ENVIA Energy believes that fuel produced at its Oklahoma City plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard in the US
Velocys plc (VLS.L), the renewable fuels company, is pleased to announce that ENVIA Energy believes that fuel produced at its Oklahoma City gas-to-liquids plant has met the necessary requirements to be submitted for qualification under the Renewable Fuel Standard (RFS) in the US. As a result, the facility has submitted a certain number of RIN (Renewable Identification Number) credits to the US Environmental Protection Agency’s (EPA) registration system.
The process used at ENVIA makes a drop-in fuel that is made from renewable biogas and pipeline natural gas. Such a process is approved by the EPA for the highest value RINs under the RFS as it delivers the most significant greenhouse gas reductions called for under the programme. Throughout 2017 the type of RIN (D7) that would be produced at ENVIA, based on its specific feedstock mix, traded above $2.4/gallon. For a fuel produced exclusively from renewable feedstock, such as at the biorefinery Velocys is developing in Mississippi, this equates to RIN values above $4/gallon throughout 2017.
Subject to confirmation of the pathway compliance it is expected that all necessary processes to trade the generated D7 RIN credits for maximum value will be completed in Q1 2018. A significant contribution of the revenues of the plant could be derived from the ongoing sale of these RINs.
David Pummell, CEO of Velocys, said:
“This is a major achievement and milestone for both ENVIA and Velocys. On confirmation of the pathway compliance, these will be the first RIN credits generated by our technology and also the first associated with a Fischer-Tropsch process on landfill gas. This in itself represents a significant commercial validation of our technology.
“The US renewable fuels market is a high value growth market with incentives at both Federal and State levels in the form of tradeable fuel and carbon credits. Today’s news demonstrates that Velocys has the capability to secure renewable fuel incentives that will enable Velocys to unlock the attractive renewable fuels market.”
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For further information, please contact:
David Pummell, CEO
+44 1235 838 621
Camarco (financial communications & PR)
+44 20 3757 4983