GreenSky London Progress Update

RNS Number : 4247S

Oxford Catalysts Group PLC

30 November 2012

 



30^th November 2012

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group" or "the Company")

GreenSky London Progress Update

Oxford Catalysts Group (OCG.L), the modular Gas-to-Liquids technology innovator, is pleased to report several significant milestones announced today by British Airways concerning the GreenSky London project being developed by Solena Fuels Corporation (Solena).

Highlights

·     British Airways has confirmed that it has committed to purchase the sustainable jet fuel produced by the plant for ten years (at market rates) - worth $500 million (£315 million) at current prices

·     Barclays has been appointed as advisor on funding through export credit agencies

·     A Competitive Letter of Interest has been obtained from an export credit agency to provide financing, including associated term funding

·     An exclusive option on a site for the facility has been signed and consent work began

·     Pre-front end engineering and design work for the plant has started

·     Target start date of 2015 confirmed

In July 2012, Oxford Catalysts was selected by project developer Solena to provide its Fischer-Tropsch (FT) technology to GreenSky London, Europe's first commercial scale sustainable jet fuel facility, being developed in partnership with British Airways.

GreenSky London is the first of several waste-biomass to jet fuel projects planned by Solena. It will convert 500,000 tonnes per annum of London's waste, destined for landfill, into 50,000 tonnes (~1,100 bpd) of sustainable low carbon jet fuel, and 50,000 tonnes (~1,100 bpd) of ultra-low sulphur FT diesel and green naphtha, as well as renewable power. The project intends to be operational by 2015.

British Airways has a stated goal of reducing its net carbon emissions by 50% by 2050.

As reported in July 2012, successful implementation of the GreenSky London project and receipt of the notice to proceed (targeted for 2013) is expected to generate revenues to the Group in excess of $30 million during the construction phase, and additional ongoing revenues of more than $50 million over the first 15 years of the plant's operation.

Roy Lipski, CEO of Oxford Catalysts Group said:

"Today's confirmation of British Airways' financial commitment to the project represents a major step forward for GreenSky London. We are very pleased to be part of this landmark facility and to contribute to British Airways' strategy for sustainable aviation, as well as Solena's worldwide project roll out plans."

Jonathon Counsell, Head of Environment at British Airways said:

"We are delighted that the GreenSky London project is getting closer to fruition.   With world-class technology partners such as Oxford Catalysts now in place, we are well on our way to making sustainable aviation fuel a reality for British Airways by 2015."

Robert Do, President and CEO of Solena said:

"The British Airways off-take agreement represents the largest advanced biofuel commitment ever made by an airline and clearly demonstrates British Airways' leadership and vision in achieving its carbon emission reduction targets. We are proud to have Oxford Catalysts as part of the consortium of world class companies assembled for the GreenSky London project."

Today's British Airways announcement is reproduced in full below.

- Ends -

For further information, please contact:

Oxford Catalysts Roy Lipski, CEO Susan Robertson, CFO	[phone] [phone]
Cenkos Securities (Nomad and Broker) Ken Fleming / Neil McDonald	[phone] [phone]
FTI Consulting Billy Clegg / Alex Beagley	[phone]

British Airways' press announcement released today reads in full as follows:

GreenSky London biofuel plant preparing for lift-off

British Airways and Solena are gaining momentum in their goal of producing sustainable jet fuel with technology partners for their GreenSky London initiative now in place and British Airways confirming its financial commitment.

GreenSky London is a flagship project that will see the construction of a state of the art facility that will annually convert approximately 500,000 tonnes of waste normally destined for landfill into 50,000 tonnes of sustainable low carbon jet fuel, 50,000 tonnes of biodiesel, bionaphtha and renewable power.

Solena's technology consortium continues to grow and includes:

·     SolenaFuels Corporation will provide the high temperature gasification process that converts waste matter into synthesis gas and the overall Integrated Biomass Gasification to Liquids (IBGTL) solution

·     Oxford Catalysts Group/Velocys will supply the Fisher-Tropsch (FT) reactors and catalyst which will convert the cleaned synthesis gas into liquid hydrocarbons

·     Fluor has started the pre-front end engineering and design (Pre-FEED) for the project.  Fluor is a world leader in project execution and bio-fuel projects, and is providing engineering services to support Solena.

British Airways has committed to purchasing, at market competitive prices, the jet fuel produced by the plant for the next ten years which equates to US$500 million at today's prices.  Barclays has also been appointed as advisor to explore the optimal funding through Export Credit Agencies. A Competitive Letter of Interest has been obtained from one of the Agencies including associated term funding.

