Verde Clean Fuels selects Chemex for engineering phase of gas-to-gasoline facility in Permian Basin
Verde Clean Fuels, Inc. (NASDAQ: VGAS), a pioneer in renewable energy technologies, has taken a crucial step forward in its collaboration with Cottonmouth Ventures, LLC, a subsidiary of Diamondback Energy (NASDAQ: FANG). The company announced the selection of Chemex Global, LLC as the contractor to lead the front-end engineering and design (FEED) phase for a new natural gas-to-gasoline facility in the Permian Basin. This FEED phase marks the beginning of the joint development agreement (JDA) aimed at developing, constructing, and operating the facility.
Strategic Development in Renewable Energy
The proposed facility, to be situated in Martin County, Texas, represents a significant scale-up from Verde’s existing demonstration facility in Hillsborough, New Jersey. Utilizing Verde’s proprietary STG+ technology, the facility is expected to produce about 2,900 barrels per day of commodity-grade gasoline upon completion. This project not only underscores the company’s commitment to innovative energy solutions but also aligns with broader environmental goals by potentially mitigating up to 34 million cubic feet of natural gas flaring per day.
Ernie Miller, Chief Executive Officer of Verde, highlighted the project’s broader implications: “With the potential to mitigate the flaring of up to 34 million cubic feet of natural gas per day, this proposed project could serve as a template for additional natural gas-to-gasoline projects throughout the Permian Basin and other pipeline-constrained basins in the U.S., as well as addressing flared or stranded natural gas opportunities internationally,” he stated.
Chemex Global’s Role in Advancing Renewable Technology
Chemex Global, known for its multidisciplinary modular project execution expertise, is set to commence the FEED work immediately, with completion expected in early 2025. Following this phase, the project will move towards a final investment decision and, subsequently, the engineering, procurement, and construction phase, which is slated for completion in 2027.
Matt Rodgers, Chief Commercial Officer of Chemex, expressed enthusiasm about the collaboration: “Chemex Global is pleased to be selected as the FEED contractor on this project, and we look forward to partnering with Verde to advance a commercial-scale implementation of its proprietary STG+ technology,” he remarked. “It is exciting to work with an innovative company like Verde, and to apply our multidisciplinary modular project execution expertise to this significant opportunity.”
Anticipated Impact and Future Outlook
The project is poised to set a precedent for similar initiatives, leveraging natural gas to produce gasoline in an environmentally responsible manner. By converting syngas from diverse feedstocks into gasoline, Verde Clean Fuels, Inc. is not only advancing its technological footprint but also contributing to the reduction of environmental hazards associated with natural gas flaring.