Velocys Share Discussion Threads

[fluky] 26/11/2015 15:48

The technical achievement is impressive and indicates a continuous improvement of the technology. As was said before, there is no doubt about the quality of the technology. The issue is selling that outstanding technology. Hence, I'd rather see announcements about FIDs than about technical achievements.

[gac141] 26/11/2015 14:15

Pr spin indicates it has no substance. This has every substance and is testimony to the great work from the team. In a technical world scientists are looking for efficiencies of 5-10% 50%+ is a stagering achievement.

[tongosti] 26/11/2015 13:47

Hate to spoil the party but the release is simply a PR spin. Again!

[gac141] 26/11/2015 13:14

Interview now working..

[gac141] 26/11/2015 10:00

Here is the BRR Media interview with Paul Schubert.

[visionon] 26/11/2015 09:13

thanks GAC. This is the kind of news we need as we enter a lower oil price era. More please !

[gac141] 26/11/2015 08:05

Nice piece of PR this morning. Looks like Velocys are working very hard behind the scenes!
Velocys PLC

26 November 2015

News release

Velocys plc

("Velocys" or "the Company")

26(th) November 2015

Technology optimisation, improving plant economics

Velocys plc (VLS.L), the company at the forefront of smaller scale gas-to-liquids (GTL), is pleased to announce the successful completion of pilot plant tests that demonstrate significant process intensification, increasing capacity and productivity and improving commercial plant economics.

The tests:

-- Demonstrate that continuous improvements over the last 18 months have resulted in a greater than 50% increase in capacity, without changing the commercial catalyst formulation or the reactor design.

-- Prove that superior yields of high value liquid hydrocarbon products can be maintained while simultaneously achieving these high productivities. Carbon monoxide conversions of 70% per pass, or 91-92% overall, are achieved concurrently with a C5+ selectivity (the percentage of the products that are liquid rather than low-value gaseous hydrocarbons) of about 90% and a methane selectivity as low as about 5%.

-- Show industry-leading yields of the highest value, longer chain hydrocarbons (such as those used in the production of speciality chemicals) at high productivities. This increases the potential revenue from a plant with a given input, enabling plant operators to access higher value markets and reducing the impact of oil price volatility.

-- Employed a new start-up protocol enabling the pilot plant to reach target operating conditions in eight hours; a very significant improvement. As a result, this will improve further the economics of commercial plants and increase their availability.

Advances made at the pilot plant have already been incorporated into the design of the 4,800 barrel per day Ashtabula GTL plant that the Company is developing in Ohio.

Dr Paul Schubert, Chief Operating Officer of Velocys explained the significance of the latest Velocys pilot plant results in a BRR Media webcast, which can be viewed here.

Dr Paul Schubert, Chief Operating Officer of Velocys, said:

"These results are a reflection of the tremendous progress that our in-house technical teams have made and are continuing to make, quietly in the background, in what has been a delivery-focused year for the business.

"Velocys technology has now been tested for over 24,000 hours at the pilot and demonstration scale and for over 1.3 million hours in the laboratory. We enter our commercial phase with a technology that has been developed with rigour and thoroughness and in which we, our clients and partners can have every confidence."

[visionon] 25/11/2015 22:01

Abengoa, who were selected earlier this year to build Fulcrum's $200m plant biofuel plant have just filed for bankruptcy protection in Spain according to WSJ. They have been teetering for months.

[visionon] 24/11/2015 17:36

Logically a new CEO would start January 1st i.e. "2015 was nothing to do with me"

So I'm hoping for an announcement in December. It would be great challenge for an EPC type CEO given that capex needs addressing (and projects delivering) if the IEA decade forecasts for oil prices prove to be accurate. GAC can wax all day about speciality products but this company sits in the O+G sector and we also need Red Rock type schemes and they can't be subsidised for ever by the US Gov. Thus the current SP…IMHO

[haydock] 24/11/2015 11:01

Velocys is set for the next phase of its journey now that the technology is proven and build of the commercial reference plant is underway

[meijiman] 24/11/2015 10:54

The non-exec change today has a bit of colour on where the company is at -but not alot. He must have been party to getting rid of the ceo.That search is ongoing.

