15 May 2018 – ENVIA plant update
Disappointing news that a leak has been detected at the ENVIA Oklahoma City plant. It is believed to have originated inside one of the plant’s two Fischer-Tropsch reactors. However, Velocys is confident that the issue is not a result of a flaw in the core Velocys FT technology. Based on the preliminary investigation by ENVIA and supported by Velocys personnel, the root cause of the issue is likely to be caused by the design of an ancillary system. A solution is being sought to return the plant to full operation with minimal loss of revenue.
Until the issue has been remedied, the aim will be to operate the Oklahoma City plant using one reactor. It is unlikely that the plant will become cash flow positive in Q2 2018 as previously expected. Velocys remains committed to the ENVIA plant and will work with ENVIA to assess the likely repair cost and consequent funding requirements.
An update will be provided in due course.