Verde Positioned to be Leading Provider of
Renewable Gasoline
Verde Announces Joint Venture with Diamondback
Energy in Permian Basin
Verde Clean Fuels, Inc. (“Verde”), a company focused on becoming
leading supplier of gasoline and other fuels derived from renewable
feedstocks or natural gas, today announced the completion of the
previously announced business combination between CENAQ Energy
Corp. (NASDAQ: CENQ) (“CENAQ”) and Bluescape Clean Fuels
Intermediate Holdings, LLC. Shares of Class A common stock of Verde
will be traded on the NASDAQ Capital Markets starting on February
16, 2023 under the symbol “VGAS” along with the public warrants
under the symbol “VGASW.”
Verde developed and owns a proprietary syngas-to-gasoline
(“STG+®”) technology which is designed to produce renewable
gasoline utilizing waste feedstocks that are otherwise landfilled.
The renewable gasoline can result in more than a 60% reduction in
carbon intensity versus traditional hydrocarbon-based gasoline
based on GREET-style Carbon Intensity analysis. Verde’s process
also can produce a lower carbon gasoline from flared or
economically disadvantaged natural gas. Verde’s multi-patented
technology has been developed over the past 15 years and tested at
its demonstration facility in New Jersey.
“Traditional gasoline used today is refined from crude oil and
makes up over half of greenhouse gas emissions produced by the U.S.
transportation sector. We believe our proprietary STG+® system will
enable everyday consumers of gasoline to seamlessly and materially
participate in the decarbonization of our atmosphere, without
changing their automobiles or fueling habits,” said Ernie Miller,
co-founder and CEO of Verde. “Our renewable and lower carbon
gasoline will work within the existing gasoline infrastructure and
in the global fleet of internal combustion engines. We estimate
that the replacement of conventional hydrocarbon-based gasoline
with Verde's renewable gasoline would be comparable to removing six
of every ten cars on the road today. The introduction of Verde’s
renewable gasoline to reduce greenhouse gases is a new and
significant solution to global decarbonization.”
The STG+® process is highly flexible and efficiently turns
syngas, regardless of feedstock, into gasoline that does not
require any additional refining. The Verde system is fully modular
and sized to match feedstock sources, allowing for optimal
logistical and cost efficiencies. Verde is currently developing its
first commercial facility to be located at a landfill site in
Maricopa, AZ, which, once fully operational, is expected to produce
7 million gallons per year of renewable gasoline during its first
phase. With the proceeds from the merger and expected project
financings, we believe that Verde is well capitalized to bring this
first project online in the first half of 2025. Verde has several
additional renewable gasoline projects in various early stages of
development.
Concurrent with the business combination, Diamondback Energy,
Inc. (NASDAQ: FANG) (“Diamondback”), through its wholly-owned
subsidiary, Cottonmouth Ventures LLC (“Cottonmouth Ventures”), has
made a $20 million equity investment in Verde and has entered into
an Equity Participation Right Agreement pursuant to which Verde
will grant Cottonmouth the right to participate and jointly develop
Permian Basin facilities utilizing Verde’s STG+ technology for the
production of gasoline derived from economically disadvantaged
natural gas feedstocks. The production of gasoline from natural gas
sourced from the Permian Basin is designed to allow Diamondback to
mitigate the flaring of natural gas while also producing a
high-margin product from natural gas streams that are subject to
being price disadvantaged compared to other natural gas basins.
“Diamondback is excited to announce our equity investment in and
partnership with Verde, which is our largest investment to date out
of our new ventures subsidiary, Cottonmouth. We are also looking
forward to expanding the Verde business into the Permian Basin with
their proprietary STG+® technology. This investment, and the
technology that accompanies it, fits with our strategy to
decarbonize the oil field while generating an economic return for
our investors,” stated Kaes Van’t Hof, President of
Diamondback.
J. Russell Porter, CEO of CENAQ said, “We are pleased to
complete this transaction and create Verde Clean Fuels, Inc. along
with Ernie Miller and his team. As we have worked together over the
past year to combine our entities, we have become confident that
the significant number of existing opportunities to deploy the
proven STG+® technology utilizing various renewable and green
feedstocks will increase as a result of Verde Clean Fuels becoming
a publicly traded entity.”
