25-03-2014

GTL joint venture

Velocys plc the technology innovator for smaller scale gas-to-liquids (GTL), is pleased to announce that it has entered a joint venture with Waste Management, NRG Energy (NRG), and Ventech Engineers International (Ventech) to develop gas-to-liquids (GTL) plants in the United States and other select geographies.
 
The JV will pursue the development of multiple plants utilising a combination of renewable biogas (including landfill gas) and natural gas. Waste Management intends to supply renewable gas and, in certain cases, project sites. All four members will work exclusively through the JV to pursue the intended application (GTL using renewable gas, optionally in conjunction with natural gas) in the United States, Canada, United Kingdom and China.
 
As its first commercial facility, the JV is targeting a plant to be located at Waste Management's East Oak landfill site in Oklahoma, US. Detailed engineering for this first project is being completed, while final draft permitting documents for the facility have been submitted. The JV intends making a final decision to proceed on this first plant this year. Development activities for additional facilities are expected to commence shortly.
 
Waste Management is North America's leading provider of comprehensive waste management services and the 200th largest company in the Fortune list. NRG owns the largest and most diverse competitive power generation portfolio in the United States and is a Fortune 500 company. Ventech is a global leader in the design and construction of modular refineries.

Velocys holds a minority interest in the JV. Its principal financial commitment to the JV arises after a decision is made to proceed with the first project, which the Company believes it can comfortably accommodate from its current balance sheet. Velocys and other members each have the right, but not the obligation, to participate in the funding of additional future plants.