Velocys Acquires Pinto Energy and Ashtabula GTL Project in Ohio
Accelerating development of the smaller scale gas-to-liquids industry in North America
HOUSTON, June 25, 2014 /CNW/ - Velocys, the technology innovator for smaller scale gas-to-liquids (GTL), today announced the acquisition of Pinto Energy LLC and the Ashtabula GTL project. This represents a significant step in the North American oil & gas industry's adoption of smaller scale GTL and of the Velocys technology, accelerating the development of "shovel ready" projects.
"The acquisition of Pinto Energy, one of North America's leading smaller scale GTL project developers, provides Velocys a key stepping stone for commercial growth," said Roy Lipski, CEO of Velocys. "It will strengthen our route to market, accelerate early adoption, and deepen our ties with suppliers, partners, investors and customers across the entire GTL value chain."
As its first facility, Pinto Energy is developing an approximately 2,800 barrels per day (bpd) plant at an 80 acre industrial site that it owns near the Port of Ashtabula, Ohio, USA. The project will benefit from both access to abundant low-cost natural gas from the Marcellus shale region and substantial existing infrastructure. Initial engineering for the facility is complete and the air permit has been issued. Final investment decision is expected within six to nine months. Future expansions could see installed capacity of 10,000 bpd or more at the site. In addition to Ashtabula, Pinto Energy has a pipeline of smaller scale GTL projects it is seeking to develop throughout North America.
"The entire Pinto Energy team is excited to be joining Velocys. Combining its technology leadership with Pinto's project development capabilities makes for a formidable business," said John Baardson, Pinto Energy's CEO. "Together we are set to accelerate development of smaller scale GTL assets in North America, the time for which has never been better."
Velocys technology remains fully available for license to new customers, and the company is also open to partner with project developers to bring additional smaller scale GTL opportunities to market. "Our primary mandate remains technology leadership in smaller scale GTL. We continue to work with and welcome customers seeking to take advantage of the historic opportunity presented by smaller scale GTL," added Lipski.
Susan Robertson, CFO of Velocys, added, "The acquisition of Pinto Energy affords Velocys the means to further advance smaller scale GTL projects in North America in a fiscally prudent manner. When fully established, this added capability should not only allow Velocys to better serve its customers and accelerate success in its core technology business, but could also generate income in its own right."
For further information, please contact:
Michael Williams, VP, Strategy & Marketing
+1 713 275 5855
+1 713 627 2223
Velocys enables modular gas-to-liquids (GTL) plants to convert unconventional, remote and problem gas into valuable liquid fuels. Systems based on the Company's technology are significantly smaller than those using conventional technology, enabling modular plants that can be deployed cost effectively in remote locations and on smaller fields than is possible with competing systems. Together with world-class partners, Velocys provides complete modular GTL solutions that address an untapped market of up to 25 million barrels of fuel a day.
Velocys plc is listed on the AIM market of the London Stock Exchange (LSE: VLS). The Company has approx. 100 employees with facilities in Houston, Texas, USA and near Oxford, UK and Columbus, Ohio, USA.
About Pinto Energy:
Pinto Energy, LLC is a Houston-based developer of GTL facilities in the United States. The principals of Pinto Energy have been developers of clean energy projects in the US since 1986.
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