Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Velocys agrees new partnership with Japan’s Morimatsu

The AIM quoted group highlights that the arrangement is expected to bring down costs for the planned GTL and biomass-to-liquid (BTL) fuel plants.
deal, business men handshake
Full legally binding arrangements are expected in the coming months

Velocys Plc (LON:VLS) has signed an agreement with Japanese fabrication group Morimatsu which will become the company’s preferred supplier of module engineering and fabrication for its gas-to-liquid fuel plants.

The AIM quoted group highlights that the arrangement is expected to bring down costs for the planned GTL and biomass-to-liquid (BTL) fuel plants.

Today’s news of a memorandum of understanding comes after the two companies worked together for eighteen months on modular designs for a range of plant sizes, and it is expected that the terms agreed in the MOU will be reflected in legally binding documentation within the next few months.

Velocys highlighted that this is the first strategic partnership to be agreed following its strategy review, completed in the fourth quarter of 2016, which sees the group aiming to work with partners so that it can offer customers a “one stop shop” - to deliver a fully integrated and financed plant solutions.

Chief executive David Pummell said: “The potential benefits of further modularisation of smaller scale GTL plants are significant in terms of reduced plant build schedule, reduced risk of delays, lower capex and opex.”

“I am confident that together, Morimatsu and Velocys will continually improve the plant offer to our customers, underpinning both the economics and the delivery of an integrated solution in our renewable fuels and stranded gas markets.”

View full VLS profile View Profile

Velocys Timeline

Related Articles

Offshore-oil-platform.jpg
August 29 2017
Chariot Oil & Gas is working up several prospects on both sides of the Atlantic
oil and gas operations
August 22 2017
The area being targeted by Rose is believed to have very significant potential – Paradox could contain as much as 1.1bn barrels of oil and 2.2tn cubic feet of gas.
Oil rig
April 04 2017
Europa’s CEO, Hugh Mackay said: “The remainder of 2017 will see Europa participate in high impact development and exploration projects for which our share of the costs is now funded”

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use