Wedoany.com Report-Mar 14, Montauk Renewables Inc. on March 13 announced the company produced 5.6 million MMBtu of renewable natural gas (RNG) last year, up 1.6% when compared to 2023. Electricity production was at 186,000 megawatt hours (MWh), down from 194,000 MWh in 2023.
Sean McClain, president and CEO of Montauk, discussed company operations and policy impacts during a fourth quarter earnings call.
McClain referenced the U.S. EPA’s recent decision to delay the 2024 Renewable Fuel Standard compliance deadline and likely reduce the 2024 cellulosic renewable volume obligation (RVO). He stressed that Montauk has already sold 100% of its 2024 D3 renewable identification numbers (RINs) and has zero exposure to the timing and resolution of the issue.
According to McClain, the D3 RIN market was extremely volatile during the fourth quarter, with prices ranging from $3.50 to $2.08. He noted that purchasing activity by obligated parties was muted during the quarter. Due to these market conditions, Montauk chose enter 2025 with a high RIN balance. All 2024 vintage RINs have now been sold, however, as obligated parties reentered the market during the first quarter of 2025.
McClain cited continued volatility in the RNG space and noted his company has worked to diversify its business. Montauk expects to commission a swine waste energy project in Turkey, North Carolina, in 2026. According to McClain, the majority of revenue generated from that project will be derived from renewable power generation.
He also explained that the biochar produced by Montauk’s patented reactor process is expected to help insulate the company from volatility in markets that are underpinned by federal and state programs, such as the RFS and California Low Carbon Fuel Standard.
McClain briefly discussed the capacity expansion project at the Pico Energy RNG project in Idaho, noting that production at the project site was up 70% last year when compared to 2023.
Work is also nearly complete on the development of a second RNG processing facility at the Apex landfill in Amsterdam, Ohio. McClain estimates commissioning of that facility will take place during the second quarter of 2025.
In addition, McClain said Montauk plans to convert its renewable electric generation project in Tulsa, Oklahoma, to RNG production. Once operational, the project is expected to produce approximately 1,500 MMBtus per day. Commissioning is currently targeted for the first quarter of 2027.
For the full year 2024, Montauk reported total revenues of $175.7 million, up slightly from $174.9 million in 2023. The average realized RIN price was $3.28, up 21%. Operating income was $16.1 million, down 31.3%. Net income was $9.7 million, down 34.9%.
