Velocys, the technology innovator for smaller scale gas-to-liquids (GTL), is pleased to announce that its customer, Red Rock Biofuels, has been awarded a $70m grant to construct a biomass-to-liquids (BTL) plant incorporating Velocys Fischer-Tropsch (FT) technology.
Red Rock Biofuels, a Fort Collins, Colorado based subsidiary of IR1 Group LLC (IR1), has extensive experience constructing and operating commercial-scale biofuels facilities. This new BTL plant in Oregon will convert some 170,000 tonnes per year of forestry and sawmill waste into approximately 1,100 barrels per day of ultra clean transportation fuels.
The $70m grant is being awarded under phase two of the US Defense Production Act Title III Advanced Drop-in Biofuels project. In July 2013, Red Rock Biofuels was awarded $4.1m under phase one of the same programme to conduct detailed engineering for the BTL facility, which is now complete.
Successful execution of Red Rock’s project in Oregon is expected to result in revenues to Velocys in excess of $15m during construction, and an additional $30m or more over the life of the facility. Red Rock is targeting final investment decision on the project within six months, with construction lasting about 18-24 months.
Roy Lipski, CEO of Velocys, said, “We are very pleased to see the Red Rock project moving ahead. This $70m government grant is set to make the Oregon project happen and will act as a catalyst for early adoption of BTL in North America. We are proud to be at the leading edge of this important market.”