Montauk Renewables, Inc. (NASDAQ: MNTK) (“Montauk” or the
“Company”) and its subsidiary, Montauk Energy Holdings, LLC,
announced the Company signed a Letter of Intent (“LOI”) with EE
North America, LLC (“EE North America”), a North American
subsidiary of Denmark–based European Energy, to deliver all
biogenic Carbon Dioxide (“CO2”) volumes from all its Texas
facilities sufficient for large scale production of e-fuels such as
e-methanol. The initial delivery period is expected to begin in
2026 and is expected to last for 15 years upon final agreement. The
LOI immediately commits Montauk’s CO2 from its Texas facilities to
EE North America’s Texas project.
EE North America is a North American subsidiary of
Denmark–based European Energy that, for the past 19 years, has been
committed to being a leading player in the development of renewable
energy. EE North America intends to construct a Power-to-X facility
in Texas that would take the biogenic CO2 from Montauk’s locations
and use it in the production of e-methanol. The e-methanol would
then be used to fuel vessels for maritime shipping operations. The
LOI between Montauk and EE North America assists Montauk in
synchronizing capital commitment timing at its Texas facilities
with EE North America’s project.
The planned delivery would prevent a critical
amount of biogenic CO2 from entering the atmosphere and put it to
beneficial use, creating a new fixed-price commodity revenue stream
for Montauk.
“The expected agreement between Montauk and EE
North America will have a positive impact on the global reduction
of CO2, a greenhouse gas that contributes to climate change, while
continuing to expand and diversify our revenue sources, in this
case with fixed-price commodity sales,” said Sean McClain, CEO of
Montauk. “Our relationship with European Energy is another example
of Montauk’s commitment to environmental stewardship, its
multi-faceted development strategy, its ability to align itself
with industry leaders and its commitment to enhancing shareholder
value.”
EE North America's CEO, Lorena Ciciriello,
expressed her enthusiasm for the agreement, stating, "By thinking
creatively, building robust relationships, and strategically
assembling the pieces for long-term growth, we are at the forefront
of the clean energy transition. With genuine excitement and a
shared vision, EE North America and Montauk are forging a powerful
partnership, propelling us towards a brighter and more sustainable
tomorrow. Our passion for driving the transition to cleaner energy
fuels our dedication every step of the way."
"Collaboration is paramount in tackling large and
complex projects, and we are thrilled to celebrate this agreement
with Montauk," said Jaime Casasus-Bribian, European Energy’s Head
of Power-to-X Projects for the Americas & Iberia. He emphasized
the value of being a first mover in the Power-to-X space, stating,
"With a holistic approach to project development and strong
strategic partnerships, we are leveraging the expertise from our
blueprint e-methanol project in Denmark (Kassø), maximizing our
first mover advantage in the U.S., together with our group company
Ammongas that provides solutions for capturing and cleaning CO2.
Our aim is to be a key player in the U.S. across e-fuels and
hydrogen, driving innovation and forging a sustainable energy
future."
About Montauk Renewables, Inc.
Montauk Renewables, Inc. (NASDAQ: MNTK) is a
renewable energy company specializing in the management, recovery
and conversion of biogas into RNG. The Company captures methane,
preventing it from being released into the atmosphere, and converts
it into either RNG or electrical power for the electrical grid
(“Renewable Electricity”). The Company, headquartered in
Pittsburgh, Pennsylvania, has more than 30 years of experience in
the development, operation and management of landfill
methane-fuelled renewable energy projects. The Company has current
operations at 15 operating projects located in California, Idaho,
Ohio, Oklahoma, Pennsylvania, North Carolina and Texas. The Company
sells RNG and Renewable Electricity, taking advantage of
Environmental Attribute premiums available under federal and state
policies that incentivize their use. Montauk was named the number
one ranking company in South Africa in the Sunday Times Top 100
Companies of 2022. For more information, visit
https://ir.montaukrenewables.com Follow Montauk on LinkedIn
About EE North America
EE North America develops, finances, builds, and
operates wind and solar farms as well as Power-to-X projects. Its
parent company, European Energy A/S, is based in Copenhagen,
Denmark, and has significant and in-depth experience in the
development and deployment of renewable energy in four continents.
European Energy was founded in 2004 and has a current project
pipeline of 50 GW in markets across the world. For more
information, please visit EuropeanEnergy.com
For more information on Power-to-X (PtX), visit,
https://europeanenergy.com/green-solutions/ptx/Related news,
https://europeanenergy.com/news-insights/
Company Contact: John Ciroli Chief
Legal Officer and Secretary investor@montaukrenewables.com(412)
747-8700
Investor Relations Contact: Georg
Venturatos Gateway Investor Relations MNTK@gateway-grp.com (949)
574-3860
EENA Contact:Lorena
CicirielloCEOEE North America+1 (917)
900-8115lci@europeanenergy.com EENA Contact:Jaime
Casasus-BribianDirector, Head of Projects, Power-to-X, (Americas
& Iberia)European Energy+45
29-99-96-54jcb@europeanenergy.com
Safe Harbor Statement
This release contains forward-looking statements
regarding our planned sale of CO2 and capital expenditures
associated therewith.
Forward-looking statements are necessarily subject
to numerous assumptions, risks and uncertainties, which change over
time. Future events or circumstances may change our expectations
and may also affect the nature of the assumptions, risk and
uncertainty to which our forward-looking statements are subject.
The forward-looking statements in this release speak only as of the
date of this release, and we assume no duty, and do not undertake,
to update them. Actual results or future events could differ,
possibly materially, from those that we anticipated in these
forward-looking statements. As a result, we caution against placing
undue reliance on any forward-looking statements.
Forward-looking statements are subject to risks,
uncertainties and other factors, many of which are beyond the
Company’s control and are difficult to predict, including, without
limitation, risks related to the failure to consummate the
transaction or to realize the benefits of the transaction in the
anticipated timeframe or at all; unanticipated costs, burdens or
difficulties associated with the contemplated transaction and the
other risk factors described in more detail in the Company’s 2022
Form 10-K, first quarter 2023 Form 10-Q and other filings with the
U.S. Securities and Exchange Commission at www.sec.gov. We have
included this web address as inactive textual reference only.
Information on this website is not part of this document.
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