Velocys, Oxford Catalysts’ US subsidiary, has been awarded a $2.25m (£1.39m) research-and-development (R&D) loan by the State of Ohio.
According to Oxford Catalysts, the facility can be called upon at any time over the next two years, is repayable over a period of 10 years and carries a fixed interest rate of two per cent per annum on funds drawn.
Velocys, which develops microchannel process technology, intends to utilise this loan to help finance any capital investments that are needed to bring its technology to market, as well as for the refinement of low-cost mass manufacturing techniques.
Roy Lipski, chief executive officer of Oxford Catalysts Group, said: ‘This loan, which bolsters our already-strong balance sheet, continues to build upon the strategic relationship between the State of Ohio and Velocys.
‘The favourable terms offered by the state allow us to further invest in consolidating our leading market position in synthetic fuels.’