Proposed project aims to utilize Verde Clean
Fuels’ proprietary STG+® process to convert natural gas from
Diamondback Energy’s Permian Basin operations into gasoline
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240604385515/en/
Media Relations: Juliet Fisher (Merchant) juliet@merchant.agency
Investor Relations: Caldwell Bailey (ICR) verdeIR@icrinc.com
Verde Clean Fuels (NASDAQ:VGAS)
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