StockMarketWire.com - Velocys, the technology innovator for smaller scale gas-to-liquids (GTL), said its customer, Red Rock Biofuels, has been awarded a $70 million grant to construct a biomass-to-liquids (BTL) plant incorporating Velocys Fischer-Tropsch (FT) technology.

Red Rock Biofuels, a Fort Collins, Colorado based subsidiary of IR1 Group LLC ("IR1"), has extensive experience constructing and operating commercial-scale biofuels facilities. This new BTL plant in Oregon will convert some 170,000 tons per year of forestry and sawmill waste into approximately 1,100 barrels per day of ultra clean transportation fuels.

The $70 million grant is being awarded under phase 2 of the US Defense Production Act Title III Advanced Drop-in Biofuels project. In July 2013, Red Rock Biofuels was awarded $4.1 million under phase 1 of the same programme to conduct detailed engineering for the BTL facility, which is now complete.

Successful execution of Red Rock's project in Oregon is expected to result in revenues to Velocys in excess of $15 million during construction, and an additional $30 million or more over the life of the facility. Red Rock is targeting final investment decision on the project within 6 months, with construction lasting about 18-24 months.




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