Velocys PLC ENVIA plant update (0399O)
15 May 2018 - 4:00PM
UK Regulatory
TIDMVLS
RNS Number : 0399O
Velocys PLC
15 May 2018
News release
Velocys plc
("Velocys" or "the Company")
15 May 2018
ENVIA plant update
Velocys plc (VLS.L), the renewable fuels company, announces that
it has been informed by ENVIA Energy, LLC (the operator of the
ENVIA Oklahoma City plant and licensee of the Company's reactor and
catalyst technology) that a leak has been detected that is believed
to have originated inside one of the plant's two Fischer-Tropsch
(FT) reactors. The Company is confident that the issue is not a
result of a flaw in the core Velocys FT technology.
Based on the preliminary investigation by ENVIA and supported by
Velocys personnel, the Company currently believes the root cause of
the issue originated with the design of an ancillary system.
Velocys, as licensor of the FT technology, is working with the
ENVIA team as well as third party consultants to verify the root
cause of the leak and to support the development of a solution that
will return the plant to full operation with minimal loss of
revenue.
Until the issue has been remedied, the aim will be to operate
the Oklahoma City plant using one reactor. It is unlikely that the
plant will become cash flow positive in Q2 2018 as previously
expected. Velocys remains committed to the ENVIA plant and will
work with ENVIA to assess the likely repair cost and consequent
funding requirements.
An update will be provided in due course.
- Ends -
For further information, please contact:
Velocys
David Pummell, 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) +1 206 625 0075
John Williams #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.
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This information is provided by RNS
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