Montauk Renewables reports double-digit revenue growth

Pittsburgh-based Montauk Renewables Inc. has reported a third quarter 2022 revenue figure showing a 40.5 percent increase compared with its third quarter 2021 results. The company says its net income also rose by 25.7 percent year-on-year for the quarter.

The company, which provides and operates systems to convert landfill gas and agricultural byproducts into “renewable” natural gas (RNG), says its third quarter 2022 revenue “reflects an increase in pricing of both gas commodity and the average realized price of D3 Renewable Identification Numbers (RINs) sold.”

The increase in price has offset what Montauk calls “a nominal decrease” in RNG volumes and the impacts of counter party sharing agreement revenues recognized in the prior period that have expired. As a way to regain volume, the company notes its board of directors approved a capital improvement project to build a second RNG production facility at the Apex landfill in Ohio.

“Once commercially operational, we expect this facility will increase our RNG processing capacity approximately 40 percent,” says Montauk. “We have already started planning for the construction of this facility and expect it to become commercially operational in 2024.”

On the ag byproducts side, the company says its Pico Energy facility in Idaho “began delivering two tranches of increased feedstock,” and that the firm “began releasing gas from storage associated with the Pico facility.”

In the eastern United States, Montauk says it received the New Renewable Energy Facility designation from the North Carolina Utilities Commission (NCUC) for the Turkey, North Carolina, location of its Montauk Ag Renewables development. The Turkey location was also accepted into the NCUC’s pilot project portfolio, says the firm.

The primary reason for its third quarter decrease in volume related to “preventive maintenance at our Bowerman [California] facility,” according to Montauk.

For the full year, Montauk says is predicting “RNG revenues expected to range between $196 and $216 million” and “RNG production volumes expected to range between 5.6 and 5.9 million Metric Million British Thermal Units( MMBtu).”

In 2021, the firm reported revenue of $148.1 million and RNG production of 5.7 million MMBtu. Should the 2022 forecast hold, Montauk Renewables will maintain a relatively steady output of RNG volume and grow its revenue by from 32 percent to 46 percent.