The plant, which is designed to be profitable on a standalone basis, will be located at Waste Management’s East Oak landfill site in Oklahoma, US. It will provide a commercial reference site for the Velocys technology and will deploy a number of Velocys’ full-scale Fischer-Tropsch reactors.

Purchase of major equipment has begun, with construction and commissioning to be complete, and the plant entering full commercial operation, in less than 24 months.

The JV has entered into all major contracts needed for the project, including technology license, supply and service agreements with Velocys (at market rates), EPC contract with Ventech (lump sum for the modules), land lease with Waste Management, and gas purchase and product offtakes. Further detail concerning the project will be released during a ground-breaking ceremony scheduled for later in the year.

As a minority interest holder in the JV, Velocys’ investment in the East Oak plant is limited to some $5 million, drawn down over the course of construction.