LONDON (Alliance News) - Shares in Velocys PLC dropped on Monday as the company said ENVIA suspended operations at the Oklahoma City gas-to-liquids plant to undertake a review of strategic alternatives.
Shares in the renewable fuels company were trading down 13% at 5.45 pence each.
Velocys said that ENVIA, the plant's operator, decided to stop operations due to financial circumstances following a leak at the plant in May. ENVIA's investigation into the leak identified the ancillary coolant system as the root cause, Velocys said.
ENVIA has been working to "assess the likely funding requirements of the plant to achieve positive cash flows", Velocys said. The company said it "fully" supports the decision to suspend operations at the facility.
Chief Executive Officer David Pummell said: "The decision to suspend plant operations was taken after careful consideration by the boards of ENVIA and Velocys and with our ENVIA joint venture partners. We are working with ENVIA to find a strategic alternative that will realise the maximum value potential inherent in the facility."