Emvolon and Montauk form joint venture to produce green methanol

Published 06/08/2025, 21:06
Emvolon and Montauk form joint venture to produce green methanol

WOBURN, Mass. - Emvolon and Montauk Renewables, Inc. (NASDAQ:MNTK), a $299 million market cap renewable energy company with $179.5 million in annual revenue, announced Wednesday a joint venture to develop multiple biogas-to-green methanol projects with plans to reach an annual production capacity of up to 50,000 metric tons by 2030. According to InvestingPro analysis, the company maintains a healthy 43% gross profit margin despite recent market challenges.

The partnership follows a successful field demonstration project and will begin with the Atascocita Humble Renewable Energy facility in Texas. This initial site is expected to convert a flared gas stream into approximately 6,000 metric tons of green methanol annually.

The companies will focus on transforming methane emissions from biogas into green methanol, expanding beyond traditional renewable natural gas applications. The venture aims to monetize previously wasted methane emissions without producing new greenhouse gases or relying on pipeline infrastructure.

"The opportunity set for this partnership is truly exciting and extends beyond new undeveloped projects to include the waste streams from existing biogas facilities," said Sean McClain, President and CEO of Montauk, according to the press release.

The companies cited growing demand for green methanol, particularly from the shipping industry following new International Maritime Organization regulations for vessels over 5,000 gross tonnage. The Methanol Institute projects the global market could grow to 14 million metric tons by 2030.

Emvolon, an MIT spin-off founded in 2021, utilizes technology that repurposes car engines as chemical plants to convert methane in biogas into liquid green chemicals and fuels. Montauk Renewables specializes in biogas management and currently operates 13 projects across the United States.

The joint venture announcement was made in a company press release.

In other recent news, Montauk Renewables reported a net loss for the first quarter of 2025, failing to meet earnings expectations. The company’s revenues reached $42.6 million, which did not meet analysts’ forecasts. Despite a 9.8% increase in revenue compared to the same period last year, Montauk Renewables recorded a net loss of $500,000. This contrasts with a net income of $1.9 million in the first quarter of 2024. These financial results have drawn attention from investors and analysts alike. The earnings report highlights a challenging period for the company, despite the revenue growth. Investors are closely monitoring these developments for potential impacts on future performance.

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