12th Feb 2019 14:20
LONDON (Alliance News) - Velocys PLC said Tuesday it has amended its licencing contracts with Red Rock Biofuels LLC.
The amendments were made at the request of Red Rock Biofuels and allows it to complete the Lakeview bio-refinery project on a new timeline. The refinery is located in the US state of Oregon.
Velocys will accelerate delivery of the first of four reactors and the first catalyst. Velocys will also reduce its firm commitment for reactors to four from six but Red Rock will retain an option to acquire reactors five and six until the end of 2020.
Velocys expects the amendments to add to its near-term cash flow of about USD1.1 million but a decrease in revenue of about USD3 million. The total value of the contract is USD15 million.
"We collaborated with RRB to re-optimise the original agreement to help them complete the biorefinery on their desired timeline. 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," said Chief Executive Henrik Wareborn.
Shares in Velocys were up 0.6% Tuesday at 3.95 pence each.
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