LONDON (Alliance News) - Velocys PLC Wednesday said it is set to expand its current portfolio by progressing a waste-to-liquids project after commissioning an engineering study to be carried out.
Velocys is currently focused on smaller scale gas-to-liquids, providing technology that allows natural gas or biomass to be turned into premium products such as diesel, jet fuel, waxes and base oils.
However, the company has commissioned FTSE 250-listed engineering firm Amec Foster Wheeler PLC to carry out an engineering study to look at the viability of kick-starting a new waste-to-liquids project in the UK.
The proposed project would take hundreds of thousands of tonnes per year of post-recycled waste, destined for landfill or incineration, and convert it into clean-burning, sustainable jet fuel and diesel.
"We continue to see economic opportunities around the world with both natural gas and other feedstocks. We are excited by the prospect of being involved in finding a successful route to a waste-to-liquids plant incorporating our technology in the UK, where a combination of gate fees and fuel credits aid plant economics," said Chief Executive David Pummell.
Velocys has partnered up with a company affiliated with its largest shareholder, Ervington Investments, but the company was not named.
"We have strong customer interest, because this would be one of the few commercial options for making sustainable jet fuel. Velocys and Ervington have a mutual strategic interest in delivering a commercial scale waste-to-liquid solution and see this UK opportunity as meeting our joint criteria for success," said Pummell.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
