Commercial reactor sale

RNS Number : 9221W

Velocys PLC

06 January 2014

 



6th January 2014

Velocys plc

("Velocys" or "the Company")

(Formerly known as Oxford Catalysts Group PLC)

 

Commercial reactor sale

Velocys plc (VLS.L), the technology innovator for smaller scale gas-to-liquids (GTL), is pleased to announce that it has executed an agreement for the sale of a commercial Fischer-Tropsch (FT) reactor to a customer in the Commonwealth of Independent States (CIS).

The 175 bpd reactor, with accompanying catalyst, will be installed in a small GTL plant processing natural gas into synthetic crude, and is intended to be delivered in the second half of 2014. Along with the accompanying engineering services, the transaction is expected to generate over $2 million of revenue to the Company during 2014-15.

Roy Lipski, CEO of Velocys, said:

"We're pleased to have sold another commercial reactor and to be making further headway in this important region. Velocys' GTL technology is well suited to the needs of the CIS, allowing cost-effective monetisation of stranded gas resources and dealing with the problem of associated gas flaring, which is a priority in the region for oil producers and governments alike."

- 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 Adviser	[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

 

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