100 bpd integrated GTL facility for PTT

RNS Number : 5959Q

Velocys PLC

16 October 2013

 



16^th October 2013

Velocys plc

("Velocys" or "the Company")

(Formerly known as Oxford Catalysts Group PLC)

 

100 bpd integrated GTL facility for PTT

Velocys plc (VLS.L), the technology innovator for smaller scale gas-to-liquids (GTL), is pleased to announce that it has executed a commercial agreement with PTT Public Company Limited (PTT), the national energy company of Thailand and Fortune Global 100 firm, to proceed with the commercial deployment of the Company's GTL technology in Thailand and other regions.

The two companies have been collaborating since late 2009. In February 2010, under the terms of an MOU, PTT agreed to provide funding for the development and commercialisation of the Company's microchannel steam methane reforming (SMR) technology. In 2012, under the terms of a research collaboration with Velocys, PTT opened a new experimental facility for testing microchannel reactors at its Research Institute in Wangnoi, approximately 70km north of Bangkok, Thailand.

In this next phase of collaboration, PTT has commissioned Toyo Engineering Corporation to prepare a detailed front end engineering design (FEED) for a 100 barrel per day (bpd) GTL plant that will incorporate the Company's SMR and Fischer-Tropsch (FT) technologies. The plant will be located at one of PTT's production facilities in Thailand. The engineering study will be completed in mid-2014 and will be followed by the final investment decision and facility construction.

Roy Lipski, CEO of Velocys, said:

"We're delighted to be working with PTT and to be progressing with the design of this integrated GTL plant using Velocys technology. It stands to be the largest capacity modular GTL plant of its kind commissioned anywhere in the world, to date."

Pailin Chuchottaworn, President & CEO of PTT, said:

"Synthetic fuels are a strategic growth area for PTT. We are pleased to progress our partnership with Velocys, the leaders in smaller scale GTL."

Masayuki Uchida, Director & Senior Executive Officer of Toyo, said:

"Toyo is pleased to build upon our successful joint development and demonstration activities with Velocys and begin this GTL project with PTT, one of our long-standing clients."

- Ends -

For further information, please contact:

Velocys Roy Lipski, CEO Susan Robertson, CFO	[phone] [phone]
Numis Securities (Nomad and Broker) Alex Ham - Corporate Broking Stuart Skinner / Jamie Lillywhite - Nominated Advisor	[phone]
Lionsgate Communications Jonathan Charles / Jessica Johnson	[phone]

Notes to editors

Velocys (formerly Oxford Catalysts) enables modular gas-to-liquids (GTL) plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Company's technology are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Velocys provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day

Velocys plc is listed on the AIM market of the London Stock Exchange (LSE: VLS). The Company has approx. 100 employees with facilities in Houston, Texas, USA and near Oxford, UK and Columbus, Ohio, USA.

www.velocys.com

About PTT

PTT Public Company Limited, or PTT, was registered as a public company under the Corporatisation Act on 1 October 2001 with a capitalisation of 20,000 million baht. Currently, PTT is Thailand's fully integrated energy company with leading positions in exploration and production, transmission, petrochemical, refining, marketing, and trading of petroleum and petrochemical products. PTT is 51% directly owned by the Thai Ministry of Finance. In 2013, PTT was ranked the world's 81st-largest corporation in the Fortune Global 500 list.

www.pttplc.com/en

About Toyo Engineering

The Toyo Engineering Corporation, with a head office in Chiba, Japan, is a global business that specialises in R&D collaboration, design, engineering, equipment procurement, construction, test operations and technical guidance in the petrochemicals, chemicals, energy and environmental markets.

www.toyo-eng.co.jp/en

 

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