Velocys has entered a joint venture with Waste Management,
NRG Energy and Ventech Engineers to develop gas-to-liquids
(GTL) plants in the US and other select geographies.
The joint venture will pursue the development of multiple
plants utilizing a combination of renewable biogas (including
landfill gas) and natural gas. Waste Management intends to
supply renewable gas and, in certain cases, project sites.
All four members will work exclusively through the JV to
pursue the intended application (GTL using renewable gas,
optionally in conjunction with natural gas) in the US,
Canada, United Kingdom and China.
As its first commercial facility, the JV is targeting a plant
to be located at Waste Management's East Oak landfill site in
Oklahoma. Detailed engineering for this first project
is being completed, while
final draft permitting documents for the facility have been
The JV intends making a final decision to proceed on this
first plant this year. Development activities for additional
are expected to
Velocys holds a minority interest in the JV. Its principal
financial commitment to the JV arises after a decision is
made to proceed with the first project
, which the company says it
believes it can comfortably accommodate from its current
"We're delighted to be providing proven FT technology
to, and participating
as a partner with Waste Management, NRG and Ventech, in the
development of projects that promise to unlock the potential
of landfill gas and biogas through the production of
cost-effective renewable fuels and chemicals," said Roy
Lipski, CEO of Velocys.
Velocys and other members each have the right, but not
the obligation, to participate in the funding of additional
is a milestone in the
development of GTL in the US," said Lipski. "Smaller-scale
GTL has the potential to achieve significant installed
capacity in North America a long time before any large scale
conventional facility comes on stream."