StockMarketWire.com - Velocys said revenue fell to £0.2m (H1 2016: £0.5m) in the six months ended 30 June 2017.

HIGHLIGHTS

Key milestones at ENVIA Energy's Oklahoma City plant, the first smaller scale, commercial gas-to-liquids plant in the world include:

- Production of first finished, saleable products

- Velocys' reactors and catalyst performing in line with performance requirements at commercial scale

- The company increased its equity share and voting rights with no cash or other consideration provided, following the exit on 28 September 2017 of NRG from the JV (post period end)

- Key capacity milestone expected to be reached during October 2017 (post period end)

- New strategy as a renewable fuels company providing, with partners, economically attractive biorefineries to produce premium quality renewable jet and diesel fuel

Consistent progress towards our first biorefinery in the US, with our strategic partners:

- Partnerships announced with Morimatsu and TRI

- Selection of IHI E&C for FEL-2 engineering study

- Invitation by US Department of Agriculture to advance to Phase II application for a loan guarantee of up to $200m

- Appointment of SMBC as the lender of record

- Fundraise of £10m (before expenses)

- Reshaping of the company, following completion of its primary development programme, to deliver the demands of the new strategy (post period end)

- John Tunison appointed as Interim CFO (post period end)

- Industry partnership formed, including British Airways, aimed at waste to renewable jet fuel plants in the UK (post-period end)

- Cash at period end £13.8m (31 December 2016: £18.7m)

- H1 2017 cash outflow £4.9m (H1 2016: £13.6m, H2 2016: £5.4m)

CEO David Pummell said: "As Velocys the renewable fuels company, we have made considerable progress in our strategy implementation and subsequent restructuring of the business over the first part of the year.

"Successive operational milestones have been reached at ENVIA Oklahoma and we have made steady progress towards developing our first biorefinery in the US. The success of the Velocys Fischer-Tropsch system at ENVIA validates our technology at a commercial scale, and it will be this system that, we will take forward in our future biorefineries, subject to securing further funds."




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