Velocys confirms partnership with Japanese engineer Morimatsu

Small scale gas-to-liquids company Velocys confirmed that Japanese engineer Morimatsu will be its preferred supplier of modular design, engineering and fabrication services.

The AIM-listed company has signed an agreement with Morimatsu (Jiangsu) Heavy Industry Co, a subsidiary of Morimatsu Industry Co, to confirm the memorandum of understanding agreed in January between Velocys and Morimatsu ;

Morimatsu will supply modular design, engineering and fabrication services to Velocys, in order for Velocys to offer integrated, fully financed, cost effective and operations-ready plants to its customers.

The companies are working together with Velocys' other partners, to further reduce costs, optimise engineering designs, accelerate pace and reduce overall risk, for delivering multiple gas-to-liquids and biomass-to-liquids plants.

Shares in Velocys were up 3.9% to 63.25 GMT.