Velocys to focus on biofuels, announces progress at Envia plant

By Erin Voegele | July 06, 2017

Veloycs plc has announced the production of the first finished saleable products from Envia Energy’s gas-to-liquids (GTL) plant in Oklahoma City, which is the commercial reference plant for Velocys’ technology. The company also recently stated it plans to focus on the conversion of woody biomass to fuels in the future.

On June 22, David Pummell, CEO of Velocys issued a statement indicating Fischer-Tropsch (FT) product was being produced at the Envia facility. At that time, he said that operational data from the FT units meets the performance requirements at commercial scale and that the company was expecting the production of first salable product shortly. Pummell also noted that Envia will continue to ramp up production to full capacity over the coming months.

"Our new strategy is for Velocys to be at the heart of building plants that convert woody biomass to high specification renewable diesel and jet fuel for the U.S. market, our primary focus market,” Pummell continued. He noted that California consumed an estimated 300 million gallons of renewable diesel last year. By 2030, approximately 1 billion gallons of renewable diesel is expected to be required to meet state obligations.

"The company is transforming—moving away from being 'a FT technology company' to being Velocys, 'the renewable fuels company,’” Pummell said. “The time is now right for Velocys to take forward a bold growth strategy and I am confident that we are the right company, with the right technology, at the right time to enter this attractive market and deliver sustainable growth. In five years' time I want Velocys to be known as the company that delivers renewable fuels plants to its customers, cost effectively and at low risk. Much work still needs to be done to successfully deliver our strategy but we continue to work towards our goal with confidence and in a focused and professional way."

On June 30, the company announced the production of the first finished, saleable products from Envia Energy’s GTL plant in Oklahoma City. According to the company, FT products are now being fractionated to produce renewable waxes, diesel and naptha.

Velocys said the on-site operations team has completed the debugging of several units of the plant, with production expected to targeted operational capacity over the coming months.