Velocys Live Discussion

Will 07 Feb 2020

Bloomberg: Britain Is Getting Ready to Scale Up Negative-Emissions Technology Velocys’s share price has been up recently. I presume it’s related to this news. Bloomberg: Britain Is Getting Ready to Scale Up Negative-Emissions Technology

spannermonkey 13 Jan 2020

RNS - injunction against Compact agreed a good punt. However, its clear this run up is only based on the imminent planning permission approval and the current hype. The fact remains that behind the application and hype, there is little in the way of engineering or funds.

spannermonkey 07 Jan 2020

F4C Results Hi Donatron. Yes, I caught the announcement. I think you are spot on in that VLS missed out due to the Planning Permission progress stalling. I also note that the funding is for construction and it would be fair to say that construction of the VLS plant is years away so this may count against them. The other award winners are building smaller scale projects, so their awards will go a long way in terms of steel in the ground. Depsite the above, it appears that the VLS sp has suddenly gained alot of momentum, probably off the back of speculation of imminent PP and F4C funding. Lets see if the momentum holds.

Donatron 30 Dec 2019

F4C Results Velocys have missed out on Stage 2 funding from F4C (for now at least). A reminder of the companies up for consideration: [link] Straw to Liquid Biomethane (LBM) Demonstration Plant, Rika Biogas Technologies Ltd Altalto ( Velocys Waste to Jet Fuel Project), Altalto Immingham Ltd Sustainable Aviation Fuel From Waste-Based Ethanol, LanzaJet UK Limited Integrated ATC & F-T Demonstration Plant, Kew Projects Limited Today the government put out this press release: GOV.UK Orange peel, rubbish and fatbergs: the fuels behind the future of green... New funding to boost the advanced fuels industry. The only two projects being funded at the moment are KEW Projects and Rika Biogas. I wonder if this is linked to the outstanding issues around planning permission for Altalto? I note that KEW and Rika have been awarded a share of £6.5 million to build plants. The total pot available was £20 million, so that will leave £13.5m remaining to go to (presumably) one or both of the remaining companies if/when they can get their acts together. Merry Christmas and all and hope you have a prosperous New Year.

spannermonkey 03 Dec 2019

Planning Permission Hi Jammy. Thanks. they will get PP. That I have no doubt. This is a project with international media presence and puts Immingham on the map. I don’t think an answer that isn’t a ‘yes’ would ever materialise, but it’ll take a little more effort to get it to ensure the Councils are watertight with it. As I suspect you know, detailed design is expensive - running into several million pounds. Its a big risk for BA and Shell but in the grand scheme of their respective balance sheets, pocket change. The fact is that this is a first of type for VLS and I just dont think they are the credibility to convince a blue chip to stump up 100m GBP to fund the build, regardless of who ‘sponsors’ the project. VLS are not skilled developers, nor fund raisers. they’ll need to prove themselves somehow first, but how to do this I do not know. SM

JAMMY 02 Dec 2019

Planning Permission It has been very quiet here…Thank you SM for getting back in action. Let’s assume a positive announcement, what is next? Will Shell and BA come up with the moneys needed to get the detailed process design phase started? Velocys does not have the means to fund this effort.

spannermonkey 01 Dec 2019

Planning Permission Well the determination deadline came and went. It does not suprise me really as there are many holes in the Planning application associated with sewer discharge and some heated replies from the EA. Let see what happens in the next few days/weeks.

spannermonkey 18 Nov 2019

RNS - injunction against Compact the sooner this goes under the better. Its like watching a lame animal dying in a ditch. This is a company with a market cap of around 9m, looking to build a project costing north of 500m with little or no experience in developing large scale, complex projects. Its only holding on with the help of the current PR support for environmental issues. BA would be foolish to invest in this project again and Im sure its investment committee, who act on behalf of shareholders, will realise this sooner or later.

spannermonkey 07 Nov 2019

SP bashed This SP is on a slippery slope to insolvency. I honestly cant see how they are going to recover from here.

