11 Mar 2019 07:00
News release
Velocys plc
("Velocys" or "the Company")
11 March 2019
Insurance settlement reached for ENVIA incident
Velocys plc (VLS.L), announces that ENVIA Energy, LLC has executed an agreement with Liberty Surplus Insurance Corporation and Zurich American Insurance Corporation to settle all claims and disputes related to the incident at the ENVIA plant announced on 15 May, 2018. The settlement amount totals $2.3 million and has already largely been paid to ENVIA with the final payment of $330,000 due to ENVIA on 25 March 2019. The agreement also removes any potential for current or future liability on part of ENVIA or Velocys.
In addition to its minority equity stake and secured lending to the ENVIA project, Velocys has been the technology licensor to ENVIA for the central processing unit (2 micro-channel FT reactors) which was designed to convert landfill gas to liquid fuels and which has been operational at the Oklahoma site during the last two years. Velocys believes that the objectives of this demonstration plant have now been met. This will allow Velocys to focus its resources on developing its commercial waste to jet fuel plants in the US and the UK as well as supporting its licensee in Oregon.
Henrik Wareborn, CEO of Velocys, said:
"We are pleased that ENVIA has reached this positive agreement with respect to the insurance settlement.
"The ENVIA demonstration plant has provided Velocys with an invaluable experience and track record, and creates a good platform for the company to move forward. It now allows us to focus our efforts on progressing with the development of our Bayou Fuels biorefinery project in Mississippi and our Altalto Immingham UK waste-to-jet-fuel project in the UK, working with our strategic partners to produce commercial scale volumes of renewable fuels."
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For further information, please contact:
Velocys Henrik Wareborn, CEO |
+ 44 1235 838621 |
Numis Securities (Nomad and joint broker) Alex Ham Stuart Skinner Jamie Lillywhite Tom Ballard | +44 20 7260 1000 |
Canaccord Genuity (Joint broker) Henry Fitzgerald-O'Connor Ben Griffiths | +44 20 7523 8000 |
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Camarco (UK financial communications & PR) Billy Clegg Georgia Edmonds Tom Huddart | +44 20 3757 4983 |
Scoville Public Relations (Velocys US public relations) John Williams | +1 206 625 0075 #1 |
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
www.velocys.com