Velocys shares tumble despite Ohio facility launch

23rd Oct 2023 08:43

(Sharecast News) - Shares in Velocys tanked on Monday despite the sustainable fuels technology company hitting a key milestone with the launh of a new 52,500 square-foot facility in Ohio.

The facility, located in Plain City, will house the reactor core assembly and catalysis operations which form a critical part of the production process for sustainable aviation fuel (SAF), the company said in a statement.

Construction of the site began in mid-2022, to which Velocys contributed $2m, with the developer paying the remaining $8m.

"The new site enables the consolidation of Velocys' catalysis services, microchannel reactor core assembly and technology licensing under one roof," the company said. It is expected to have the capacity to meet projected orders until 2028.

"It is another critical piece in the jigsaw to go alongside the support we are receiving from regulatory and policy initiatives in all of our core markets," said Velocys chief executive Henrik Wareborn.

"To move from planning permission to completion in two years is a testament to all those involved and takes us a big step closer to enable our clients to produce SAF with ultra-low carbon intensity at commercial scale."

Despite the good news, the stock was down 15% at 1p by 0846, taking the year-to-date loss to 79%.