Velocys plc has executed an agreement for the sale of a commercial Fischer-Tropsch (FT) reactor to a customer in the Commonwealth of Independent States (CIS).

The 175 bpd reactor, with accompanying catalyst, will be installed in a small GTL plant processing natural gas into synthetic crude, and is intended to be delivered in the second half of 2014. Along with the accompanying engineering services, the transaction is expected to generate over $2 million of revenue to the Company during 2014-15.

Roy Lipski, CEO of Velocys, said,"We're pleased to have sold another commercial reactor and to be making further headway in this important region. Velocys' GTL technology is well suited to the needs of the CIS, allowing cost-effective monetisation of stranded gas resources and dealing with the problem of associated gas flaring, which is a priority in the region for oil producers and governments alike."

Tags: Velocys plc