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Verde Clean Fuels, Inc. Reports 2023 Results
April 1, 2024
2 Min Read
SunFlowerStudio / Alamy Stock Photo
HOUSTON --Verde Clean Fuels, Inc. (“Verde” or the “Company”) (Nasdaq: VGAS), a renewable energy company focused on the development of commercial production plants to convert syngas derived from diverse feedstocks into gasoline, today reported full year 2023 GAAP diluted net loss per share of $(0.45). The full year 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 March 28, 2024
Verde and Cottonmouth Ventures announced the execution of a Joint Development Agreement for the first deployment of Verde’s STG+ technology in the Permian Basin.
On February 13, 2024, Verde and Cottonmouth Ventures, a subsidiary of Diamondback Energy (NASDAQ: FANG), announced the execution of a joint development agreement (“JDA”) for the proposed development, construction, and operation of a facility to produce commodity-grade gasoline utilizing associated natural gas feedstock supplied from Diamondback’s operations in the Permian Basin. The expectation for the project is to produce approximately 3,000 barrels per day of fully-refined gasoline utilizing Verde’s patented STG+ process. By consuming natural gas in the pipeline-constrained Permian Basin as feedstock, the proposed project could demonstrate the ability to mitigate the flaring of up to 34 million cubic feet of natural gas per day, while also producing a high-value, salable product. The JDA provides a pathway forward for the parties to reach final definitive documents and final investment decision (“FID”). The JDA frames the contracts contemplated to be entered into between the parties, including an operating agreement, ground lease agreement, construction agreement, license agreement and financing agreements as well as conditions precedent to close such FID.
Verde is continuing the selection process for FEED/EPC services for the Cottonmouth Ventures Permian Basin project.
Verde is proceeding with selection of a front end engineering and design (“FEED”) partner and an engineering, procurement, and construction (“EPC”) partner. With the execution of the Cottonmouth Ventures JDA, Verde expects to finalize its partner selections soon.
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 produced by our facilities. Such a potential arrangement would help manage price risk associated with these commodities and would support project finance requirements.
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