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Montauk Renewables signs LOI with European Energy to provide CO2 for e-methanol production in Texas

Montauk Renewables—a renewable energy company specializing in the management, recovery and conversion of biogas into RNG—and its subsidiary Montauk Energy Holdings signed a Letter of Intent (LOI) with EE North America, a North American subsidiary of Denmark–based European Energy, to deliver all biogenic CO2 volumes from all its Texas facilities sufficient for large scale production of e-fuels such as e-methanol.

The initial delivery period is expected to begin in 2026 and is expected to last for 15 years upon final agreement. The LOI immediately commits Montauk’s CO2 from its Texas facilities to EE North America’s Texas Power-to-X project.


Rendering of EE North America Power-to-X plant.

EE North America intends to construct a Power-to-X facility in Texas that would take the biogenic CO2 from Montauk’s locations and use it in the production of e-methanol. The e-methanol would then be used to fuel vessels for maritime shipping operations. The LOI between Montauk and EE North America assists Montauk in synchronizing capital commitment timing at its Texas facilities with EE North America’s project.

The planned delivery would prevent biogenic CO2 from entering the atmosphere and put it to beneficial use, creating a new fixed-price commodity revenue stream for Montauk.

Montauk Renewables captures methane, preventing it from being released into the atmosphere, and converts it into either RNG or electrical power for the electrical grid. The company, headquartered in Pittsburgh, Pennsylvania, has more than 30 years of experience in the development, operation and management of landfill methane-fuelled renewable energy projects.

The company has current operations at 15 operating projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina and Texas. The company sells RNG and renewable electricity, taking advantage of Environmental Attribute premiums available under federal and state policies that incentivize their use.


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