Velocys customer Red Rock Biofuels cuts size of firm reactor order

Writer, Stock Market Wire
Tuesday, February 12, 2019 - 09:44

Alternative fuel company Velocys said it had agreed to a series of amendments in its licensing contracts with Red Rock Biofuels in order to speed up completion of a planned bio-refinery.

The changes were related to RRB's license of Velocys Fischer-Tropsch reactors and proprietary catalyst for the RRB biorefinery under construction in Lakeview, Oregon.

They included Velocys accelerating the delivery of the first of four reactors and first four charges of catalyst.

There had also been a reduction in the firm commitment for reactors from six to four, but RRB would retain an option to acquire reactors five and six until the end of 2020,.

The changes would have a positive impact on Velocys' near-term cash flow of an estimated $1.1m, but a decrease in revenue of nearly $3m.

Should RRB exercise its option to purchase the two additional reactors the total contract value would return to about $15m.

RRB remained committed to purchase a total of six charges of catalyst in 2019.

'We collaborated with RRB to re-optimise the original agreement to help them complete the biorefinery on their desired timeline,' chief executive Henrik Wareborn said.

'This is an opportunity for us to demonstrate our commitment to delivering for our client the central processing unit in their biorefinery that will convert woody biomass to renewable jet fuel and diesel in Oregon.'

At 9:44am: (LON:VLS) Velocys share price was -0.01p at 3.92p


Related content

Velocys books fist-half loss as it commercialises alternative fuel technology

Alternative fuel technology company Velocys booked a first-half loss as it continued to commercialise its reactor technology.

Pre-tax losses for the six months through June...

Wed, 18/09/2019 - 07:45


Velocys raises £7m from share placement to fund renewable fuel projects

Renewable fuels technology company Velocys said that it had raised £7m from a share placing to partly help fund work on biorefinery project in Mississippi....

Mon, 15/07/2019 - 07:59


Velocys closes out joint venture with Envia Energy

Alternative fuel company Velocys said it had closed out a joint venture with plant owner Envia Energy.

Velocys was a minority equity stakeholder of, and...

Mon, 29/04/2019 - 07:47


Velocys gets reactors back from partner Envia

Alternative fuel group Velocys said it had executed an agreement with Envia Energy that completed the return of ownership of the two reactors to Velocys....

Wed, 27/03/2019 - 08:29


Velocys partner settles claims related to Oklahoma fuel plant

Alternative fuel company Velocys said project partner Envia Energy had settled all claims and disputes related to an operational incident last May at a plant...

Mon, 11/03/2019 - 07:58