GreenSky London has signed an exclusive option on a site for the facility and consent work for the site has begun. More than 150 jobs will be created to operate the facility, as well as 1000 construction positions. The partners aim to have the site operational by 2015.

Keith Williams, chief executive of British Airways, said:  "We are delighted that the GreenSky London project is getting ever closer to fruition.   With world-class technology partners now in place, we are well on our way to making sustainable aviation fuel a reality for British Airways by 2015."

Robert Do, President and CEO of Solena, said:  "Our GreenSky London project will provide clean, sustainable fuels at market competitive prices that will help address British Airways' sustainability goals.  The British Airways off-take agreement represents the largest advanced biofuel commitment ever made by an airline and clearly demonstrates the airline's leadership and vision in achieving its carbon emission reduction targets.  We are proud to have created a consortium of world class companies with expertise in the synthetic fuels sector to support our project."

Roy Lipski, CEO of Oxford Catalysts Group, stated "Oxford Catalysts is pleased to be playing a key role in the enabling of GreenSky London. This project looks set to become a landmark in the development of the sustainable fuels market, both in the UK and worldwide".

Ends

30 November 2012                                                                             CW/132/2012

Notes for editors

·     An independent Life Cycle Assessment (LCA), which focuses on greenhouse gas (GHG) emissions has been carried out on the synthetic biojet fuel produced using the Solena proprietary Integrated Biomass Gasification to Liquids (IBGTL) solution by North Energy Associates Ltd.  Results show that the GHG emissions savings exceed the requirements of both the EU's Renewable Energy Directive (RED) (minimum 60 per cent) and Roundtable on Sustainable Biofuels (RSB) methodologies (minimum 50 per cent).

·     Fischer-Tropsch derived fuels are certified as an aviation fuel in a 50 per cent blend with Jet A-1.

·     Enough sustainable jet fuel will be produced to power two per cent of the British Airways' fleet departing from London airports

·     British Airways' goal is to reduce its net carbon emissions by 50 per cent by 2050

About Solena Fuels Corporation

Solena Fuels is a sustainable energy company developing Integrated Biomass Gasification to Liquids (IBGTL) facilities around the world utilising its proprietary gasification technology as the initial processing block.  Solena's sustainable jet and diesel fuels help airlines and shipping companies cost-effectively utilise non-petroleum sourced liquid fuels.  Solena Fuels is a privately-held company headquartered in Washington DC, USA.

Contact: Brian Miloski CFO, [e-mail]

About Oxford Catalysts

Oxford Catalysts enables modular Fischer-Tropsch plants to convert biomass, waste and low value feedstocks such as unconventional, remote and problem gas into valuable liquid fuels, including diesel and jet fuel. Systems based on the Group's technology (marketed under the brand name Velocys) are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller scales than is possible with competing systems.

About Fluor

Fluor Corporation is one of the world's largest engineering, procurement, construction and project management services companies. Founded in 1912, the company is celebrating its 100th anniversary and from humble beginnings now has a global network of offices on six continents.  For more information visit www.fluor100.com and www.fluor.com.

Contact details:

British Airways Press Office, Cathy West [phone]

Notes to Editors

Oxford Catalysts enables modular Fischer-Tropsch plants to convert biomass, waste and low value feedstocks such as unconventional, remote and problem gas into valuable liquid fuels, including diesel and jet fuel. Systems based on the Group's technology (marketed under the brand name Velocys) are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller scales than is possible with competing systems.

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 85 employees with facilities near Oxford, UK and Columbus, Ohio, USA.

www.oxfordcatalysts.com

www.velocys.com

About GreenSky London

GreenSky London is planned to be Europe's first sustainable jet fuel facility. Established by Solena Fuels, in partnership with British Airways, the project will convert waste biomass into a combination of sustainable jet fuel, diesel, naphtha and power. GreenSky London is aiming to be operational in 2015. It will create 150 permanent positions, as well as 1,000 jobs during construction. GreenSky London intends to use Oxford Catalysts' proprietary Fischer-Tropsch technology to convert synthesis gas into liquid hydrocarbons.

About Solena Fuels Corporation

Solena is developing Biomass-to-Liquids plants around the world utilising its proprietary gasification technology. Solena's synthetic fuel is a "drop-in" fuel that allows airlines and shipping companies to utilise a sustainable energy source without any changes to their engines or infrastructure. Solena is a privately held corporation, headquartered in Washington, DC, USA.

www.solenafuels.com

 

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