StockMarketWire.com - Alternative fuel company Velocys said project partner Envia Energy had settled all claims and disputes related to an operational incident last May at a plant in Oklahoma.

The insurance settlement amount of $2.3m was agreed with Liberty Surplus Insurance Corporation and Zurich American Insurance Corporation.

Velocys had taken a minority equity stake and provided secured lending to the Envia project.

It was also the technology licensor to Envia for the central processing unit designed to convert landfill gas to liquid fuels, which had been operational at the Oklahoma site during the last two years.

'We are pleased that Envia has reached this positive agreement with respect to the insurance settlement,' chief executive Henrik Wareborn said.

'The Envia demonstration plant has provided Velocys with an invaluable experience and track record, and creates a good platform for the company to move forward.'

'It now allows us to focus our efforts on progressing with the development of our Bayou Fuels biorefinery project in Mississippi and our Altalto Immingham UK waste-to-jet-fuel project in the UK, working with our strategic partners to produce commercial scale volumes of renewable fuels.'




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