[gac141] 24/11/2015 10:33

10:01
Buy Speciality Products and the importance o...
investmaster
It has become increasingly relevant that Velocys are going to produce high value speciality products like Hard and Medium Waxes together with various types of Solvent. We are not just a Diesel / Jet fuel producer.

WTI has fallen from $120 to just above $40 per barrel – However Low melt Waxes have maintained their premium prices over the last 4 years and have not declined from circa $225 per barrel. It costs us very little to produce these products yet can sell at a big uplift!

Since the late 1990’s production of Waxes in the U.S Has dropped by about 60% and yet imports into the US from Asia has risen and now the US imports over 70% of the Waxes they use… mainly from China, Japan and other parts of Asia. Ok you say but there is a problem globally with production of Waxes. Asian Refiners have changed their production technologies and are now producing lower quantities of wax and other products all the while the requirement for Waxes is growing globally especially in Asia.

Waxes are expected to become “rare and expensive” going forward globally.

Users will need to find new sources of wax — and alternative solutions to produce it. We may be that answer....

Shale gas is a distributed phenomenon and smaller scale GTL and it delivers value
Low feedstock gas can be utilised to produce these high value products… Ashtabula… It sounds like FID is very near term at the plants. They may already be producing there???
Ashtabula could be a game changer with 4800bpd anticipated initially with future expansion to 10,000 bpd…

They already have Letters of support from major lender & equity investor. They have the water permit set up and have identified gas suppliers (almost certainly from the Marcellus) and off takers.

What seems clear to me is that the message coming from Velocys is that they are not just a Diesel /Jet fuel producer and many seem to have overlooked this and it is reflected in the low share price.

What I look forward to is seeing is these speciality products being produced and also when we get to see some of these “Projects not currently in the public domain” plus those that are, making it to the market.

When we do we will see a very different share price in my opinion.

[beeezzz] 23/11/2015 12:24

Well that rise didn't last long heading in the wrong direction again...marvellous.

[tongosti] 20/11/2015 16:11

That's what I call timing:)

[tongosti] 20/11/2015 15:48

Crazy I know - why do you think I am treating VLS with exceptional care?!

[meijiman] 20/11/2015 15:31

'fundamental catalyst' haha very good rather amusing for a Friday.

[tongosti] 20/11/2015 15:10

Bailed out today after adding for the past two days. Volumes have stalled and that's why I did it. For reasons which have been explained to death here + very low trading liquidity levels, this is very much a trading stock (as opposed to buy and hold which taught me a lesson here with VLS) until a fundamental catalyst enters the picture. Good weekend all!

[tongosti] 19/11/2015 15:09

Let's hope you are right. Just added to my position today.

[gac141] 19/11/2015 15:03

Plus there are numerous currently undisclosed projects some of which are ahead of disclosed project in the public domain today....

[gac141] 19/11/2015 14:24

Don't be daft guys the East Oak Plant will generate by H1 2016 and Red Rock £15m over the next 18 months when FID on the plant is finalised. I hear FID is very close.

[fluky] 19/11/2015 14:04

Good news...but no revenues to be expected before 2018!
Unless the " several projects yet to make it into the Public Domain" turn out to be real and fast moving, Susan will have to raise new money.

[tongosti] 19/11/2015 12:01

As am a shareholder there as well, I asked investor relations of BA (well, iag) whether they are still committed to the waste-to-fuel project they announced on their website last April. I was told that they are still very much committed to it as they see great potential in it. Certainly very good news considering the uncertainty surrounding GreenSky and Solena going bust.

[gac141] 19/11/2015 11:43

10:45 iii
Buy Important Comment by Numis
investmaster
Here is another significant comment.

"Velocys is focussed on working with potential customers who are looking to harness to economics of GTL where low cost feedstocks exist (biomass, flared gas or landfill gas), in isolated markets to fuel domestic energy demands, and where opportunities exist to produce high value speciality products (such as waxes and lubricants with have decoupled from WTI oil prices and retain strong economics)"

Susan said the speciality waxes and lubricants that they make are such quality they attract very high values per barrel and that customers are clamoring for them...