Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Velocys Plan to "Build the Business" - Gas-to-Liquids Plants


Published on

Velocys is the manufacturer of gas-to-liquids (GTL) plants that convert natural gas (a hyrdocarbon) into other hydrocarbons, like diesel fuel, gasoline, and even waxes. This PowerPoint presentation lays out the Velocys plan to get the company growing. GTL plants have not (so far) taken off in the U.S. Velocys hopes to change that. They specialize in small GTL plants.

Published in: News & Politics
  • Your opinions matter! get paid BIG $$$ for them! START NOW!!.. 
    Are you sure you want to  Yes  No
    Your message goes here
  • Secrets to making $$$ with paid surveys... ★★★
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

Velocys Plan to "Build the Business" - Gas-to-Liquids Plants

  1. 1. Building the business …roadmap to sustainable growth December 2016
  2. 2. • Commissioning underway at ENVIA Energy’s Oklahoma City GTL plant • Building from a position of strength • New business model increases control over delivery - building scale and pace through partnership • Focus on material opportunities in growing and attractive markets with the lowest risk • Realistic strategy – we deliver in partnership …the timing is now right! Building the business 2
  3. 3. Achievements • Commissioning underway at ENVIA Energy’s Oklahoma City GTL plant • Recognised as the technology market leader • Attractive economics from licensing model • World class technology and operations team • Engineering capability is scalable with partners • Robust major shareholder support Today’s scorecard Positioned for growth Challenges • Commercial traction of opportunities and control of delivery • Projects require significant capital • Exploit our first mover advantage • Continue driving down overall plant costs to access broader & deeper markets • Organisational scale-up “...well positioned, but we must now adopt a new business model that drives greater control and focus.” 3
  4. 4. Velocys has the answer to critical needs... Economic bridge connecting stranded and low value feedstocks to markets needing renewable and premium products Supply of wax – a premium speciality product Supply of premium renewable diesel fuel Monetisation of stranded gas Monetisation of landfill gas Supply of premium renewable jet fuel 4 Prevention of gas flaring
  5. 5. Fundamentals that drive the new Velocys 5 Four strategic themes • Become the market leader • Develop and deliver projects with partners • Revenues from reactor, catalyst, operations and licence • Selectively inject early capital • Build and enhance technology, engineering and operations capabilities • Work seamlessly with partners • Drive lowest cost • Partners with complementary resources and capabilities • Drive access and growth in material, high-return markets • Create scale and repeatability at pace • Fully integrated, financed, cost- effective and operations-ready plant solution Fundamentals that drive the new Velocys 5 Strategic alliances – world class partnerships Business model – take control but remain “capital- light” Leverage differentiated capabilities – natural owner of valuable assets The offer – “one stop shop”
  6. 6. • US • Canada: route to global stranded gas • Asian markets Robust platform to enter and exploit other markets in the world Business framework 6 • Gasification technology integration • Offshore flare gas offer • One-stop shop offer • Offer ownership • Leverage large and complementary partners • Lowest cost • Stranded gas • Landfill gas • Woody biomass • Renewable jet fuel • Renewable diesel fuel • Wax Next 5 years in focus High value geographic markets Strategic enablers Strategic solution development Robust revenue model Premium products Low cost low risk feed stocks • Main income from reactor, catalyst, operations, licence • Continue to license to third parties where it makes strategic sense
  7. 7. Market focus
  8. 8. High value and material markets – next 5 years in focus Premium quality renewable fuels and wax from landfill gas USA Renewable fuels and speciality chemicals from landfill USA 8
  9. 9. Premium quality renewable fuels from woody biomass High value and material markets – next 5 years in focus Supply of premium renewable fuels & carbon credit trading opportunities USA California Renewable diesel markets Renewable jet market 9 Asian market development
  10. 10. Premium quality FT waxes from stranded gas reserves in Western Canada High value and material markets – next 5 years in focus Supply of premium speciality products Monetisation of stranded gas Canada 10
  11. 11. High value and material markets – next 5 years in focus Development of integrated GTL solution for offshore flared gas Prevention of gas flaring offshore Initially entering extended well test (EWT) market in North America Longer term, accessing deployment on-board floating production, storage and offloading (FPSO) vessels for deployment in Asia and Latin America 11
  12. 12. Substantial short-term potential volume and growth Large addressable markets 5 year addressable market 10 year addressable market 10 20 Renewable diesel, US 20 10 Renewable jet, US 15 5 Landfill gas-to-wax, US 7 4 Stranded gas-to-wax, Canada Indicative number of plants 62 29 Total 12 10
  13. 13. Implementation
  14. 14. Targeting strategic partnerships to drive delivery Mobilisation – immediate focus 3 Strategic business partners “….we are now developing our “go-to-market” plans to unlock strategic deals” 2 EPC partners 2 Strategic technology partners 1 Modularisation & fabrication partner 14
  15. 15. Driving simplification at every possible opportunity Mobilisation matrix Technology EPC Wax Canada Renewable jet US Renewable diesel US ModularisationandfabricationCo GasificationCo Asian banks Cornerstone finance TradingCo RefinerCoRefinerCo AirlineCo Stranded gasowners N.America Feedstock N.AmCo.sbiomass Stranded gasinpipe Customer Refiners Traders Wholesalers Airlines Speciality customers N.American Asian 15
  16. 16. Key implementation activities • Implement market entry plans • Finalise “the one- stop-shop offer” • Sign strategic partner deals • Position the organisation to scale • Establish top- priority projects • Finalise plan and budget Mobilisation • Implement first renewable fuels and wax plants in US and Canada • Develop integrated offshore GTL solution • Develop material Asian market opportunities Market entry • Rollout multiple plants in target markets • Mobilise to exploit stranded gas markets in SE Asia and Africa • Enter offshore GTL market Growth 16
  17. 17. • Realistic markets create substantial, cash-generative business — An average of 1-2 plants per year over next 5 years would be sufficient to establish Velocys in its key markets and generate sustainable business • Strategic partners with need for material volume drive faster adoption and investment options • Further upsides not included: — Recovering oil prices broadening GTL market — Blend volume of bio-jet in jet fuel pool exceeds 3% — Incentive schemes (e.g. Californian) extended to other states and products 17 Deliverable business – next 5 years Foundation for a significant business is being developed