A manufacturing partnership has been established between Velocys, a developer of Fischer-Tropsch (FT) reactors that enable smaller scale gas-to-liquids (GTL) plants, and Shiloh Industries, Inc., a North American supplier of engineered metal products to the automotive industry.

The partnership will ensure that Velocys is able to meet the projected growing demand for its smaller scale GTL technology, and continually improve its offering.

Smaller scale GTL plants located near gas sources and product markets show great promise for deriving value from distributed or undervalued accumulations of natural gas, the company says.

Velocys and Shiloh have been working together since 2012 to develop and implement economic, high quality mass-manufacturing capabilities for Velocys’ FT reactors. The two companies have agreed to work together preferentially, and to continue to improve the manufacturing of Velocys’ FT reactors. The partnership will also examine ways to enhance the effectiveness of the whole GTL plant, and explore other opportunities in the oil and gas market.

Shiloh is investing several million US dollars in manufacturing resources, as well as making available a dedicated team of engineers.

“Smaller scale GTL is about to enter a period of rapid growth and our strategy is to continue to leverage world class partners and state-of-the-art manufacturing technology from various industries in order to achieve economic and high quality production”

Together with Shiloh, Velocys’ supply chain can support annual FT reactor orders sufficient for 10,000 barrels per day (bpd) of annual production, and has plans to enable expansion to 40,000 bpd per year in time for order growth.

Matthew Davis, Vice-President of Manufacturing & Supply Chain of Velocys, commented, “Smaller scale GTL is about to enter a period of rapid growth and our strategy is to continue to leverage world class partners and state-of-the-art manufacturing technology from various industries in order to achieve economic and high quality production.”

“Velocys is well positioned to take advantage of the significant market opportunity and, with Shiloh at its side, has the means to supply all expected sales and to maintain its position at the forefront of the market.”