Comstock Validates Record Renewable Fuel Yields

Rhea-AI Summary

Comstock Inc. (NYSE: LODE) and its subsidiary, Comstock Fuels , have validated record renewable fuel conversion yields of up to 125 gallons per dry ton of woody biomass on a gasoline gallon equivalent basis (GGE). The company's advanced lignocellulosic biomass refining solutions produce renewable fuels with market-leading yields and carbon intensities, including ethanol, gasoline, renewable diesel, and sustainable aviation fuel (SAF).

Comstock Fuels' processes are designed to be robust and highly-scalable, utilizing modular integrations of mature technologies. The company has validated a baseline yield of 125 GGE and carbon intensity of 15 with a mixture of hardwood feedstock species. They are also evaluating processes to capture and convert biogenic carbon emissions, potentially increasing yields to 150 GGE or more.

Positive

• Validated record renewable fuel conversion yields of up to 125 gallons per dry ton of woody biomass
• Baseline yield of 125 GGE and carbon intensity of 15 achieved with hardwood feedstock mixture
• Potential to increase yields to 150 GGE through carbon capture and conversion
• Processes designed to be robust and highly-scalable
• Flexibility to accept and fractionate all known species of woody biomass

Negative

• None.

Insights

Renewable Energy Analyst

Comstock's breakthrough in renewable fuel yields is a significant development for the biofuels industry. Achieving 125 gallons per dry ton of woody biomass is impressive, potentially setting a new industry benchmark. This could enhance the economic viability of biofuels, making them more competitive with fossil fuels.

The flexibility to use various woody biomass species adds to the technology's appeal, potentially reducing feedstock costs and supply chain risks. The low carbon intensity of 15 is particularly noteworthy, positioning Comstock's fuels favorably in markets with strict emissions regulations.

However, the commercial viability of this technology at scale remains to be proven. The planned 50,000 TPY demonstration facility will be important in validating these results in a real-world setting. Investors should monitor progress on financing and construction of this facility as a key indicator of the technology's potential.

Financial Analyst

This technological advancement could significantly improve Comstock's financial prospects. The high yield of 125 GGE per dry ton could translate to improved profit margins, assuming competitive production costs. The potential to increase yields to 150 GGE through carbon capture further enhances this outlook.

However, investors should note that Comstock is still in the pre-revenue stage for this technology. The capital expenditure required for the demonstration facility and subsequent commercial-scale plants will be substantial. The company's ability to secure financing on favorable terms will be crucial.

The market opportunity is significant, given the growing demand for low-carbon fuels. If Comstock can achieve cost parity with fossil fuels, as stated in their vision, it could lead to rapid market adoption and potentially strong revenue growth. However, execution risks remain high at this stage.

VIRGINIA CITY, Nev., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Comstock Inc. (NYSE: LODE) (“Comstock” and the “Company”) and its subsidiary, Comstock Fuels Corporation (“Comstock Fuels”), a technology leader in efficiently converting woody biomass into low carbon renewable fuels, today announced completion of testing to validate renewable fuel conversion yields of up to 125 gallons per dry ton of woody biomass on a gasoline gallon equivalent basis (“GGE”).

Comstock Fuels offers advanced lignocellulosic biomass refining solutions that are now proven to produce renewable fuels at market-leading yields and carbon intensities, including ethanol, gasoline, renewable diesel, and sustainable aviation fuel (“SAF”). Comstock Fuels’ processes are designed to be robust and highly-scalable to maximize optionality and throughput. These processes rely on modular integrations of mature process technologies with the flexibility to accept and fractionate all known species of woody biomass into intermediates for direct conversion into renewable fuels, including Comstock Fuels’ proprietary hydrodeoxygenated Bioleum Oil (“HBO”), which is qualified today for use in producing advanced renewable fuels under ASTM D1655. Comstock Fuels’ processes additionally incorporate variations of mature and widely-used hydroprocessing and cracking technologies to directly produce SAF and other advanced renewable fuels under D7566, subject to applicable approvals.

Comstock Fuels’ yields and carbon intensities generally vary based on feedstock selection and composition, site selection, and other factors. However, Comstock Fuels has now validated a baseline yield of 125 GGE and carbon intensity of 15 with a mixture of hardwood feedstock species, without emissions capture and conversion.

