Verde Clean Fuels, Inc. Reports First Quarter 2024 Results

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HOUSTON, May 14, 2024--(BUSINESS WIRE)--Verde Clean Fuels, Inc. ("Verde" or the "Company") (Nasdaq: VGAS), a renewable energy company focused on the development of commercial production facilities to convert syngas derived from diverse feedstocks into gasoline, today reported first quarter 2024 GAAP diluted net loss per share of $(0.13). The first quarter net loss consists of ongoing general and administrative and research and development expenses related to the Company’s continuing focus on development of its first commercial facility based on Verde’s proprietary STG+® technology which is designed to produce gasoline utilizing either stranded natural gas or waste feedstocks.

Business Update Highlights Through May 14, 2024

  • Verde is participating in a US Department of Energy (DOE) funded consortium that is studying the production of zero emission methanol. A consortium, led by TDA Research, Inc. and which also includes the University of Colorado – Denver, plans to complete a conceptual design study for a system having the potential of capturing and then utilizing ambient CO2 to produce "green" methanol. TDA will design a direct air capture (DAC) process for sourcing of CO2 from the atmosphere and lead the integration of the DAC with the methanol plant. Verde plans to design and model the methanol production unit using its proprietary STG+® technology, with the goal to utilize CO2 from the DAC, and hydrogen from a carbon-free source, to potentially produce green methanol. Total funding under the award to the consortium is $400,000. An additional $100,000 is expected to come from non-DOE sources, for aggregate funding of up to $500,000 for the project. Based on the results of the study, other project phases may follow. The Company expects that methanol may play a vital role in decarbonizing the maritime and chemical industries.

  • Verde continues to proceed with the selection process for FEED/EPC services for the Cottonmouth Ventures Permian Basin project. Since the execution of the Cottonmouth Ventures JDA in February 2024, Verde continues with the selection process of a front-end engineering and design ("FEED") and engineering, procurement, and construction ("EPC") partner.

  • Verde is in preliminary discussions with various potential offtake parties of carbon credits and gasoline. Verde is in preliminary discussions with various parties with respect to long-term offtake arrangements for the purchase of D3 RINs, LCFS Credits, and gasoline that may be produced in any future projects. Such potential arrangements, if entered into, could help manage price risk associated with these commodities and could support expected project finance requirements.