Comstock Fuels Executes License Agreement With Gresham’s Eastern Ltd

Rhea-AI Summary

Comstock Inc. (NYSE: LODE) announced a binding agreement between Comstock Fuels and Gresham's Eastern, granting exclusive rights in Pakistan to deploy Comstock's biomass refining technologies for sustainable aviation fuel (SAF) production. Gresham's will develop a demonstration facility in Lahore processing 75,000 metric tons of biomass annually, with plans to scale to 1,000,000 metric tons yearly.

The agreement gives Comstock Fuels a 20% equity stake in each Bioleum Refinery, plus 6% royalty on licensed product sales and 6% engineering fees on capital costs. The project aims to utilize Pakistan's agricultural residue biomass, which could potentially yield up to 14 billion gallons of renewable fuels annually at proven yields of 140 gallons per dry metric ton.

Positive

• Secured 20% equity stake in each Bioleum Refinery project
• Will receive 6% royalty on product sales plus 6% engineering fees
• Technology can process 140 gallons per dry metric ton of biomass
• Agreement enables expansion into Pakistan's renewable fuel market
• Initial facility capable of processing 75,000 metric tons annually

Negative

• Initial demonstration facility required before commercial scale-up
• Success dependent on third-party development and financing
• Revenue generation timeline uncertain due to development phase

Insights

Energy Technology Analyst

The licensing agreement between Comstock Fuels and Gresham's represents a significant strategic move in the renewable fuels sector. The planned 75,000 metric ton demonstration facility, scaling to 1M metric tons annually, showcases substantial production potential with proven yields of 140% GGE per dry metric ton. Pakistan's vast biomass resources of 100+ million metric tons annually could theoretically yield 14 billion gallons of renewable fuels, presenting an enormous market opportunity. The deal structure, including 20% equity stake and 12% combined royalty and engineering fees, creates a robust revenue stream for Comstock. This positions the company to capitalize on Pakistan's renewable energy targets of 60% by 2030.

Market Research Analyst

This partnership strategically positions Comstock in the rapidly expanding SAF market, particularly in the MENA region. The structure provides multiple revenue streams through equity, royalties and engineering fees, significantly de-risking the venture while maintaining upside exposure. The demonstration facility in Lahore serves as a proof-of-concept for larger deployments, potentially catalyzing similar agreements in other biomass-rich regions. The $151.6M market cap company has secured a foothold in a market with billions in export potential, leveraging Pakistan's agricultural infrastructure and Gresham's local expertise. The deal's emphasis on technology transfer and quality control through site-specific licensing protects Comstock's IP while enabling rapid market penetration.

Sustainability Expert

This agreement represents a breakthrough in sustainable fuel infrastructure development. By utilizing agricultural and forestry residuals, the project addresses both waste management and renewable energy production. The scalable approach, starting with a demonstration facility before full commercial deployment, allows for optimization of the supply chain and operational processes. The partnership's alignment with Pakistan's renewable energy goals and focus on sustainable feedstock sourcing indicates strong government support potential. The technology's proven yield efficiency of 140 gallons per dry metric ton positions it competitively in the global SAF market, where demand is rapidly increasing due to aviation industry decarbonization commitments.

Bringing Renewable Fuel Production to Pakistan with Sustainable Biomass Refining Solutions

VIRGINIA CITY, Nev., Dec. 30, 2024 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) today announced the execution of a binding agreement between Comstock Fuels Corporation (“Comstock Fuels”) and Gresham’s Eastern (Pvt) Ltd (“Gresham’s”), a leading sustainable energy engineering, equipment and construction company based in Pakistan, under which Comstock Fuels agreed to grant Gresham’s exclusive project and site development rights in Pakistan to enable Gresham’s to deploy Comstock Fuels’ proprietary and patented lignocellulosic biomass refining technologies to produce sustainable aviation fuel (“SAF”) and other renewable fuels in Pakistan.

Global Market Impact

Gresham’s will develop an initial demonstration facility in Lahore, Pakistan, capable of processing 75,000 metric tons of biomass annually. This facility is designed to generate the prerequisite operational and economic data for scaling up to a 1,000,000 metric tons per year commercial facility, aligning with rapid global market demand for increased SAF production, thereby positioning Pakistan as an emerging leader in the renewable fuels sector. Gresham’s plans on utilizing abundant, locally available agricultural and forestry residuals, as well as sustainably grown energy crops, unlocking billions of dollars in export potential, becoming a leading contributor of Pakistan’s commitment to producing 60% renewable energy by 2030.

Mian Suhall Husain, CEO of Gresham’s, commented, “This partnership exemplifies Gresham’s commitment to deploying both quality systems and cutting-edge technologies for truly sustainable energy solutions in Pakistan. We are on the doorstep of a globally significant opportunity where our combined competencies can create wealth for nations and communities alike.”

Under the agreement, Gresham’s will lead the development, financing, construction, and management of renewable fuel production facilities based on Comstock Fuels’ proprietary Bioleum refining technologies. Each Bioleum Refinery will operate under a site-specific license agreement to ensure compliance with Comstock Fuels’ performance and quality standards. Comstock Fuels will contribute site specific technology rights in exchange for a 20% equity stake in each Bioleum Refinery, plus a royalty fee equal to 6% of each refinery’s sales of licensed products, and engineering fees equal to 6% of total capital and construction costs.

