StockMarketWire.com - Renewable fuels company Velocys said it had been informed by Envia Energy that a leak has been detected at its Oklahoma City gas-to-liquids plant, which uses the company's reactor and catalyst technology.

The leak was believed to have originated inside one of the plant's two Fischer-Tropsch reactors.

Velocys, however, said it was confident that the problem was not a result of a flaw in its technology.

Instead, the company said preliminary investigations indicated the root cause of the issue originated with the design of an ancillary system.

Until the issue was remedied, the aim would be to operate the Oklahoma City plant using one reactor.

It was unlikely that the plant would become cash- flow positive in the second quarter of 2018 as previously expected, Velocys said.

'Velocys remains committed to the ENVIA plant and will work with ENVIA to assess the likely repair cost and consequent funding requirements,'it added.


At 3:03pm: [LON:VLS] Velocys share price was -3.47p at 13.33p



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