Velocys announces amended agreement with Red Rock Biofuels

By Erin Voegele | February 18, 2019

On Feb. 12, Velocys announced it has agreed to a series of amendments in its licensing contracts with Red Rock Biofuels LLC regarding Fischer-Tropsch reactors and proprietary catalyst the company is supplying to the RRB biorefinery under construction in Lakeview, Oregon.

According to Velocys, the amendments are at RRB’s request and will allow the company to complete its biorefinery on the desired timeline.

Under the amended agreement, Velocys said it will accelerate the delivery of the first of four reactors and the first four charges of catalyst. Velocys said it will also reduce the firm commitment for reactors from six to four, but RRB will retain an option to acquire reactors five and six until the end of 2020 for delivery at the existing contract price. RRB remains committed to purchase a total of six charges of catalyst this year.

“We collaborated with RRB to re-optimize the original agreement to help them complete the biorefinery on their desired timeline,” said Henrik Wareborn, CEO of Velocys. This is an opportunity for us to demonstrate our commitment to delivering for our client the central processing unit in their biorefinery that will convert woody biomass to renewable jet fuel and diesel in Oregon.”

RRB broke ground on its Lakeview facility in mid-2018. The facility is expected to convert 136,000 tons of wood biomass per year into approximately 15.1 million gallons of advanced drop-in biofuels, including jet, diesel and naptha fuels. The plant incorporates three technologies, gasification, Fischer-Tropsch and hydroprocessing.

In May 2018, Velocys announced it had received a notice to proceed action to commence manufacturing the Fischer-Tropsch reactors and catalyst it is supplying to the Lakeview facility. The company said its role will be as a licensor for its technology to the project.