Velocys announces construction complete at ENVIA’s GTL plant
21 September 2016
Velocys plc announced that construction of ENVIA Energy’s GTL plant in Oklahoma City is now complete. On-site loading of catalyst into the Fischer-Tropsch reactors has been completed by Velocys with support from its partner Mourik.
Pre-commissioning work, including hydro-testing of the lines and vessels, and an inspection process, is substantially complete. The commissioning plan will ensure that each process system in sequence is working robustly, safely, and within specification. Early commissioning steps have begun.
In February 2016, as part of a stakeholder capital contribution, Velocys made available to ENVIA a senior loan of US$9 million, secured on the project. Additional equity ownership units and voting rights were granted to the Company as part of the terms of the loan agreement and Velocys sought and gained greater operational management involvement in the project.
Velocys has been supporting the EPC contractor, Ventech, in leading and executing the planning for the commissioning, start-up and operation of the plant.
Drawdown on the loan to ENVIA will begin in Q4 2016, with the final drawdown expected in Q1 2017. The majority of the drawdown will fall in the current financial year. Velocys will pursue options for the early repayment of the loan once the plant is operational. The company does not currently anticipate any additional funding needs from Velocys for the project.