Velocys releases funding to complete US GTL plant

The AIM-traded firm operating in the smaller scale gas-to-liquids (GTL) industry said the contract covered the installation of process modules, related piping and ancillary equipment for ENVIA's Oklahoma City plant, located next to Waste Management's East Oak landfill site.

ENVIA Energy is a joint venture with members including a subsidiary of Waste Management, Ventech Engineers, and Velocys. It was formed in March 2014 to produce renewable fuels and chemicals from biogas and natural gas, using GTL technology.

"ENVIA's Oklahoma City project is continuing to meet key milestones", said Velocys CEO David Pummell.

"The additional funding Velocys has released demonstrates both the company's commitment to the project, which will provide an important commercial reference plant for the use of Velocys' technology, and the confidence we have in its success", he added.

Velocys made available up to $12m (£8.25m) of further funding as part of a stakeholder capital contribution, following which the company expected the plant would be fully funded through construction, completion and operation.

Of the commitment, $3m was Velocys' equity contribution and $9m was being provided as a loan secured on the project.

Fabrication of the modular process units by Ventech Engineers at their Texas facility was essentially complete, it was reported, with mechanical completion of the GTL plant to be expected in mid-2016.