Successful close-out of ENVIA JV

RNS Number : 3224X

Velocys PLC

29 April 2019

 

News release

Velocys plc             

("Velocys" or "the Company")

29 April 2019

Successful close-out of ENVIA JV

Velocys Plc, (VLS.L) is a minority equity stakeholder of and the senior secured lender to ENVIA Energy, LLC (ENVIA). Velocys announces it has agreed with ENVIA and the other ENVIA joint venture partners to transfer rights of the site from ENVIA to another ENVIA JV partner in return for payment of $4.15m to Velocys. As part of the agreements, ENVIA will sell certain parts of the site infrastructure and remove the remaining equipment from the site. Velocys also releases its liens on all equipment from the site in return for a significant recovery under its collateralised loan note to ENVIA.

A total of $2.15 million has already been received by Velocys and an additional $2 million will be paid upon the completion of several performance milestones related to the removal of equipment.

Henrik Wareborn, CEO of Velocys, said:

"We are pleased to have worked collaboratively with the other ENVIA joint venture partners on a mutually beneficial solution, allowing the ENVIA site to be repurposed to a renewable natural gas plant and for Velocys to get a fair reimbursement for its financial contributions to ENVIA, during the strategically critical demonstration of the new full scale Velocys FT reactors over the last two years.

We continue to focus our attention, resources and assets on the development of our two

commercial scale biorefineries in Immingham, UK and Natchez, Mississippi.  We are leveraging all the experience and evidence embedded in the two Velocys microchannel FT reactors from ENVIA, which recently were returned to Velocys in Ohio, upon the completion of the commercial scale production run".

For further information, please contact:

Velocys Henrik Wareborn, CEO	+ 44 1235 838621
Numis Securities (Nomad and joint broker) Alex Ham Stuart Skinner Tom Ballard	[phone]
Canaccord Genuity (Joint broker) Henry Fitzgerald-O'Connor Ben Griffiths	[phone]
Camarco (UK financial communications & PR) Billy Clegg Ben Woodford Tom Huddart	[phone]
Scoville Public Relations (Velocys US public relations) John Williams	[phone] #1

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.

www.velocys.com

 

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