Small scale gas and biomass to liquid fuel specialist, Velocys plc (VLS.L), has been signed a deal with ENVIA Energy’s EPC contractor, Ventech Engineers, covering the installation of process modules, related piping and ancillary equipment, for ENVIA’s Oklahoma City Gas to Liquid (GTL) plant.
ENVIA Energy is a Joint Venture, made up of Waste Management Inc. (NYSE: WM) Ventech Engineers International and Velocys. It was formed in March 2014 to produce renewable fuels and chemicals from biogas and natural gas using GTL.
The facility is be located adjacent to Waste Management’s East Oak landfill site.
The project will provide a commercial reference plant for the use of Velocys’ technology and Ventech’s modularisation with a combination of landfill gas/natural gas as feedstock and will deploy a number of Velocys’ full scale Fischer-Tropsch reactors. It will also utilise Waste Management’s landfill gas recovery and clean-up techniques.
According to Velocys its GTL process involves two main operations: the production of syngas via processes such as steam methane reforming or autothermal reforming followed by the Fischer-Tropsch (FT) process to convert the syngas into paraffinic hydrocarbons.
Velocys' smaller scale FT technology addresses this second stage of the GTL process. The products are said to be able to be blended with naturally occurring crude oil to produce a wide range of high quality finished products including ultra-clean diesel, kerosene (jet fuel), naphtha, bases for synthetic lubricants and waxes
The company said that it has has made available to ENVIA Energy up to $12 million of further funding as part of a stakeholder capital contribution, following which it expects that this commercial reference plant will be fully funded through construction, completion and operation.
Of the$12 million committed, $3 million is Velocys’ equity contribution and $9 million will be provided as a loan secured on the project.
Velocys added that the terms of the loan provide it the opportunity to gain a greater equity share of the project and greater influence in the commissioning, start-up and operations of the plant.
The funding will be accommodated from the Company’s balance sheet, which as at 31st December 2015 had £38 million of cash. This loan will have a 10% coupon, and the Company has the opportunity for early repayment of the loan after the plant is operational.
The company said that the abrication of the modular process units by Ventech Engineers at its fabrication facility in Pasadena, Texas is essentially complete.
The manufacture of Velocys’ full-scale reactors and the initial catalyst charge to be used at the plant were also said to be complet. Mechanical completion of the GTL plant is expected in mid-year 2016.
ENTRADE, which manufactures a micro generator that uses gasification technology to generate onsite heat, power and cooling from a wide variety wastes including waste and food, has expanded its UK operations near Liverpool.
A five month test program to capture carbon emissions from the municipality operated Klemetsrud waste to energy plant in Oslo, is being undertaken by Aker Solutions, a Norwegian supplier of products, systems and services to the oil and gas industry.
In Austria the University of Vienna has opened a new test facility as part of its on going research into the use of a twin fluidised bed gasification process to recover high value fuels and gases from wastes.