Share Price.com
Market Update Economic Events Directors Deals Commodities Prices News Market Movers

Velocys customer Red Rock Biofuels cuts size of firm reactor order

Tuesday, 12th February 2019
Alternative fuel company Velocys said it had agreed to a series of amendments in its licensing contracts with Red Rock Biofuels in order to speed up completion of a planned bio-refinery.

The changes were related to RRB's license of Velocys Fischer-Tropsch reactors and proprietary catalyst for the RRB biorefinery under construction in Lakeview, Oregon.

They included Velocys accelerating the delivery of the first of four reactors and first four charges of catalyst.

There had also been a reduction in the firm commitment for reactors from six to four, but RRB would retain an option to acquire reactors five and six until the end of 2020,.

The changes would have a positive impact on Velocys' near-term cash flow of an estimated $1.1m, but a decrease in revenue of nearly $3m.

Should RRB exercise its option to purchase the two additional reactors the total contract value would return to about $15m.

RRB remained committed to purchase a total of six charges of catalyst in 2019.

'We collaborated with RRB to re-optimise the original agreement to help them complete the biorefinery on their desired timeline,' chief executive Henrik Wareborn said.

'This is an opportunity for us to demonstrate our commitment to delivering for our client the central processing unit in their biorefinery that will convert woody biomass to renewable jet fuel and diesel in Oregon.'


At 9:44am: (LON:VLS) Velocys share price was -0.01p at 3.92p



Story provided by StockMarketWire.com

Related Shares: Velocys

Share Search
Share Search Share Search

Visit the Share Search.
Share Search

Share News
Share News



SharePrice.com will do their best to ensure the quality of the information displayed on this site, but all information is provided as-is, free of charge. We cannot be held responsible for any loss, material or otherwise, due to incorrect information found here. UK data supplied by NBTrader and Digital Look. Share Prices are at least 15 minutes delayed.