Velocys has acquired Pinto Energy and the Ashtabula GTL project. Pinto Energy is one of the leading project developers of smaller scale GTL in North America.
As its first facility, Pinto Energy is developing an approximately 2,800 barrels per day (bpd) plant at an 80 acre industrial site that it owns near the Port of Ashtabula, Ohio, USA. The project will have access to abundant low-cost natural gas from the Marcellus shale region, as well as benefitting from substantial existing infrastructure.
Initial engineering for the facility is complete and the air permit has been issued. 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. In addition to Ashtabula, Pinto Energy has a pipeline of smaller scale GTL projects it is seeking to develop throughout North America.
The acquisition of Pinto Energy will allow Velocys to further stimulate early market adoption of its technology in North America by accelerating the development of “shovel ready” GTL projects. It also provides complementary skills and business synergies from which to improve both the breadth and quality of the Company’s service offerings to customers.
Velocys technology remains fully available for license to new customers. Furthermore, Velocys is also open to partner with project developers to bring promising smaller scale GTL opportunities to market.
Roy Lipski, CEO of Velocys, 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.”
“Our primary mandate remains technology leadership in smaller scale GTL; Velocys continues to work with and welcome customers seeking to take advantage of the historic opportunity presented by smaller scale GTL.”
John Baardson, CEO of Pinto Energy, said, “The entire Pinto Energy team is excited to be joining Velocys. Combining its technology leadership with Pinto’s project development capabilities makes for a formidable business. Together we are set to accelerate development of smaller scale GTL assets in
North America, the time for which has never been better.”