Velocys: Construction complete on Oklahoma City GTL project

By Erin Voegele | September 27, 2016

Velocys plc has announced that construction of Envia Energy’s gas-to-liquids (GTL) plant in Oklahoma City, Oklahoma, is now complete. The company has also released its interim results for the first half of 2016.

Envia Energy is a joint venture of Velocys, Waste Management, NRG Energy and Ventech that will deploy several of Velocys’ full-scale commercial Fischer-Tropsch reactors. According to Velocys, the project will act as the commercial reference plant for its technology.

On Sept. 21, Velocys announced that construction of the Oklahoma City project is complete. On-site loading of catalyst into the Fischer-Tropsch reactors has been completed by Velocys, with support from its partner Mourik, the company added.

According to Velocys, pre-commissioning work, including hydro-testing of the lines and vessels, and a rigorous inspection process, is substantially complete. The company also indicated its team has made extensive and detailed preparations, has completed operating manuals and procedures, and commissioning and start-up plans are in place. Velocys said that the commissioning plan will ensure that each process system in sequence is working robustly, safely and within specification and added that early commissioning steps have begun.

"Operational start-up of the Envia plant is now within sight; its successful steady state operation will represent the next seminal milestone for Velocys and a significant step for the smaller scale GTL industry,” said David Pummell, CEO of Velocys. “Velocys and its partners continue to work together on site in a high-performing professional collaboration and I remain confident that we will continue to build on this progress to deliver a safe and successful start-up of the plant in the near future, and the timely production of in-specification product."

On Sept. 26, Velocys released financial results for the first half of the year. The company reported venue of £500,000 ($648,625) for the first six months of the year, up from £100,000 reported for the same period of last year. Cash at the end of the half was £24.1 million, compared to £37.7 million at the end of 2015.

In addition to the Oklahoma City project, the company reported that preliminary engineering studies have been completed for a GTL project in Central Asia. In addition, an air permit has been granted for a third-party project in the U.S. The company also noted that a strategy review is underway, with an update expected to be released during the fourth quarter.