Velocys Eyes Alliance to Build Mini-GTL

UK-based small scale gas-to-liquids (GTL) pioneer Velocys said January 17 it has signed a memorandum of understanding (MOU) to establish a strategic alliance with the Jiangsu, China-based subsidiary of Japanese fabrication company Morimatsu.

Morimatsu will be Velocys' preferred supplier of module engineering and fabrication services for its plants, which it hopes will drive down the cost of its GTL and biomass-to-liquids (BTL) plants. 

Velocys said it and Morimatsu had worked together for the past 18 months on the modular design of the Fischer-Tropsch (FT) section for a range of plant sizes. Terms of the MOU are to be reflected in legally-binding documentation within the next few months, said Velocys, adding that Morimatsu has five fabrication plants in Japan and three in China.

Small-scale GTL can mean as little as 5,000 b/d production or less; new projects of 30,000 to 140,000 b/d are no longer being considered anywhere.

Mark Smedley