New GTL venture to develop global GTL plants via landfill gas, biogas
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 submitted.
The JV intends making a final decision to proceed on this first plant this year. Development activities for additional facilities are expected to commence shortly.
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 balance sheet.
"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 future plants.
"This project 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."
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