Definitive agreement signed with Morimatsu. Velocys, Morimatsu and other partners working to further reduce plant costs and optimise engineering designs.
Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce that it has signed a definitive agreement covering its strategic alliance with Morimatsu (Jiangsu) Heavy Industry Co., Ltd., a subsidiary of Morimatsu Industry Co., Ltd. (Morimatsu). This agreement confirms the previously announced Memorandum of Understanding between Velocys and Morimatsu; Morimatsu will be Velocys’ preferred supplier of modular design, engineering and fabrication services supporting the Velocys offer of delivering fully integrated, fully financed, cost effective and operations-ready plants to its customers.
Velocys and Morimatsu are now extensively working together with Velocys’ other alliance partners, to further reduce the costs, optimise engineering designs, accelerate pace and reduce overall risk, for delivering multiple GTL and biomass-to-liquids (BTL) plants to its chosen markets.
For further information, please contact:
David Pummell, CEO
|+44 1235 841 700|
|Numis Securities (Nomad and joint broker)
|+44 20 7260 1000|
|Canaccord Genuity (Joint brokers)
|+44 20 7523 8000|
|Camarco (financial communications & PR)
|+44 20 3757 4983|
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.
Velocys is the company at the forefront of smaller scale gas-to-liquids (GTL), providing the bridge connecting stranded and low value feedstocks such as natural gas, landfill gas or biomass with markets for premium products such as renewable diesel, jet fuel and waxes.
With its partners, Velocys aims to deliver the most economically compelling conversion solution; a fully integrated offer that can be deployed at scale into the growing, attractive markets on which it focuses. Velocys technology, protected by several hundred patents in over 30 countries, is specifically designed for smaller scales, combining super-active catalysts with intensified reactor systems. Standardised modular plants can be deployed readily in a wide range of locations, and Velocys’ capabilities and extensive experience deliver a proven route to operation.
Velocys plc is admitted to trading on the AIM market of the London Stock Exchange (LSE: VLS). The Company has a strong, multi-disciplinary staff operating from its commercial centre in Houston, Texas, USA and technical facilities near Oxford, UK and Columbus, Ohio, USA. First product has been produced at its commercial reference plant, which is located adjacent to Waste Management’s East Oak landfill site in Oklahoma City.
Morimatsu is specialised in the design, engineering and fabrication of modular processing facilities for the oil and gas, petrochemical, fine chemical, pharmaceutical, power and metallurgical industries.
With its design and fabrication expertise, Morimatsu provides total solutions for its clients; from process equipment to packages and modular plants. Many international first-class companies have qualified Morimatsu and established long-term strategic cooperation relationships with the company.
The headquarters of Morimatsu is located in Gifu, Japan, while the process equipment and packages are mainly fabricated in three plants in China. Morimatsu offers a combination of competitive Chinese labour costs and Japanese quality and management systems.