05-06-2017

Velocys selects IHI E&C for biomass-to-liquids plant feasibility engineering

Velocys plc, the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce that it has selected IHI E&C International Corp to carry out the pre-FEED (FEL-2) engineering for its first biomass-to-liquids (BTL) plant. IHI E&C is working with Velocys and its technology partners to support the rapid deployment of the BTL plant offer to the renewable fuels sector. This aligns with both Velocys' and IHI E&C's strategic intent to enter the US renewable transportation fuels market. The engineering study will be completed in the second half of 2017.

IHI E&C is part of IHI Corporation's global network of companies and joint ventures. IHI E&C specialises in engineering, procurement and construction (EPC) services with the expertise, experience and capability to take a project from conception through completion, including commissioning, start-up and ongoing support. IHI has experience with solid feedstocks through its work on numerous BTL, gasification, alternative energy and waste-to-power facilities around the world throughout the last several decades. IHI E&C also has extensive experience in engineering and construction of projects employing gasification processes and Fischer-Tropsch technology.

The selection of IHI E&C for the FEL-2 engineering stage for the BTL route to market is an important step forward in identifying the right collection of strategic partners that are best positioned to deliver the Velocys offer to customers - fully integrated and financed, cost effective and operations-ready plants.

David Pummell, CEO of Velocys, said: "We believe IHI has the right experience and capabilities to advance the pre-FEED engineering of our integrated BTL offering. IHI is a world class EPC and they have an excellent track record across the entire BTL value chain that will drive further reductions in costs for our customers and accelerate the timeline to renewable fuels produced on a scalable and repeatable basis."

Chris Celano, President of IHI E&C, said: "IHI E&C is pleased to have been awarded the pre-FEED for Velocys' first biomass-to-liquids plant and welcomes the opportunity to work with Velocys and its strategic partners on this project. The award supports IHI E&C's strategy within the renewables market and aligns with IHI Corporation's mission to provide engineering solutions for social problems."