 operating from its
commercial centre in Houston, Texas, USA and technical facilities
near Oxford, UK and Columbus, Ohio, USA. Its first commercial
plant, funded by Waste Management (NYSE: WM), NRG Energy (NYSE:
NRG) and Ventech Engineers, is expected to reach mechanical
completion in H1 2016.
www.velocys.com
Think Smaller(TM). Velocys is changing the way fuels are
made.
About Velocys technology
Velocys' Fischer-Tropsch (FT) reactor and catalyst system
delivers high conversion efficiency and high yield of high value
products.
Particularly in today's oil price environment, project owners
and developers need to select the technology that will allow them
to achieve the best possible economic returns from their plant.
Velocys technology:
-- Offers high CO conversion using a 1-stage (with recycle)
approach to the FT process. Total CO conversion exceeds 91%, which
is higher than that offered by other smaller scale FT
technologies.
-- Delivers high yields of liquid products. C5+ selectivities of
up to 90% are achieved, leading to an overall C5+ product yield of
around 82%. This results in high plant efficiencies, less equipment
per unit of feedstock and a lower capital expenditure.
-- Can be configured to produce high proportions of high value
long-chain products. Velocys technology typically runs with an
alpha (the standard measure for the proportion of products in an FT
process) of 0.93 at the start of run. This increases the revenues
that are possible from a plant with a given input, enabling plant
operators to access high value markets and insulating projects from
oil price volatility
-- Incorporates a high stability catalyst leading to a long
catalyst life and increased plant up-time. Velocys' customers can
expect to use each batch of catalyst for at least two years, and
maybe much longer, before change-out.
-- Is robust and optimised not only for peak performance but
also to meet the challenges of everyday feed and situational
variances.
-- Is operationally ready. All the protocols required to operate
a commercial plant have been demonstrated at the Velocys pilot
plant.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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