Ripley94 12 Oct 2019

RNS - injunction against Compact Velocys plc Velocys has signed an agreement with Oxy Low Carbon Ventures LLC (OLCV), to capture CO2 emissions from Velocys’ planned biomass-to-fuels project located in Mississippi USA and store them securely in an underground geologic formation. The company outlines that the ability to transform its flagship facility into a net negative emitter of CO2 is highly advantageous from both an environmental and also a commercial standpoint. Velocys Inc., a wholly owned subsidiary of Velocys plc, has signed an agreement with OCLV, a subsidiary of Occidental whereby OCLV will transport and store CO2 captured from Velocys’ Bayou Fuels facility located in Natchez, Mississippi when it is completed, enabling the production of transportation fuels that have a net negative carbon intensity. The company’s Bayou Fuels project is planned to take waste woody biomass and convert it into transportation fuels such as diesel and aviation fuel. Velocys has developed a biomass-to-liquids (BTL) process that can convert forestry by-products to renewable transportations fuels. This is achieved by combusting solid feedstock at high temperatures to produce ‘syngas’, a mixture of carbon monoxide and hydrogen. By applying the established Fischer-Tropsch process, hydrogen is converted into paraffinic hydrocarbons which are subsequently upgraded through several refinery processes to produce a range of transportation fuels as outlined. Velocys has designed an integrated technical solution that is well suited to carbon capture, usage and storage (CCUS) before it can enter the atmosphere. Additionally, OLCV is well positioned to transport and store CO2 by leveraging its parent company’s expertise in CO2 storage and utilisation. As such, Velocys notes that this combination of technologies can enable the Bayou Fuels facility to produce net negative carbon intensity fuels. As well as the obvious environmental advantages of such a solution, this plan carries a potential commercial advantage given that integrating CCUS into Bayou Fuels will enable the facility to target certain revenue streams including those from the California Low Carbon Fuels Standard and US 45Q tax credits that incentive the installation of carbon capture equipment on industrial facilities. Velocys also notes that the deal with OLCV will not only serve to de-risk the Bayou Fuels project but it can also be replicated at other sites under development which include the company’s UK project which recently submitted a planning application to build the first commercial scale waste-to-jet fuel facility at Immingham in the UK. Velocys is gaining momentum over H2 2019. The company raised £7m of new funds in July, the net proceeds of which will accelerate the development of its facilities in the US and the UK. In September, the company also secured an order with Toyo Engineering Corporation worth an initial US$0.5m to supply its Fischer-Tropsch technology for a biomass-to-jet fuel demonstration facility currently under construction in Japan. With the latest announcement outlining Velocys’ ability to deliver its technology solution in a net negative emissions context, we anticipate the prospect of further positive news flow in Q4. Stock Data Share Price: 1.71p Market Cap: £11.0m Shares in issue: 643.7m Company Profile Sector: Renewable Energy Ticker: VLS.L Exchange: AIM Activities Velocys is a renewable energy company focused on converting forestry by-products into renewable transportation fuels, which when blended with conventional fuels, have the potential to lower significantly harmful emissions and greenhouse gases. Share price performance Source: LSE Past performance is not an indication of future performance. Turner Pope contact details Turner Pope Investments (TPI) Ltd 8 Frederick’s Place London EC2R 8AB Tel: 0203 657 0050 Email: [email protected] Web: www.turnerpope.com Attention is drawn to the disclaimers and risk warnings at the end of this document. This is a non-independent marketing communication. The analyst who has prepared this report is aware that TPI has a relationship with the company covered in this report. Accordingly, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Retail clients (as defined by the rules of the FCA) must not rely on this document. Barney Gray Research analyst

spannermonkey 08 Oct 2019

Red Rock takes shape in Lakeview I must say, based on those stills, there isnt much action on the site, given how long its been since the groundbreaking. I recall Fulcrhum breaking ground a couple of months prior and I have been told that they are almost finished.

JAMMY 03 Oct 2019

Red Rock takes shape in Lakeview Red Rock Biofuels has an operational webcam, with 3 stills, do that we can follow the progress. Have a look at www.redrockbio.com/lakeview-site.html.

