Velocys Forms JV to Develop GTL Plants

LONDON--Velocys PLC (VLS.LN), which offers smaller scale gas-to-liquids solutions, Monday announced that it has entered a joint venture with Waste Management (WM), NRG Energy (NRG.LN), and Ventech Engineers International to develop gas-to-liquids, or GTL, plants in the United States and other select geographies.

MAIN FACTS:

-Joint Venture will pursue the development of multiple plants utilizing a combination of renewable biogas and natural gas.

-Waste Management intends to supply renewable gas and, in certain cases, project sites.

-All four members will work exclusively through the joint venture to pursue the intended application in the United States, Canada, United Kingdom and China.

-As its first commercial facility, the joint venture is targeting a plant to be located at Waste Management's East Oak landfill site in Oklahoma, U.S..

-Joint Venture intends making a final decision to proceed on this first plant in 2014.

-Development activities for additional facilities are expected to commence shortly.

-Velocys holds a minority interest in the joint venture.

-Shares at 0934 GMT up 11 pence, or 6.4%, at 182 pence, valuing the company at GBP213 million.

-Write to Tapan Panchal at [e-mail]

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