Velocys (VLS) narrowed its adjusted operating loss for 2015 to £22.2m, from £23.2m a year earlier. The financial returns, although obviously relevant, take a back seat to the continued development of ENVIA Energy's gas-to-liquids (GTL) plant in Oklahoma City. The facility, part of a joint venture, will act as a "commercial reference plant" for Velocys' proprietary GTL technology. The group said that matters were progressing well, with mechanical completion expected by mid-2016 and fabrication of the modular process units already complete.
Further funding of up to $12m (£8.6m) was made by Velocys to ENVIA at the start of this year, which should enable funding of the facility through to completion and initiation. Around $9m of the sum was provided as a loan secured on the project, the terms of which provide Velocys the opportunity to gain a greater equity share of the project and greater influence in the commissioning process. Elsewhere, the group announced delays through to commercialisation on its contracts with Red Rock Biofuels, which is developing a biomass-to-liquids plant in Oregon. However, a final investment decision is still expected this year.
Velocys shed another 5 per cent of its market value on the release of its full-year figures. The shares are now down by 76 per cent over the past 12 months. New chief executive David Pummell has his work cut out improving investor sentiment prior to the group entering the commercial phase of its US operations, but existing cash resources should prove sufficient to see the group through to activation across the Atlantic.