Velocys PLC ENVIA plant update (5436T)
04 July 2018 - 4:00PM
UK Regulatory
TIDMVLS
RNS Number : 5436T
Velocys PLC
04 July 2018
News release
Velocys plc
("Velocys" or "the Company")
4 July 2018
ENVIA plant update
Velocys plc (VLS.L), the renewable fuels company, provides an
update on the Fischer-Tropsch (FT) reactors at the ENVIA Energy LLC
Oklahoma City plant.
Since the internal leak in an FT reactor was announced on 15(th)
May 2018, this reactor has been removed from operation and is
undergoing analysis by ENVIA's insurance company as it processes a
claim. The plant continues to operate using its second Velocys FT
reactor.
ENVIA's Root Cause Analysis (RCA) investigation identified the
ancillary coolant system as the root cause of the leak. ENVIA has
since implemented modifications to rectify a design flaw in the
ancillary coolant system serving the second reactor and has also
modified operating procedures. The second reactor has now operated
successfully without incident through the same cycle through which
the first reactor was operating when the leak was detected.
This successful operation of the second reactor supports the
findings of the ENVIA RCA investigation. The Company's position
remains that the root cause of the leak in the first reactor was a
design flaw in the ancillary coolant system and not the result of
any flaw in the core Velocys FT technology. The Velocys FT reactor
is designed to safely contain this kind of leak to ensure there is
no impact to personnel or the environment.
Velocys, as licensor of the FT technology and as a minority
shareowner, continues to provide support to the ENVIA JV and the
ENVIA team. Velocys remains committed to the ENVIA plant and will
continue to work with ENVIA to assess the likely repair cost and
consequent funding requirements.
- 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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END
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