Montauk Renewables ups landfill gas-to-energy output

Pittsburgh-based Montauk Renewables Inc., which offers landfill gas-to-energy technology, says its revenue increased 114 percent year-on-year in the second quarter of 2022 while its net income of $19.2 million represented a 511 percent increase from the year before.

Montauk says higher pricing for its recovered renewable natural gas (RNG) contributed to the better results, as did an increase in the number of Renewable Identification Numbers (RINs) it sold, following a decision in this year’s first quarter “not to self-market a significant number of RINs due to our belief that the cellulosic biofuel (D3) RIN index volatility was temporary.”

On the volume side, Montauk says its RNG production of 1.5 million metric British thermal units (MMBtu) represented a 3.7 percent increase compared with the second quarter of 2021.

Regarding its revenue and profits, the company says, “Also impacting the increase are gains recognized in the second quarter of 2022 related to gas commodity hedging settlements of $1.6 million. Offsetting these increases were lower revenues recognized under counterparty sharing arrangements of $1.1 million in the second quarter of 2022 compared to $6.1 million in the second quarter of 2021."

Looking ahead, Montauk Renewables forecasts that for the full year 2022 it will record revenue in the $200 million to $220.0 million range while producing between 5.6 and 6.3 MMBtu.

The company says it currently has 15 operating projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina and Texas.