Award of $2.25 million Low Co

RNS Number : 1690Y

Oxford Catalysts Group PLC

28 August 2009

 



28th August 2009 

OXFORD CATALYSTS GROUP PLC

('Oxford Catalysts' or 'the Group' or 'the Company'

Award of $2.25 million Low Cost Drawdown Facility

Oxford Catalysts Group PLC, the leading technology innovator for clean synthetic fuels, is pleased to announce that its US subsidiary, Velocys, Inc. ('Velocys'), has been awarded a $2.25 million R&D drawdown facility from the State of Ohio. The facility can be called upon at any time over the next two years, is repayable over a period of ten years, and carries a fixed interest rate of 2% per annum on funds drawn. 

The Company intends to utilise this loan to help finance any capital investments that are needed to bring its technology to market, including demonstrations, such as at the Wright-Patterson Air Force Base near Dayton, Ohio, as well as for refinement of low cost mass manufacturing techniques. 

Roy Lipski, CEO of Oxford Catalysts Group said:

'This loan, which bolsters our already strong balance sheet, continues to build upon the strategic relationship between the State of Ohio and Velocys. The favourable terms offered by the State allow us to further invest in consolidating our leading market position in synthetic fuels.'

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For further information, please contact:

Roy Lipski, CEO, Oxford Catalysts	01235 841 700
Jonathan Marren / Oliver Stratton, KBC Peel Hunt (Nomad and Broker)	020 7418 8990
Billy Clegg / Alex Beagley, Financial Dynamics	020 7831 3113

Notes to Editors

Oxford Catalysts designs and develops technology for the production of clean synthetic fuels from both conventional fossil fuels and renewable sources such as biowaste. The Group is primarily focused on the emerging market for distributed smaller scale production of synthetic fuels (via Fischer-Tropsch) − a market that has the potential of producing as much as 25 million barrels of fuel a day. 

The Fischer-Tropsch ('FT') reaction is used when converting natural gas, coal or bio-mass into virtually sulphur-free liquid synthetic fuels, known as GTL, CTL and BTL respectively. The Group is the recognised world leader in the design and development of high-activity catalysts and associated novel chemical reactors for the small scale production of synthetic fuels. (The Group's reactor technology − known as microchannel process technology − is currently marketed under the brand name of Velocys).

Oxford Catalysts Group PLC is listed on London's AIM market (LSE: OCG). The Group has some 90 employees with facilities near Abingdon, Oxfordshire, UK and Columbus, Ohio, USA.

 

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