Velocys plc (Plain City, Ohio; www.velocys.com) has raised £52 ($85) million (excluding expenses) for its work in the area of smaller scale gas-to-liquids (GTL). The funds were raised through an oversubscribed equity placing, priced at a slight premium to the market price. The new funds will be used to build upon the company’s recent successes and maintain strong commercial momentum, helping to further accelerate adoption of Velocys technology following the start of construction of its first commercial project.
New projects announced in the past three months include the construction of a commercial plant using Velocys technology in Oklahoma, through a joint venture with Waste Management, NRG Energy and Ventech Engineers International, formed to develop GTL plants in the U.S. and other select geographies; the acquisition of a leading project developer of smaller scale GTL in North America, together with its 2,800 barrel-per-day (bpd) Ashtabula GTL project in Ohio, U.S., and; a $70-million endorsement of the Company’s customer Red Rock Biofuels, received as a grant from the U.S. Department of Defense to construct a 1,100 bpd biomass-to-liquids plant in Oregon, U.S., using Velocys technology.