4th Jul 2018 10:27
LONDON (Alliance News) - Renewable fuel company Velocys PLC said Wednesday that the second reactor at its plant in Oklahoma, the US, has been modified to avoid leakage.
Velocys shares jumped 10% to 12.00 pence each on the back of the news.
The company said that following a rectification of a design flaw in the ancillary coolant system by the plant's operator Envia Energy LLC, the second reactor has been operating successfully and without incident.
In May, the company had reported a leak within one of the plant's two Fischer-Tropsch reactors which led the plant crippled, operating just on one reactor.
"The company's position remains that the root cause of the leak in the first reactor was a design flaw in the ancillary coolant system and not the result of any flaw in the core Velocys FT technology," Velocys said in a statement on Wednesday.
The first reactor is still undergoing analysis by ENVIA's insurance company as it processes a claim.
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