Verde Clean Fuels, Cottonmouth Ventures announce joint development for gas-to-gasoline facility

TAGS

In a significant step towards innovative energy solutions, Verde Clean Fuels, Inc. (NASDAQ: VGAS) and Cottonmouth Ventures LLC, a subsidiary of Diamondback Energy (NASDAQ: FANG), have announced their execution of a Joint Development Agreement (JDA) to develop a pioneering facility. This facility aims to produce commodity-grade gasoline from associated natural gas feedstock derived from Diamondback’s operations in the Permian Basin, a region renowned for its rich oil and natural gas reserves.

At the heart of this agreement is the proposed development, construction, and operation of a state-of-the-art facility designed to transform associated natural gas into approximately 3,000 barrels per day of fully-refined gasoline. Utilizing Verde’s patented STG+ process, the project not only promises to convert natural gas into a high-value, salable product but also aims to significantly reduce the flaring of natural gas. With the capacity to mitigate the flaring of up to 34 million cubic feet of natural gas per day, the initiative stands as a beacon of environmental and economic progress.

See also  NFP acquires Texan employee benefits broker EFG&M Management

Ernie Miller, CEO of Verde, expressed enthusiasm about the partnership, emphasizing the dual benefits of addressing midstream constraints and reducing natural gas flaring. “This arrangement brings compounding economic and environmental benefits to West Texas,” Miller stated, highlighting the project’s alignment with natural gas producers’ interests.

Sustainable Energy Milestone: Verde Clean Fuels and Diamondback Energy's Permian Basin Project to Reduce Gas Flaring

Sustainable Energy Milestone: Verde Clean Fuels and Diamondback Energy’s Permian Basin Project to Reduce Gas Flaring

Kaes Van’t Hof, President of Diamondback, echoed this sentiment, underscoring the project’s scalability and its alignment with Diamondback’s strategy to decarbonize the oil field while ensuring investor returns. “We are proud to partner with Verde to bring this technology to the market,” Van’t Hof remarked, pointing to the potential for similar facilities across West Texas.

See also  New midstream company Ironwood II launched with EnCap Flatrock's backing

Positioned in Martin County, Texas, at the heart of the Permian Basin, the proposed facility is set to serve as a model for future natural gas-to-gasoline projects. Its strategic location and innovative approach offer a promising solution to the challenges of pipeline constraints and the need for sustainable energy production.

Verde Clean Fuels, Inc. is at the forefront of renewable energy, specializing in converting diverse biomass feedstocks and natural gas into gasoline through its proprietary STG+ process. Diamondback Energy, an independent oil and natural gas company based in Midland, Texas, focuses on the development of unconventional oil and natural gas reserves in the Permian Basin.

See also  Covenant Health begins construction on new surgical hospital in Lubbock

This partnership represents a significant milestone in the energy sector, demonstrating a commitment to sustainability and innovation. By leveraging Verde’s patented technology and Diamondback’s extensive natural gas operations, the project has the potential to significantly impact the industry, setting a new standard for environmentally responsible energy production.

CATEGORIES
TAGS
Share This