Montauk Renewables, Inc. (MNTK)

Company website 2020 Financial Report Stock Analysis

Years

of experience in Renewable Natural Gas projects

Renewable Natural Gas Projects

comprise Montauk's operating portfolio

26^%

CAGR Increase

in revenue, 2014 - 2019

View Our Analysis

The Path to Drawdown: Electrical Utility

Electric utilities play an important role in the path to a world of net-zero emissions. They provide the connective tissue between key Drawdown solutions: renewable energy generation and energy storage. Through long-term power purchase agreements (PPAs), utilities enable renewable energy developers to secure buyers for their power and unlock project finance. Utility companies also often control electrical grids, putting them in the position to prioritize (or deprioritize) the extent to which the grid is outfitted for the intermittency of solar and wind power generation. They also are key players in greenlighting the development of large-scale energy storage.

There are dozens of investor-owned utilities traded on the New York stock exchange (such as Duke, NextEra, Dominion, Xcel, PG&E, etc.), and many of them are purchasing or developing renewable power capacities to provide clean electricity to customers across large regions. We use a stringent criteria to determine which utilities are significantly contributing to the low-carbon energy transition.

About

Montauk Renewables, Inc. (stock ticker: MNTK) is a renewable energy company specializing in the recovery and processing of biogas from landfills and other non-fossil fuel sources. They own and operate renewable renewable gas projects that supply renewable fuel into the transportation and electric power sectors. They're based in Pittsburgh, Pennsylvania.

MNTK's Role in Drawdown

Montauk obtains biogas feedstock from biogas site hosts, and converts biogas into renewable natural gas in one of their 12 renewable natural gas facilities. Renewable natural gas is a pipeline-quality gas from biogas that's produced by microbes as they break down organic matter in the absence of oxygen. Because using biogas as fuel prevents the release of methane, it's considered a sustainable fuel source.

MNTK: What We Like

We'll update this section once Montauk makes sustainability information available.

What We Want to See Improve

Disclose Sustainability Metrics

As of now, Montauk doesn't make any sustainability information available. While we think that Montaul's operations themselves are great for fighting climate change, we also need to know the company's direct contribution to global warming. We'd like them to publish an annual sustainability report that includes absolutes emissions, emissions avoided, energy sources, the amount of waste generated and water usage.

Set Clear Goals

Once these sustainability information is reported, we would push Montauk to go further by setting targets for reducing their emissions and conserving resources. These targets should be clear and quantitative, in-line with the global commitment to stay below 1.5°C of global warming. They should also be accompanied by specific timelines for achieving those targets.

Transition to Zero-Emissions Energy

Montauk own and operate 15 renewable natural gas projects (p. 14). Montauk can significantly reduce their direct emissions by switching to clean or renewable energy to operate these facilities.

Related Green Energy Stocks in the Climate Index

View All Climate Index Stocks →

Allocated	Company	Description
3.32%	Exelon Corp. (EXC)	Exelon is one of the largest US electric utility and operates nuclear, wind, solar, hydro plants. They’re a key player in decarbonizing the power sector
2.61%	Sempra Energy (SRE)	Sempra Energy develops energy infrastructure and provides electricity and gas. Green utilities are the bedrock for developing more renewable energy
1.53%	Companhia Energética de Minas Gerais (CIG)	CIG is one of the largest power utilities in Brazil that generates its electricity from renewable sources. They’re a model of how utilities should go green
1.48%	PG&E (PCG)	PG&E is a public utility that offers electricity and natural gas to customers and growing their clean energy capacity. Green utilities are key to Drawdown
1.30%	Avangrid, Inc. (AGR)	Avangrid generates most of its electricity through solar, onshore wind, geothermal, hydroelectric and biomass - an exemplar of green utilities
0.71%	Algonquin Power & Utilities Corp. (AQN)	Algonquin Power & Utilities operates renewable and clean energy assets throughout North America. These are key sources of energy in a decarbonized world
0.19%	Enel Chile S.A. (ENIC)	Enel generates electricity from hydroelectric, solar, wind, and geothermal. They’re helping expand clean energy capacity
0.10%	Montauk Renewables, Inc. (MNTK)	Montauk has facilities that generate renewable natural gas, a sustainable fuel. Electric utilities like Montauk are key to expanding clean energy capacity