Montauk Energy strikes biogas deal with US dairy farm
Government incentives spur the JSE-listed firm to transform cow manure into natural gas at dairy farm in California
JSE-listed Montauk Energy has struck a deal with a dairy farm in California where it will for the first time transform cow manure into natural gas. The company mainly extracts and converts methane gas from waste landfills across the US where it benefits from subsidies through the Renewable Fuel Standard (RFS), a federal programme. In its report for the year to March 31, Montauk said it entered into a joint venture agreement with the dairy farm in July and would own and operate a manure digester and build, own and operate a renewable natural gas (RNG) facility for 20 years. The Pittsburgh-based company, which has been engaged in commercial-scale development of renewable energy facilities for more than 30 years, was unbundled from South African black empowerment investment company Hosken Consolidated Investments in 2014 but remains listed on the JSE. The Montauk share price of R95 is up 95% from when it first listed at R5 in December 2014, and 86% higher over the past year. The share ...
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