Velocys

Last month MDN brought you the news that UK-based Velocys, a company that builds gas-to-liquids (GTL) plants has, for now, put a previously planned GTL plant project in Ashtabula, OH on hold (see Velocys Puts Ashtabula, OH Gas-to-Liquids Plant Put on Hold). As a quick reminder, GTL plants convert natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in eastern Ohio. Buried in a press release in early July, Velocys said it had put the Ashtabula project “on hold” because they can’t get investors to pony up money for the project. Later in July the company issued a newsletter in which the reason for the delay seems to have changed. They now say the wax market in North America is not economical–at least right now. The local newspaper in Ashtabula picked up on that statement and is saying the Ashtabula project is on hold “indefinitely”…
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It’s been some time since we’ve heard anything about/from the Ashtabula Gas-to-Liquids (GTL) plant project that Velocys says it will build in Ashtabula, Ohio. As a quick tutorial for those who may not know, GTL converts natural gas, a hydrocarbon, into other hydrocarbons, like diesel fuel, gasoline, solvents and (for Ashtabula) waxes. An abundance of cheap natural gas in the Marcellus/Utica is one of the prime motivators for establishing a GTL plant in the area. But although we’ve heard plenty of talk about such plants, none of them seem to get built–including the Ashtabula plant. There has been progress on the Ashtabula project. Early in 2015 Velocys filed for a permit, which was subsequently granted (see Ohio EPA Issues Final Permit for Ashtabula GTL Plant). Late last year Velocys announced the successful completion of pilot plant tests (see Velocys Makes Progress with Tech Used in Ashtabula GTL Plant). Since that time, we’ve heard nothing. Until now. Buried at the very end of a press release issued yesterday, Velocys said it has put the Ashtabula project “on hold” because they can’t get investors to pony up money for the project. Below is the Velocys announcement, followed by some analysis of what may really be going on…
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MDN Update: Velocys’ former CEO, Roy Lipski, contacted MDN to express concern that our reference to an earlier story about his departure (the way we present it) is misleading and harmful. We apologize. Roy points out that although he left the company, there was, after an investigation, no finding of any wrongdoing. 

UK-based Velocys is the company building the Ashtabula, OH Gas-to-Liquids (GTL) plant to convert natural gas into other hydrocarbons like diesel fuel and even gasoline. In July 2015, Velocys suspended its CEO, Roy Lipski, for potential misconduct (see Velocys GTL Company Suspends CEO for Possible Serious Misconduct). Velocys said at the time there was no financial misconduct involved (which makes you wonder just what did happen), and a month later, in August, Lipski left the company for good. It’s taken a while, but Velocys has finally located a new CEO. Yesterday they announced the appointment of David Pummell as the next CEO…
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The Ashtabula, OH GTL (gas-to-liquids) plant being developed in Ashtabula County, OH is one step closer to reality, according to a press release recently issued by Velocys, the company building the plant. Velocys announced the successful completion of pilot plant tests. Velocys, a UK-based company, maintains a pilot plant in Ohio where they experiment with GTL designs. According to the release, the results of these latest tests are being incorporated into the design of the Ashtabula GTL plant. We’d be remiss if we also didn’t remind you that earlier this year Velocys suspended its CEO, Roy Lipski, for potential misconduct (see Velocys GTL Company Suspends CEO for Possible Serious Misconduct). Velocys said at the time there was no financial misconduct involved (which makes you wonder just what did happen), and a month later, in August, Lipski left the company for good (see Energy Voice, Velocys parts company with suspended chief executive). Apparently the company has recovered from that mishap and is now pushing forward with all speed. It’s great to see them making progress with their technology and with the Ashtabula project…
Read More “Velocys Makes Progress with Tech Used in Ashtabula GTL Plant”

Please see the note on this article for an update about this story.

In September 2013 MDN told you about an innovative new $300 million gas-to-liquids (GTL) plant being built in Ashtabula, OH that will convert Marcellus and Utica Shale gas into chemicals and diesel fuel (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH and More Details on Ashtabula, OH Gas-to-Liquids Plant). The plant was going to be built by a Houston-based company called Pinto Energy using technology created by UK-based Velocys. But last June Velocys announced they were buying out Pinto Energy lock, stock and barrel–including (and primarily for) the Ashtabula GTL plant (see UK-based Velocys Buys Ashtabula, OH GTL Plant). The last we heard about the Ashtabula GTL plant was that the Ohio EPA issued a draft Lake Erie discharge permit in March 2015 and scheduled hearings about the plant (see OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant). Here’s the bombshell: Velocys has just suspended its Chief Executive Officer, Roy Lipski, pending an investigation into “allegations of serious misconduct”…
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In Sept. 2013 MDN told you about a gas-to-liquids (GTL) plant planned for Ashtabula, OH (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH). The plant would convert Marcellus and Utica Shale gas into diesel fuel, lubricants, solvents and waxes. The technology used for the plant is provided by a UK company called Velocys. In June 2014 Velocys bought out the Astabula operation and took up the reigns of the project (see UK-based Velocys Buys Ashtabula, OH GTL Plant). Since then we’ve not heard anything. Until now. Ashtabula Energy, a division of Velocys, has filed for a permit with the Ohio Environmental Protection Agency that would allow the plant to discharge wastewater into Lake Erie. Seems the project is once again up and running…
Read More “New Life for Ashtabula Gas-to-Liquids Plant, Files for Permit”

Last September MDN told you about an innovative new $300 million gas-to-liquids (GTL) plant being built in Ashtabula, OH that will convert Marcellus and Utica Shale gas into chemicals and diesel fuel (see Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH and More Details on Ashtabula, OH Gas-to-Liquids Plant). The plant is being built by a Houston-based company called Pinto Energy using technology created by Velocys. This morning Velocys announced they’re buying out Pinto Energy lock, stock and barrel–100%–including (and primarily for) the Ashtabula GTL plant now under construction…
Read More “UK-based Velocys Buys Ashtabula, OH GTL Plant”