Proposed project aims to utilize Verde Clean Fuels’ proprietary STG+® process to convert natural gas from Diamondback Energy’s Permian Basin operations into gasoline
HOUSTON–(BUSINESS WIRE)–Verde Clean Fuels, Inc. (“Verde” or “the Company”) (NASDAQ: VGAS), a renewable energy company focused on converting syngas derived from diverse feedstocks into gasoline, today announced that it has selected Chemex Global, LLC (“Chemex”) as the contractor to spearhead the front-end engineering and design (“FEED”) phase of the Company’s previously announced joint development agreement (“JDA”) with Cottonmouth Ventures, LLC, a subsidiary of Diamondback Energy (NASDAQ: FANG) for the proposed development, construction, and operation of a natural gas-to-gasoline facility in the Permian Basin. This FEED contractor selection is the first step in furtherance of the JDA, which provides a pathway forward for the parties to reach final definitive documents and final investment decision (“FID”).
This facility, to be located in Martin County, Texas, is anticipated to be a commercial-scale version of Verde’s existing demonstration facility in Hillsborough, New Jersey. The expected result of the project is to utilize the Company’s proprietary STG+® technology to produce approximately 2,900 barrels per day of commodity-grade gasoline. With the selection of Chemex, FEED work will now commence and is expected to be completed in early 2025. Upon FEED completion and reaching FID, it is anticipated that engineering, procurement and construction (“EPC”) work will then commence, with the goal to complete construction in 2027.
“With the potential to mitigate the flaring of up to 34 million cubic feet of natural gas per day, this proposed project could serve as a template for additional natural gas-to-gasoline projects throughout the Permian Basin and other pipeline-constrained basins in the U.S., as well as addressing flared or stranded natural gas opportunities internationally,” said Ernie Miller, Chief Executive Officer of Verde. “We’re excited to continue to move this potential project forward with a highly experienced partner like Chemex.”
“Chemex Global is pleased to be selected as the FEED contractor on this project, and we look forward to partnering with Verde to advance a commercial-scale implementation of its proprietary STG+ technology,” said Chemex Chief Commercial Officer, Matt Rodgers. “It is exciting to work with an innovative company like Verde, and to apply our multidisciplinary modular project execution expertise to this significant opportunity.”
About Verde Clean Fuels, Inc
Verde Clean Fuels, Inc. is a development-stage, renewable energy company focused on the development of commercial production plants to convert syngas, derived from diverse feedstocks including biomass or stranded or flared natural gas into gasoline through its innovative and proprietary liquid fuels technology, the STG+® process. Through its STG+® process, Verde converts syngas into fully finished fuels that require no additional refining, such as Reformulated Blend-stock for Oxygenate Blending (“RBOB”) gasoline. To learn more, please visit www.verdecleanfuels.com.
About Chemex Global, LLC
Chemex Global provides cutting-edge engineering, procurement, and construction solutions, leading the charge in the energy transition. With over 40 years of global expertise, Chemex excels in an integrated team approach, prioritizing safety, quality, and construction-driven planning for exceptional project outcomes.
Headquartered in The Woodlands, Texas, within the Greater Houston area, Chemex strategically serves clients worldwide across the energy sector and beyond. Chemex’s in-house capabilities are further strengthened by leveraging the fabrication facility of its parent company, The Shaw Group, located in Lake Charles, Louisiana.
Committed to shaping the future of energy and sustainability, Chemex Global stands as a dedicated innovator. For more information, visit www.chemexglobal.com.
Forward-Looking Statements
This press release contains statements believed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding the proposed development, construction and operation of the Permian Basin project with Cottonmouth Ventures LLC, the business strategy with respect to this proposed project, projected operations, timelines, plans and objectives of management and anticipated production at the proposed project. Words such as “expect,” “could,” “should,” “goal,” “aim,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “will,” “would,” “proposed,” “expectation,” “estimate,” “forecast,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.
Although we believe the expectations and forecasts reflected in these forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond Verde’s control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause assumptions and/or actual results to be materially different than those expressed in these forward-looking statements include:
- ability to finalize definitive documents and reach a FID with respect to the project contemplated by the JDA;
- ability to complete and/or commercialize the project contemplated by the JDA;
- ability to complete FEED work in early 2025 and/or EPC work in 2027;
- ability to obtain financing for the proposed facility;
- ability to achieve expected production volumes of approximately 2,900 barrels per day;
- ability to successfully execute on the construction of the facility and enter into third party contracts on contemplated terms;
- fluctuations in commodity prices and the potential for sustained low commodity prices;
- equipment, service or labor price inflation or unavailability;
- legislative, economic, legal or regulatory changes that affect operations; and
- other factors discussed in SEC filings, including Part I, Item 1A – Risk Factors in Verde’s periodic filings with the SEC, including Verde’s Annual Report on From 10-K. Verde’s SEC filings are available publicly on the SEC’s website at http://www.sec.gov.
We caution you not to place undue reliance on forward-looking statements contained in this press release, which speak only as of the date hereof, and neither party undertakes an obligation to update this information.
Contacts
Media Relations:
Juliet Fisher (Merchant)
[email protected]
Investor Relations:
Caldwell Bailey (ICR)
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