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Velocys detects leak at Oklahoma City plant
Renewable fuels company Velocys detected a leak at its Oklahoma City plant on Tuesday, believed to have originated inside one of the plant's two Fischer-Tropsch reactors.
Based on preliminary investigations by ENVIA, the plant's operator, Velocys believes the root cause of the issue was not a result of a flaw in its core Fischer-Tropsch technology and, in fact, originated with the design of an ancillary system.
Velocys, as licensor of the Fischer-Tropsch technology, began working with ENVIA, as well as third-party consultants, to verify the source of the leak and develop a solution to return the plant to full operation with minimal loss of revenue.
"Until the issue has been remedied, the aim will be to operate the Oklahoma City plant using one reactor. It is unlikely that the plant will become cash flow positive in Q2 2018 as previously expected. Velocys remains committed to the ENVIA plant and will work with ENVIA to assess the likely repair cost and consequent funding requirements," the firm said on Tuesday.
As of 1130 BST, Velocys shares had tumbled 18.75% to 13.65p.