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Velocys PLC (VLS)

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Wednesday 04 July, 2018

Velocys PLC

ENVIA plant update

RNS Number : 5436T
Velocys PLC
04 July 2018
 

News release

Velocys plc

("Velocys" or "the Company")

4 July 2018

 

ENVIA plant update

Velocys plc (VLS.L), the renewable fuels company, provides an update on the Fischer-Tropsch (FT) reactors at the ENVIA Energy LLC Oklahoma City plant.

 

Since the internal leak in an FT reactor was announced on 15th May 2018, this reactor has been removed from operation and is undergoing analysis by ENVIA's insurance company as it processes a claim. The plant continues to operate using its second Velocys FT reactor.

 

ENVIA's Root Cause Analysis (RCA) investigation identified the ancillary coolant system as the root cause of the leak. ENVIA has since implemented modifications to rectify a design flaw in the ancillary coolant system serving the second reactor and has also modified operating procedures. The second reactor has now operated successfully without incident through the same cycle through which the first reactor was operating when the leak was detected.

 

This successful operation of the second reactor supports the findings of the ENVIA RCA investigation. The Company's position remains that the root cause of the leak in the first reactor was a design flaw in the ancillary coolant system and not the result of any flaw in the core Velocys FT technology. The Velocys FT reactor is designed to safely contain this kind of leak to ensure there is no impact to personnel or the environment.

 

Velocys, as licensor of the FT technology and as a minority shareowner, continues to provide support to the ENVIA JV and the ENVIA team. Velocys remains committed to the ENVIA plant and will continue to work with ENVIA to assess the likely repair cost and consequent funding requirements.

 

- Ends -

For further information, please contact:

Velocys

David Pummell, CEO

 

+44 1235 838 621

 

Numis Securities (Nomad and joint broker)

Alex Ham

Stuart Skinner

Jamie Lillywhite

Tom Ballard

 

+44 20 7260 1000

Canaccord Genuity (Joint broker)

Henry Fitzgerald-O'Connor

Ben Griffiths

+44 20 7523 8000

 

 

 

Camarco (UK financial communications & PR)

Billy Clegg

Georgia Edmonds

Tom Huddart

+44 20 3757 4983

 

 

 

Scoville Public Relations (US public relations)

John Williams

+1 206 625 0075 #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.

 

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