Velocys Share Discussion Threads

[chemicalengineer] 03/7/2018 12:42

My concern about the leak is lack of news.

The micro channel reactor operates around 300 degrees centigrade. The cooling fluid boils on the other side of the channel. I would have to assume also in channels.

I could hypothesise that this could be a scaling problem. Maybe caused by poor water treatment.

Maybe a hot spot formed as a result and caused accelerated corrosion.

Maybe the scale was bad that a tube blocked.

Finding a leak could take a while with lots of channels to test.

You would then just weld closed the channel with the leak.

But no update for this length of time...

[deutsch3] 03/7/2018 12:32

Are we due a progress report on the 'leak'? - There must be a reasonable view of the cause and consequences? - It is not good enough for only a closed group to be in the know.

[gac141] 03/7/2018 12:28

A very lengthy article covered by numerous associations and 99.9% of it positive. I might have guessed the Grim Reaper would find the needle in a haystack. Ha ha...

[gac141] 03/7/2018 11:25

hxxp://www.biofuelsdigest.com/bdigest/2018/06/26/epa-lifts-renewable-fuels-in-2018-2020-proposal-industry-welcomes-volumes-warms-on-refinery-waiver-imapct/

Great news for Velocys surprised not to see this on their twitter page.

Good news on the RFS proposals. Cellulosic Fuels get the biggest % increase !!!
This is recognition that plants will be coming on line in the next 2-3yrs.
ed
Trump might understand the jobs potential behind plants like Natchez, Red Rock and Fulcrum. And jobs can mean votes.

[mikemine] 03/7/2018 11:24

Cousin Paul, another poster referred to, presumably by the CEO, the relating of the past 12-18 months progress and more importantly what to expect in the next period. Unfortunately he didn't mention what was said in that part. Do you recall what was outlined for the next period?

[mikemine] 02/7/2018 11:49

If its Envia's problem then we are back to my previous assumption, on another thread, that the problem doesn't stem from VLS's equipment and therefore potentially will cost VLS zero or maybe only a minority share of the cost. After Fluky's post on the same thread it seemed that the assumption was incorrect. If VLS's plant is at fault surely they would be the ones to correct it leaving them free to inform us of developments. I can't see how its both Envia's problem to deal with leaving our COO unable to comment and VLS's plant needing correcting, by presumably VLS, leaving VLS able, and possibly requiring it to inform it's shareholders of developments.

[cousin paul] 01/7/2018 19:00

Hi fluky. That is correct. My words not the COOs. It is my inference based upon him saying that he couldn't give any more details as Velocys was a minor shareholder. While not ideal for us as shareholders, I am supportive of the approach he was taking. Due process will resolve it.

[fluky] 01/7/2018 18:41

MM: I don't think they Schubert or the chairman said this, as I read Cousin Paul's post #3: "It is Envia that needs to solve the problem and inform all parties when it has done so (IMHO)."

Cousin Paul: could confirm this? Thanks.

PS Cousin Paul started a new tread called "Velocys 2018 AGM." That is why you had a hard to time locating it.

[mikemine] 01/7/2018 18:19

Hi Fluky, thought it was in a new release. Found it in the original RNS. Does look a bit more serious for VLS. Wonder why they said it was Envia's case to call (paraphrasing) unless it turned out to be an engineering fault rather than a VLS design problem which they originally signalled as a possible problem. Guessing now. We'll just have to wait as usual.

[mikemine] 01/7/2018 18:11

Thanks Fluky. Can't find the news release. Can you give a link please

[fluky] 01/7/2018 16:05

Regarding the leak, Schubert gave new information: "He indicated that the problem was related to a cooling system." The news release stated: " that a leak has been detected that is believed to have originated inside one of the plant’s two Fischer-Tropsch (FT) reactors." That means that one of the cores received less cooling since there are only connections which can leak at the feed side. In this case, the reactor temperature runs up which could damage the catalyst but also the physical integrity of the reactor core. Regarding the responsibility: the reactor assembly, including the cores and the cooling systems, are designed by Velocys and assembled by Ventech. That is why this leak is not a blip...

[mikemine] 01/7/2018 15:39

It seems to me the leak issue is out of VLS’s hands and could possibly be resolved at no cost to them if it is faulty equipment or design from the plant engineering side. I have no idea if this is true but, as the plant is not that old the engineering side may have to rectify faults within a certain period, a guarantee if you like. From the post above, it doesn’t look as if the IIs nor the BOD are particularly concerned about it. As it caused a 30% collapse in the share price within a couple of hours of announcement, you would think Management would send us some reassurance about it’s significance though.,If there is a cost it will be shared proportionately between the various stakeholders one would imagine so how much can a new cooling system cost?

