Velocys completes Oklahoma plant, posts strategic review

Small scale gas-to-liquids company Velocys announced the results of its strategic review on Tuesday, following the completion of construction of its commercial reference plant in Oklahoma City, where commissioning was ongoing.

The AIM-traded firm said the new strategy would build on that and Velocys' leadership position, adopting a business model to increase control over project delivery through a partnership approach and focussing on the most attractive markets.

It said there were four core themes underpinning the new Velocys strategy, with the first being to implement alliances with partners that have the required resources, scale and capabilities to access large, high value markets and drive growth.

The second part was to become the “clear market leader” alongside its partners by taking control of multiple projects, reducing delivery risk and accelerating growth, whilst remaining capital light, with strong economics from technology sales.

Thirdly, the board said it wanted to deliver a "one-stop-shop" offer to customers, and finally it said it will leverage its differentiated technology, engineering and operational capabilities, working with partners to modularise and drive down costs of the complete offer.

“Velocys has achieved significant milestones over the last 15 years, culminating in the construction of our commercial reference plant in Oklahoma City, which is now being commissioned,” said CEO David Pummell.

“The time is now right to build on our position of strength; we are mobilising to create world-class partnerships to take leadership positions in key high-value markets.”

Pummell said he was confident that the company has the right strategy to deliver a “substantive” growth business.

“I look forward to providing further details of the strategic alliances that will underpin this strategy as we roll them out.”