The inclusion of cellulosic ethanol production using Comstock Fuels’ advanced lignocellulosic refining process adds significant value to Pakistan's existing renewable energy sector, where most of the domestically produced ethanol is exported. This process positions the partnership to capitalize on the country’s widely available agricultural residue biomass, currently representing over 100 million metric tons annually, enabling a sustainable, societal and economically impactful use for these resources. That amount of feedstock has the potential to yield upwards of 14 billion gallons of renewable fuels per year at Comstock Fuels’ proven yields exceeding about 140 gallons per dry metric ton of biomass (on a gasoline gallon equivalent basis, or “GGE”).

Wide Open Market Hidden in Plain Sight

Pakistan’s abundance of renewable biomass resources provides an ideal foundation for developing a robust renewable fuel production ecosystem. The Gresham’s projects will prioritize fulfilling regional demand while targeting export markets across the Middle East and North Africa (MENA). The combination of Gresham’s engineering, equipment fabrication, construction and extensive quality-systems operating and supply chain network, positions for strong market leadership.

“Mian’s extraordinary track record and commitment to both quality systems and societal impact align perfectly with Comstock’s mission and approach,” stated David Winsness, President of Comstock Fuels. “Gresham has positioned itself as a leading integrator in Pakistan’s economic development and sustainable energy goals. We believe this partnership will be transformative to Pakistan’s leadership in SAF and renewable fuel production and showcases the quality and speed of the global adoption of our industry-leading solution. We are excited to get started in Lahore and well beyond.”

About Gresham’s Eastern (Pvt) Ltd.

For the better part of six decades, Gresham's name has been synonymous with Quality and Innovation. Today, Pakistan-based Gresham’s is a premier project developer, engineering, equipment fabricator and construction company focused on deploying technology-leading, sustainable energy solutions and initiatives across Pakistan. To learn more, visit www.gel1947.com.

About Comstock Fuels Corporation

Comstock Fuels delivers advanced lignocellulosic biomass refining solutions that set industry benchmarks for production of cellulosic ethanol, gasoline, renewable diesel, sustainable aviation fuel (“SAF”), and other renewable fuels, with extremely low carbon intensity scores of 15 and market-leading yields of up to 140 gallons per dry metric ton of feedstock (on a gasoline gallon equivalent basis, or “GGE”), depending on feedstock, lignin content, site conditions, and other process parameters. Comstock Fuels plans to directly build, own, and operate a network of Bioleum Refineries in the U.S. to refine 50 million tons of biomass annually into 8 billion gallons of renewable fuel by 2035, corresponding to 50% of the U.S. renewable fuel mandate. Comstock Fuels is currently evaluating several U.S. sites for construction of its Demonstration Scale Facility to validate its fully integrated process at 75,000 tons per year, paving the way for rapid full-scale commercialization. Comstock Fuels also licenses its advanced refining solutions to third parties for additional production in the U.S. and global markets, including several recently announced and other pending projects. To learn more, please visit www.comstockfuels.com.

About Comstock Inc.

Comstock Inc. (NYSE: LODE) innovates and commercializes technologies that are deployable across entire industries to contribute to global decarbonization and the clean energy transition by efficiently extracting and converting under-utilized natural resources, such as waste and other forms of woody biomass into renewable fuels, and end-of-life electronics into recovered electrification metals. Comstock’s innovations group is also developing and using artificial intelligence technologies for advanced materials development and mineral discovery for sustainable mining. To learn more, please visit www.comstock.inc.

Comstock Social Media Policy

Comstock Inc. has used, and intends to continue using, its investor relations link and main website at www.comstock.inc in addition to its Twitter, LinkedIn and YouTube accounts, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Contacts

For investor inquiries:
RB Milestone Group LLC
Tel (203) 487-2759
ir@comstockinc.com

For media inquiries or questions:
Comstock Inc., Tracy Saville
Tel (775) 847-7532
media@comstockinc.com

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FAQ

What are the financial terms of Comstock's (LODE) agreement with Gresham's Eastern?

Comstock will receive a 20% equity stake in each Bioleum Refinery, 6% royalty on licensed product sales, and 6% engineering fees on total capital and construction costs.

What is the processing capacity of LODE's planned demonstration facility in Lahore?

The initial demonstration facility in Lahore will be capable of processing 75,000 metric tons of biomass annually.

How much renewable fuel can LODE's technology produce per ton of biomass?

Comstock's technology yields approximately 140 gallons per dry metric ton of biomass on a gasoline gallon equivalent basis.

What is the potential renewable fuel production capacity in Pakistan using LODE's technology?

Using Pakistan's available biomass resources of over 100 million metric tons annually, the potential yield could reach up to 14 billion gallons of renewable fuels per year.

What markets will the LODE-Gresham's partnership target for renewable fuel sales?

The partnership will prioritize fulfilling regional demand in Pakistan while targeting export markets across the Middle East and North Africa (MENA).