Montauk Renewables, Inc. Expands Dairy Digester RNG Project

Rhea-AI Summary

Montauk Renewables (NASDAQ: MNTK) has announced plans to expand its dairy digester renewable natural gas (RNG) cluster project in Jerome, Idaho. This expansion is triggered by an amendment to the feedstock arrangement, allowing for a minimum supply of 65,000 gallons per day. Expected total project costs are up to $18 million, with an increase in digestion capacity of up to 160,000 GPD and potential RNG production growth of 300 MMBtu per day. Montauk aims to invest up to $5 million in 2021, with operations expected to start by mid-2022.

Positive

• Expansion of RNG capacity could lead to increased revenue.
• Potential increase in RNG production by 300 MMBtu per day.
• Investment of up to $5 million planned for 2021.

Negative

• Project costs up to $18 million could strain financial resources.

PITTSBURGH, June 15, 2021 (GLOBE NEWSWIRE) -- Montauk Renewables, Inc. (NASDAQ: MNTK) (the “Company”) announces the planned expansion of its dairy digester renewable natural gas (“RNG”) cluster project in Jerome, Idaho.

The planned expansion is expected to be triggered by a recent amendment to the project’s feedstock arrangement, providing for approximately 65,000 gallons per day (“GPD”) in minimum manure feedstock supply. The increases in feedstock supply are to be staged over a projected 12-36 month period, as are the development fees to be paid by Montauk in connection with the expansion.

Montauk plans to pair the anticipated increase in feedstock supply with an intended increase in digestion capacity. With an expected total project cost of up to $18 million, inclusive of development fees, the project’s digestion capacity is expected to increase by up to 160,000 GPD of additional feedstock supply, with a corresponding potential increase in RNG production by up to 300 MMBtu per day. Montauk expects to invest up to $5 million of these project costs in 2021, and expects initial stages of the project expansion to be operational by mid-2022. Project costs are expected to be funded with a combination of existing cash and new draws under the Company’s existing credit facility. At current gas and attribute pricing levels, the existing project could generate additional revenue, assuming expected capacity at completion, of approximately $68 per MMBtu.

About Montauk Renewables, Inc.
Montauk Renewables, Inc. (NASDAQ: MNTK) is a renewable energy company specializing in the recovery and processing of biogas from non-fossil fuel sources such as agriculture and landfills for beneficial use as a replacement to fossil fuels. The Company develops, owns, and operates RNG projects, using proven technologies that supply renewable fuel into the transportation and electrical power sectors. With over 30 years’ experience, the Company is one of the largest producers of RNG in the United States. The Company has an operating portfolio of 12 RNG and three renewable electricity projects that span six states. For more information, visit https://ir.montaukrenewables.com.

Contacts

Company IR

investor@montaukenergy.com

This release contains forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding the planned expansion, the amount, timing and sources of funding related costs and the anticipated benefits of the expansion. All statements other than statements of historical or current fact included herein are forward-looking statements. These statements may include words such as “anticipate,” “assume,” “believe,” “can have,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “likely,” “may,” “might,” “objective,” “plan,” “predict,” “project,” “potential,” “opportunity,” “seek,” “should,” “target,” “will,” “would,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operational performance or other events.

Forward-looking statements are not guarantees of future performance and are subject to certain 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 acquisition, financing, construction and development of new projects and project expansions; changes in commodity and environmental attribute pricing; changes in governmental economic incentives for renewable energy projects; changes in expected levels of production output for renewable energy projects; and the other risk factors described in more detail in the Company’s most recent Form 10-K annual report and other filings with the U.S. Securities and Exchange Commission at www.sec.gov. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. The forward-looking statements included herein are made only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

FAQ

What is the planned expansion project for Montauk Renewables in Jerome, Idaho?

Montauk is expanding its dairy digester RNG cluster project, increasing feedstock supply and digestion capacity.

What is the expected cost of Montauk's RNG project expansion?

The total project cost is expected to be up to $18 million.

When does Montauk expect to start operations for the expanded RNG project?

Initial operations are expected to begin by mid-2022.

How much RNG production is projected to increase with Montauk's expansion?

The expansion may increase RNG production by up to 300 MMBtu per day.

What investment is Montauk planning for the project in 2021?

Montauk plans to invest up to $5 million in the project in 2021.