Velocys' reactor technology not at fault for Oklahoma plant's internal leak
Renewable fuels company Velocys on Wednesday said an internal leak at its ENVIA Energy power plant in Oklahoma City was not due to faults in its core Fischer-Tropsch (FT) reactor technology.
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The internal leak in an FT reactor was announced in May and caused the reactors removal from operation in order to undergo analysis from Velocys and ENVIA’s insurance company.
The AIM -traded company has identified the ancillary coolant system as the root cause of the leak, with modifications now in place to counteract the system’s design flaw.
With the modifications in place, the ENVIA plant’s second reactor has now successfully operated the same cycle through which the first reactor was operating when the leak was detected.
A statement from Velocys said: "This successful operation of the second reactor supports the findings of the ENVIA RCA (Root Cause Analysis) investigation. The company's position remains that the root cause of the leak in the first reactor was a design flaw in the ancillary coolant system and not the result of any flaw in the core Velocys FT technology."
The ENVIA plant was the first site to utilises Velocys' technology and is a joint venture gas-to-liquids plant which uses landfill gas and natural gas in order to generate power.
Velocys said it will now work with ENVIA to assess the likely repair costs and funding requirements associated with the leak.
As of 0944 BST, Velocys’ shares were up 8.28% at 11.80p.