Montauk Renewables sells renewable natural gas (RNG) to Shell, Exxon Mobil and Victory Renewables.
On the trend for that product, Montauk Renewables believes that the growing demand for RNG can be attributed to a variety of factors, including growing public support for renewable energy, actions by the United States government to increase energy independence, concerns environmental factors that increase the demand for natural gas vehicles, job creation and increased investment in renewable energy.
Montauk Renewables’ Renewable Natural Gas and Renewable Identification Numbers (RIN) customers typically include large long-term owner-operators of landfills and cattle farms, local utilities, and large refineries in the United States natural gas and refining sectors.
Also, the royalty structures included in their contracts, as well as the large size of their counterparties, limit their credit risk.
For 2020, Montauk Renewables’ sales to Royal Dutch Shell plc represented approximately 14.1% of its operating income.
Additionally, Victory Renewables and Exxon Mobil each accounted for 11.3 and 15.1%, respectively, of their 2020 operating income from the sale of Environmental Attributes.
Renewable natural gas
Montauk Renewables electricity customers typically include municipal and investor-owned electric utilities.
For the sale of Renewable Electricity and REC, the City of Anaheim represented about 14.4% of its operating income in 2020.
No other customer accounted for more than 10% of its total operating revenue in 2020.
Montauk Renewables is a renewable energy company specializing in the recovery and processing of biogas from landfills and other non-fossil fuel sources for beneficial use as replacement for fossil fuels.
The company develops, owns and operates RNG projects, using proven technologies that supply renewable fuel to the transportation and electric power sectors.
It is also one of the largest renewable natural gas producers in the United States and has been involved in the industry for more than 30 years.
Montauk Renewables established its operating portfolio of 12 RNG and three renewable electricity projects through self-development, partnerships and acquisitions spanning six states and has increased its revenue from $ 33.8 million in 2014 to $ 100.4 million in 2020.
Biogas is produced by microbes as they break down organic matter in the absence of oxygen (during a process called anaerobic digestion).
The company’s two current sources of commercial-scale biogas are landfill gas (LFG) or anaerobically digested gas (ADG).