Advisors
Kirkland & Ellis LLP served as legal counsel to Verde.
Vinson & Elkins L.L.P. served as legal counsel to CENAQ.
Imperial Capital served as placement agent to CENAQ. Baker Botts
L.L.P. served as legal counsel to Imperial Capital, LLC.
About Verde Clean Fuels
Verde Clean Fuels, Inc. is a renewable energy company
specializing in the conversion of synthesis gas, or syngas, derived
from diverse feedstocks, such as biomass, municipal solid waste and
mixed plastics, as well as natural gas (including synthetic natural
gas) and other feedstocks, into gasoline through an innovative and
proprietary liquid fuels technology, the STG+® process. Through its
STG+® process, Verde converts syngas into Reformulated Blend-stock
for Oxygenate Blending (“RBOB”) gasoline. Verde is focused on the
development of commercial facilities aimed at turning waste and
other bio-feedstocks into a usable stream of syngas which is then
transformed into a single finished fuel, such as gasoline, without
any additional refining steps.
Prior to this transaction, Verde Clean Fuels was a portfolio
company of Bluescape Energy Partners LLC. Bluescape Energy Partners
LLC (“Bluescape Energy Partners”) is an alternative investment firm
that leverages its private capital, global network, and superior
thinking to deliver differentiated long-term investment performance
in the broader energy and utility sectors. Bluescape Energy
Partners employs a unique approach and long-term perspective,
helping position companies for growth and value creation by
providing capital and strategic oversight with its
multi-disciplined team of executive-level managers, operators,
strategic consultants, and restructuring advisors. It thrives to
uncover investments exhibiting high performance potential where it
seeks to build lasting partnerships. Bluescape Energy Partners
strives to create positive impacts for all of its stakeholders
through its capital, operational capabilities, and long-term
ownership model.
To learn more about Verde, please visit www.verdecleanfuels.com.
(Launching February 16, 2023)
About CENAQ Energy Corp.
CENAQ Energy Corp. is a blank check company formed for the
purpose of effecting a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or similar business
combination with one or more businesses. CENAQ Energy Corp. focused
its search for a target business in the energy industry in North
America. CENAQ Energy Corp. is led by energy industry veterans J.
Russell Porter (CEO) and Michael J. Mayell (President and CFO) and
John B. Connally III (Chairman).
Forward Looking Statements
The information included herein and in any oral statements made
in connection herewith include “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements, other than statements of present or
historical fact included herein, regarding the benefits of the
transaction, Verde’s future financial performance following the
transaction, as well as Verde’s strategy, future operations,
financial position, estimated revenues and losses, projected costs,
prospects, plans and objectives of management are forward-looking
statements. When used herein, including any oral statements made in
connection herewith, the words “could,” “should,” “will,” “may,”
“believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,”
the negative of such terms and other similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on Verde management’s current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. Except as otherwise required by applicable law,
Verde disclaims any duty to update any forward-looking statements,
all of which are expressly qualified by the statements in this
section, to reflect events or circumstances after the date hereof.
Verde cautions you that these forward-looking statements are
subject to risks and uncertainties, most of which are difficult to
predict and many of which are beyond the control of Verde . These
risks include, but are not limited to, general economic, financial,
legal, political and business conditions and changes in domestic
and foreign markets; the failure to realize the anticipated
benefits of the business combination, the risks related to the
growth of Verde’s business and the timing of expected business
milestones; the ability of Verde to obtain financing in connection
with the transaction or in the future; and the effects of
competition on Verde’s future business. Should one or more of the
risks or uncertainties described herein and in any oral statements
made in connection therewith occur, or should underlying
assumptions prove incorrect, actual results and plans could differ
materially from those expressed in any forward-looking statements.
There may be additional risks that Verde presently do not know or
that Verde currently believe are immaterial that could cause actual
results to differ from those contained in the forward-looking
statements. Additional information concerning these and other
factors that may impact Verde ’ expectations and projections can be
found in Verde’s filings with the Securities and Exchange
Commission (the “SEC”). Verde’s SEC filings are available publicly
on the SEC’s website at www.sec.gov.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230215005933/en/
Investor Relations Contact For Verde Clean Fuels: Ernie
Miller – CEO investor@verdecleanfuels.com Media Contact
Kellie Woods verde@ink-co.com
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