Statement re Share Price Movement

RNS Number : 0034A

Velocys PLC

06 September 2018

 

News release

Velocys plc

("Velocys" or "the Company")

6 September 2018

Statement re Share Price Movement

Velocys plc (VLS.L), the renewable fuels company, notes the recent movement in its share price and provides the following update.

The Board of ENVIA Energy has continued to work to assess the likely funding requirements of ENVIA's plant in Oklahoma City to achieve positive cash flows and to progress with its insurance claims. Discussions are ongoing between ENVIA, its Joint Venture partners, and Velocys as technology licensor, minority shareholder and secured lender to the project regarding a range of funding and other options for the plant. Such options include seeking financial contributions from the joint venture partners including the Company which, if not supported by the Company and/or its JV partners could result in a majority decision to shut down the plant, sell to a third party or liquidate the joint venture. ENVIA's investigation into the leak identified the ancillary coolant system as the root cause. This determination has subsequently been independently endorsed, by ENVIA's appointed insurance company, which found that the leak it was not a result of any flaw in the core Velocys Fischer-Tropsch (FT) technology.

The Mississippi biorefinery project remains on track, having just obtained a 'Finding of No Significant Impact' from the U.S. Department of Agriculture on the project's Environmental Assessment report, a key regulatory milestone for the further development of the site. Velocys continues to progress with its process to secure the necessary development capital investment by one or more strategic partners. The UK waste-to-renewable jet fuel plant project is also progressing, having recently received £434k from the Department for Transport (DfT) under the Future Fuels for Flight and Freight Competition (F4C), as part of an overall £4.9m funding from project partners, including Shell and British Airways. Pre-FEED work on the project is ongoing. Lastly, Velocys understands that Red Rock Biofuels' project is continuing on track with its biorefinery project.

Velocys will make further announcements as appropriate.

- Ends -

For further information, please contact:

Velocys David Pummell, CEO	[phone]
Numis Securities (Nomad and joint broker) Alex Ham Stuart Skinner Jamie Lillywhite Tom Ballard	[phone]
Canaccord Genuity (Joint broker) Henry Fitzgerald-O'Connor Ben Griffiths	[phone]
Camarco (Financial communications & PR) Billy Clegg Georgia Edmonds Tom Huddart	[phone]
Scoville Public Relations (US public relations) John Williams	[phone]#1

www.velocys.com 

 

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