Gas to liquids specialist Velocys has narrowed its full year 2015 pretax loss to £21.1m, down from £23.3million with its new chief executive looking to activation of its major US project as a significant milestone.
Revenue increased to £2million, from £1.7million before exceptional items. Cash at year end was £37.7 million compared with £59.8million in 2014.
The UK-based company is at the forefront of smaller scale gas-to-liquids (GTL) that turns natural gas or biomass into diesel, jet fuel, waxes and base oils.
Velocys said it had made good progress on Envia Energy’s GTL project in Oklahoma City with mechanical completion expected by mid-2016 with fabrication of all the modular process units already completed, including the Velocys reactors.
It said healthy opportunities are in the pipeline for smaller scale GTL projects, with several new ones undergoing paid engineering studies, although timescales on some projects has been extended.
Recently appointed chief executive David Pummell said: “From my first few months as CEO I am hugely impressed by the quality of the team and the momentum the company is making on a number of fronts.
“Our technology is differentiated and is being rolled out at ENVIA, and the next challenge is to determine exactly where we must focus commercially.
Pummell said that even with current commodity prices the economics of smaller scale GTL plants are attractive in certain markets.
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