“Our validation of up to 125 GGE is a major achievement and a key prerequisite to the financing and construction of our recently announced 50,000 TPY commercial demonstration facility,” stated Corrado De Gasperis, Comstock’s executive chairman and chief executive officer.

Comstock Fuels is also currently evaluating modular integration of mature processes to capture and convert its biogenic carbon emissions into additional Bioleum derived fuels, thereby enabling increased yields approaching 150 GGE, or more than about 80% of the theoretical maximum yield from woody biomass.

“The achievements in our advanced renewable fuels solutions are the direct result and culmination of more than twenty years of research, development, and commercialization by our team,” added De Gasperis. “That work continues on, as we build and scale beyond our commercial demonstration facility, with a clear vision and plan to achieve cost parity with fossil fuels and thereby incentivize existing mobility supply chains to rapidly decarbonize global transportation. We look forward to finalizing the engineering and site selection for our commercial facility this year.”

About Comstock

Comstock Inc. (NYSE: LODE) commercializes innovative technologies that contribute to global decarbonization by efficiently converting under-utilized natural resources, primarily, woody biomass into net zero renewable fuels, end-of-life metal extraction, and generative AI-enabled advanced materials synthesis and mineral discovery. 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., Zach Spencer
Tel (775) 847-7532
questions@comstockinc.com

Forward-Looking Statements 

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: future market conditions; future explorations or acquisitions; future changes in our research, development and exploration activities; future financial, natural, and social gains; future prices and sales of, and demand for, our products and services; land entitlements and uses; permits; production capacity and operations; operating and overhead costs; future capital expenditures and their impact on us; operational and management changes (including changes in the Board of Directors); changes in business strategies, planning and tactics; future employment and contributions of personnel, including consultants; future land and asset sales; investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives, including the nature, timing and accounting for restructuring charges, derivative assets and liabilities and the impact thereof; contingencies; litigation, administrative or arbitration proceedings; environmental compliance and changes in the regulatory environment; offerings, limitations on sales or offering of equity or debt securities, including asset sales and associated costs; business opportunities, growth rates, future working capital, needs, revenues, variable costs, throughput rates, operating expenses, debt levels, cash flows, margins, taxes and earnings. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments, and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: adverse effects of climate changes or natural disasters; adverse effects of global or regional pandemic disease spread or other crises; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, and lithium, nickel and cobalt recycling, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration, metal recycling, processing or mining activities; costs, hazards and uncertainties associated with precious and other metal based activities, including environmentally friendly and economically enhancing clean mining and processing technologies, precious metal exploration, resource development, economic feasibility assessment and cash generating mineral production; costs, hazards and uncertainties associated with metal recycling, processing or mining activities; contests over our title to properties; potential dilution to our stockholders from our stock issuances, recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting our businesses; permitting constraints or delays; challenges to, or potential inability to, achieve the benefits of business opportunities that may be presented to, or pursued by, us, including those involving battery technology and efficacy, quantum computing and generative artificial intelligence supported advanced materials development, development of cellulosic technology in bio-fuels and related material production; commercialization of cellulosic technology in bio-fuels and generative artificial intelligence development services; ability to successfully identify, finance, complete and integrate acquisitions, joint ventures, strategic alliances, business combinations, asset sales, and investments that we may be party to in the future; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, lithium, nickel, cobalt, cyanide, water, diesel, gasoline and alternative fuels and electricity); changes in generally accepted accounting principles; adverse effects of war, mass shooting, terrorism and geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the Securities and Exchange Commission; potential inability to list our securities on any securities exchange or market or maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows, or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund, or any other issuer.

FAQ

What renewable fuel yield has Comstock Inc. (LODE) validated?

Comstock Inc. (LODE) has validated renewable fuel conversion yields of up to 125 gallons per dry ton of woody biomass on a gasoline gallon equivalent basis (GGE).

What types of renewable fuels can Comstock Fuels produce?

Comstock Fuels can produce various renewable fuels including ethanol, gasoline, renewable diesel, and sustainable aviation fuel (SAF).

What is the carbon intensity of Comstock Fuels' baseline yield?

Comstock Fuels has validated a baseline yield with a carbon intensity of 15 using a mixture of hardwood feedstock species.

Is Comstock Inc. (LODE) planning to build a commercial demonstration facility?

Yes, Comstock Inc. (LODE) is planning to build a 50,000 TPY commercial demonstration facility, with the validated yields being a key prerequisite for financing and construction.