In order to meet this milestone and support continued operations, Velocys has extended the loan arrangement it has made available to ENVIA by $0.7 million to $13.4 million. All other terms of the loan, which has a 10% coupon, remain unchanged.

Biorefinery. Earlier this month, signed a site option agreement with Adams County in the State of Mississippi for its first US biorefinery to be located in Natchez, Mississippi.

Velocys has been offered economic development incentives from Adams County estimated to be worth the equivalent of $42 million. The project expects to qualify for additional incentives worth up to $15 million, provided via Mississippi’s Advantage Jobs Act and other statutory tax incentives. These incentive packages would reduce the company’s future tax liabilities and are subject to Velocys meeting certain minimum requirements for capital investment and local employment opportunities.

Velocys has also received commitments from Adams County worth approximately $4 million (relating to the land and upgrades to the site) and $1 million site upgrade commitments from local utility suppliers, further increasing the attractiveness of the site.

The analysis lays the foundation for future biorefineries: Velocys is maintaining its list of other advantaged sites in the region, which could host plants with capacities totalling 100 million gallons over the next 10 years. Velocys remains in close contact with the economic development officials in these other States regarding the locations and timing of future renewable fuels facilities.

This announcement completes one of the work packages required for the U.S. Department of Agriculture (USDA) loan guarantee application announced in June 2017. Site permitting activities have now begun.