LONDON (Alliance News) - Gas-to-liquids technology company Velocys PLC said it has made USD12.0 million available to its joint venture Envia Energy, as it announced the final major contract for Envia's commercial reference plant in Oklahoma has been signed.
Velocys said it had made USD12.0 million available to Envia Energy, of which USD3.0 million is its equity contribution and USD9.0 million is a loan secured on the Oklahoma City project. It said it expects this will be sufficient to fully fund Envia's gas-to-liquid plant through construction, completion and operation.
Envia Energy is a joint venture among Velocys, Waste Management Inc, NRG Energy Inc and Ventech Engineers International LLC . The companies are aiming to produce renewables fuels and chemicals from biogas and natural gas using gas-to-liquid technology.
Velocys added the project was continuing to hit milestones, with Envia Energy's EPC contractor Ventech Engineers signing the final major contract, which covers the installation of process modules, related piping and ancillary equipment at Envia's plant.
Mechanical completion of the gas-to-liquid plant is expected in the mid-year 2016.
Velocys shares were up 8.0% at 40.50 pence on Friday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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