I would like the poster to have told us more about plans for the next period as he mentioned them. Perhaps I can track him down and ask him.

The post was upbeat in a restrained way and looks as if VLS is not in any kind of distress that the share price might suggest. It looks very oversold.

[mikemine] 01/7/2018 15:34

Found by Surprised on LSE.Its from another bb, don't know which.There's more on the share buyback as well.

As a 'long-term' shareholder (since 2016), with a substantial holding, I felt it was time to meet the board members and get a better feel for the people who are spending my money. The AGM had about eight PIs in attendance. Ervington was represented (Lisa) whom the board clearly recognised. I was the first PI to arrive. John Tunison introduced himself to me in the reception area and we chatted for a while before board members arrived and he went off for a pre-AGM meeting. The AGM meeting itself was friendly and 'informal', albeit within a 'formal' structure. Introductions by the Chairman (Pierre Jungels), then a summary of the last 12-18 months and where we are headed in the next period by the CEO (David Pummell). The COO (Paul Schubert) gave us his short update on Envia. There was no big song and dance by the PIs at the AGM over the Envia issue, nor was there by the BoD (understandably I think) given our relationship with Envia. It is Envia that needs to solve the problem and inform all parties when it has done so (IMHO). It will get sorted.
Red Rock Biofuels - The $6m received is being put to work on reactors and catalyst etc. No issues were identified.
US renewable fuels plant (Natchez, Mississippi) - Good progress is being made in line with what has already been published.
UK waste to jet fuel project - I found the update on this to be the most interesting part of the whole AGM. Why? Simple answer - Shell. DP and Neville Hargreaves (who had just flown in from the US yesterday morning to attend the AGM (as well as the post AGM management meeting I suspect) where both really excited at the involvement of Shell, confirming that they have been engaged for some time (in the background). It appears that Shell sent the main technical person from the Qatar operation to Envia to do due diligence (pre-leak I'm sure). Evidently, he was very impressed. Anyway, chatting with DP after the formal part of the meeting I could see he was really positive about Shell and was in fact off to meet with them later on.
The Q&A session was not overly lengthy or particularly challenging. There were a number of technical questions around fuel and catalyst. One question related to R&D, and whether we should be continuing to improve the offering. The chairman and CEO said that being a smaller company we need to take a balanced approach. We have a very good offering and should take this to market, which is exactly what they are doing. Improvements will come as appropriate further along the journey, as the company grows.
My apologies if this update is long. I am trying to give a sense of my impression of the meeting.

[imjustdandy] 01/7/2018 07:36

We are way undervalued now. Current price should appear to be a real bargain.

[chemicalengineer] 01/7/2018 07:01

Thanks for taking time to attend and the report back, Cousin Paul.

I am sure I was not the only person waiting with baited breath for some information to come out from the AGM.

[fluky] 01/7/2018 00:30

Thanks very much, Cousin Paul.

The ENVIA issue remains a tricky one. There are 3 partners left, WasteManagement, Ventech Project Investments which is owned by the founder of Ventech, but kept outside the bankruptcy of Ventech Engineers, that built the ENVIA plant. I am sure that if Velocys loan to ENVIA would be converted in equity, Velocys would be a major shareholder. Schubert should have been asked who will fix the leak in the cooling system.

[dogwalker] 30/6/2018 21:09

Well many thanks indeed cousin paul : as thorough an account as could be expected.

[dogwalker] 30/6/2018 15:48

Thanks cousin paul. Do you have a third comment ? What else was there of interest I wonder ?

[cousin paul] 30/6/2018 14:48

Paul Schubert, the Chief Operating Officer gave a short update on Envia. He indicated that the problem was related to a cooling system. He reiterated that Envia was continuing to make and sell fuel. He confirmed that, as Velocys was a minor shareholder in Envia, he was unable to comment any further on the issue at the AGM.

[cousin paul] 30/6/2018 14:26

I attended the Velocys AGM yesterday. This is my first comment.

[fern5] 30/6/2018 08:23

I am intrigued

[kirk 6] 30/6/2018 04:46

What do you make of this? ------------ ------ -------- ----- ------------ --------------- 11. To authorise the Company to purchase its own shares

[fluky] 29/6/2018 21:45

I didn't go, but gac went. So I want to hear his impressions and whether or not the reactor leak was mentioned.