Velocys acquires Pinto Energy and Ashatabula GTL project

25th Jun 2014 13:36

Small scale gas-to-liquids (GTL) technology innovator Velocys has acquired Pinto Energy and the Ashtabula project.The acquisition is expected to "stimulate early market adoption" of its technology in North America by quickening the development of "shovel ready" GTL projects.Pinto Energy is currently producing 2,800 barrels per day (bpd) at an 80 acre industrial site that it owns near the Port of Ashtabula, in the US. A final investment decision is expected within six to nine months. Future expansions could see installed capacity of 10,000 bpd or more at the site. Pinto Energy has a pipeline of smaller scale GTL projects it plans to develop throughout North America.Chief Executive Officer Roy Lipski said: "The acquisition of Pinto Energy, one of North America's leading smaller scale GTL project developers, provides Velocys a key stepping stone for commercial growth. "It will strengthen our route to market, accelerate early adoption, and deepen our ties with suppliers, partners, investors and customers across the entire GTL value chain."As of 09:23 the share price had dropped 2.4% to 220p.WS