Donatron 01 Oct 2019

Red Rock takes shape in Lakeview [link] You can access using a US VPN. For those that don’t have that: LAKEVIEW — Emerging like a phoenix from the ashes of a failed renewable energy project gone awry, Lakeview is already seeing economic benefits from the development of an over $320 million renewable fuels facility now under construction. Once a town dominated by the timber industry, with as many as seven sawmills operating simultaneously, Lakeview has been reduced to just one mill, which itself has curtailed operations several times. Lake County appeared to be shifting toward becoming Oregon’s leading source of renewable energy when almost a decade ago in addition to geothermal and solar projects, Iberdrola Renewables began construction of a $100 million biomass facility in Lakeview. However in 2011 the project came to a sudden halt, and the promise of as many as 250 jobs in a community of only 2,000 quickly disappeared with it. Around the same time that the Irberdrola project collapsed, Red Rock Biofuels was founded in Colorado with the intent of creating renewable fuels facilities by converting woody biomass and forest waste products into low-carbon fuels. By 2013 Red Rock had set its sights on Lakeview, thanks in large part to the groundwork and studies that had already been completed by Iberdrola. Rail, gas resources Lakeview had an operating railroad line, a nearby natural gas pipeline that could be tapped, extensive studies already completed on the feasibility of a renewable energy plant in the area, and a surplus of woody biomass from forest thinning projects and wood bi-products to sustain a facility. After nearly seven years of extensive negotiations, contracts in place to provide fuel to the military and private companies, and $245 million in bonds approved by the state of Oregon in January – construction is well underway on Red Rock Biofuels facility. Much of the infrastructure is now in place on the south end of Lakeview off Kadrmas Road, and with two job fairs recently completed for an estimated 100 jobs that need to be filled for facility operations, transportation, and materials collection; Red Rock is edging closer toward becoming a reality. Housing crunch Across Lakeview housing has gone from abundance to scarce in only a couple years, RV parks and hotels are at capacity, and the community is being as accommodating as possible for the influx of construction workers building Red Rock Biofuels. The 26-acre site is expected to be operational by Spring 2020, and once at full capacity capable of generating 15 million gallons of low-carbon jet fuel, diesel fuel, and naphtha. The facility not only means jobs currently in its construction, but a likely population boom as the community simply does not have enough able-bodied jobseekers to fulfill the demand for labor. That means a need for new housing, more kids in schools, and spouses likely opening boutique businesses. Plus, there are the tax benefits – the Town of Lakeview collecting $200,000 and the County receiving $46,000. A portion of the Town’s tax benefits will also be dedicated to funding local museums. Team effort “Red Rock being here would not have happened without the help of the Regional Solutions team,” said Lake County Commissioner Brad Winters. “Kadrmas was a county road, the town took that in. Red Rock had to work with private landowners to take it out of the urban growth boundary. There were state lands and agencies there, and it took everyone being at the table to move this project forward.” Red Rock will operate utilizing a method of synthetic fuel production first engineered by Germany during World War II known as the Fischer-Tropsch process. By heating woody biomass such as tree limbs, sawdust and pine needles to 1800 degrees in an oxygen-free environment, the materials convert to a gas that is placed in long hydrocarbon chains. Those chains are then run through a hydrocrack and cut into fuel. The process is already utilized around the world on coal and natural gas, but Red Rock’s approach of using waste products is a new concept that will help with forest health by reducing fire fuels and reduce carbon footprints that adversely impact climate change. Around 136,000 tons of waste will be processed at the facility annually, creating millions of gallons of fuel to be sold to Southwest Airlines, FedEx, and the U.S. military. ‘Turning point’ “This bio-refinery marks a turning point,” said Red Rock CFO Jeff Manternach at last year’s groundbreaking ceremony. “It will keep our forests healthy by using waste biomass before it burns up. It will help this mill town continue to be a place where things are made. Critically, it will provide renewable low-carbon fuels to combat climate change.” Overseeing construction of the facility is Terry Freeman, a veteran of the construction industry who has seen just about everything in the business, but referred to Red Rock as, “one of the harder jobs I’ve ever worked on.” A new railroad spur is being built that will unload fuel onto rail cars, as well as a six-inch natural gas pipeline to tap into the Ruby Pipeline near Lakeview. The gasification facilities are being pre-fabricated off-site and will begin arriving on skids next month. Concrete work is expected to be completed by December. Despite some hiccups, including a redesign of the gasification area and a flooding of the site following last spring’s exceptionally wet weather, the facility is on track to be finished by March and operational by April. Flood, cold “We are cruising through right now, we don’t have a crystal ball but we’ve built contingencies into the schedule for weather and other factors,” said Freeman. “Last winter it flooded, so we have taken precautions so that won’t happen again, but now we are going to have to deal with cold weather. We are trying to mitigate issues, but right now nothing is stopping us.” Staying on schedule hasn’t always been easy. There have been long weekends and evening work crews to stay on Freeman’s critical path schedule, and it has been common for concrete pours to start as early as 2 a.m. “We are working 70 people right now, that number is just going to keep going up as we head into the winter,” added Freeman. “There are only so many tradesmen in Lakeview, I try to keep the local guys working on smaller stuff that can fit their schedules, which takes pressure off the big contractors. The community has been incredibly supportive.” Local contractors Additionally, Freeman praised Anderson Engineering & Surveying in Lakeview for joining the project to handle civil work and surveying on site. “Local contractors, from electricians to concrete, have been instrumental in getting this built,” said Freeman. With other projects ongoing in the region, including solar developments, Red Rock has pulled in crews from Klamath Falls and Medford to work on the site. “The crews have been great, we really lucked out and got some great crews here,” added Freeman. “They have fought through stuff and held schedules, and we are actually accelerating schedules now.”

Donatron 20 Sep 2019

Velocys secures order for biorefinery licence from Toyo This can only be positive in my opinion. I don’t think it is going to lead to any meaningful profit, but it provides cash, covers some of the fixed costs and therefore delays the next placing. Additionally it gives us more data and gives everyone involved some training and experience. It’s a definite side-hussle before something happens in Mississippi or Immingham, but it all helps.

JAMMY 20 Sep 2019

Velocys secures order for biorefinery licence from Toyo I agree, this is more a restart after the ENVIA setback. The demonstration facility the consortium is building is tiny: 20 l/day (www.toyo-eng.com/jp/en/company/news/?n=483). It is even smaller than the facility Velocys operated with TRI in North Carolina which was about 160 l/day.