LONDON (Alliance News) - Synthetic fuels producer Velocys PLC Wednesday said it has acquired Pinto Energy LLC, which is developing a gas-to-liquid project in the US state of Ohio.
The Texas-based company said it has acquired Pinto for an initial consideration of 955,977 shares in Velocys and a further sum of 1.1 million shares at the successful financial close of the gas-to-liquid project in Ohio. The deal also includes five-year warrants over up to USD750,000 worth of shares, which will be granted for each additional project in the Pinto Energy pipeline that achieves financial close by the end of 2015.
Pinto Energy is a developer of smaller scale gas-to-liquid projects in North America. Velocys said Pinto is developing a plant which will produce around 2,800 barrels per day at an 80 acre industrial site in Ohio. The project will have access to low-cost natural gas from the Marcellus shale region as well as benefiting from substantial existing infrastructure, the company added.
Velocys, which has offices in Ohio and the UK, said initial engineering for the facility is complete and the air permit has been issued.
In addition to Ashtabula, Pinto Energy has a pipeline of smaller gas-to-liquid project it is seeking to develop throughout North America.
Velocys said the acquisition will allow it to further stimulate early market adoption of its technology in North America by accelerating the development of "shovel ready" gas-to-liquid projects.
Velocys shares were quoted down 1.3% at 224.75 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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