Montauk Renewables, Inc. (MNTK): Business Model Canvas [Dec-2025 Updated]

You're looking at a company, Montauk Renewables, Inc., that's set to pull in $150 million to $170 million in Renewable Natural Gas revenue by 2025, but they are deep in the weeds of complex, definitely regulated markets, especially with those fluctuating RIN (Renewable Identification Number) prices. As someone who has spent two decades dissecting these energy plays, I mapped out the entire Montauk Renewables business model-the nine essential blocks-to show you exactly how they convert waste streams into cash flow, from pipeline injection to selling those crucial environmental credits. Dive into the canvas below to see the partnerships, resources, and revenue streams that underpin this operation.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships Montauk Renewables, Inc. relies on to keep its biogas-to-RNG and emerging fuel pathways moving forward. These aren't just vendor agreements; they are strategic alignments that unlock new revenue streams and product markets. Honestly, the complexity here is in managing the feedstock supply alongside the off-take demand for everything from RINs to green methanol.

The Key Partnerships block is where Montauk Renewables, Inc. secures its inputs-the waste streams-and its outputs-the committed buyers for its various products. Here's a breakdown of the most critical alliances as of late 2025.

Strategic Alliances and Joint Ventures

Montauk Renewables, Inc. is actively diversifying its end-use applications for biogas beyond traditional Renewable Natural Gas (RNG) and Renewable Electricity Generation (REG). This is evident in the formation of key joint ventures.

• The Emvolon joint venture targets biogas-to-green methanol projects.
• The partnership aims for an aggregate annual production capacity of up to 50,000 metric tons of green methanol by 2030.
• The inaugural project at the Atascocita Humble Renewable Energy (HRE) facility in Humble, Texas, is set to generate up to 6,000 metric tons of green methanol annually by converting flared gas.
• The GreenWave Energy Partners, LLC joint venture was formed to address limited RNG utilization for transportation by offering third-party volumes access to proprietary transportation pathways.
• Montauk Renewables, through its subsidiary Pesta Energy, LLC, holds a 51% ownership stake in GreenWave, with Pioneer Renewable Energy Marketing holding the remaining 49%.

Here's a quick look at the structure and targets of these major collaborations:

Long-term Offtake Agreements

Securing long-term, fixed-price commodity sales is crucial for de-risking development capital expenditures. The agreement with EE North America is a prime example of this strategy in action, diversifying revenue beyond the volatile RIN market.

Montauk Renewables, Inc. signed a contract with EE North America to supply biogenic carbon dioxide ($\text{CO}_2$) from all its Texas facilities. This is a 15-year contract, with initial delivery expected to begin in 2026. The committed volume is 140 thousand tons per year, which EE North America will use to produce e-methanol at its Texas Power-to-X facility. This arrangement creates a new fixed-price commodity sales revenue stream for Montauk Renewables, Inc.

Feedstock Providers: Landfill and Agricultural Waste Site Owner-Operators

The foundation of Montauk Renewables, Inc.'s business remains the reliable access to biogas feedstock, which comes from long-standing relationships with waste site operators. Montauk Renewables, Inc. currently operates 11 RNG projects across four states.

These partnerships involve securing gas rights and leases to process the methane. For instance, the project in Tulsa, Oklahoma, with American Environmental Landfill, Inc. (AEL), is a prized relationship. The new RNG facility at the AEL site is anticipated to have a production nameplate capacity averaging approximately 1,500 MMBtu per day, designed to process all available inlet gas feedstock.

Furthermore, development efforts in North Carolina, such as the Montauk Ag Renewables project, involve the conversion of swine waste to energy.

Utility Relationships for Power Purchase Agreements (PPAs)

For its Renewable Electricity Generation (REG) assets, Montauk Renewables, Inc. partners with utilities to secure the sale of generated power, often through PPAs. The company reaffirmed its 2025 forecast for REG production to range between 178,000 megawatt hours and 186,000 megawatt hours, with corresponding revenues projected between $17 million and $18 million.

Specifically, in July 2025, Montauk signed a 10-year PPA for all power produced from the first phase of the Montauk Ag Renewables project in Turkey, NC. The PPA price is structured with a set tariff, considering factors like time of day, and has an average price of $48/MWh.

Finance: draft 13-week cash view by Friday

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Key Activities

You're looking at the core actions Montauk Renewables, Inc. must execute daily to keep the lights on and grow. It's a mix of heavy engineering, commodity trading savvy, and navigating complex environmental rules. Here's the breakdown based on late 2025 figures.

Biogas recovery and conversion into RNG and electricity.

Montauk Renewables, Inc. focuses on capturing methane and turning it into two primary products: Renewable Natural Gas (RNG) and Renewable Electricity (REG). The company has operations at 13 projects across diverse U.S. locations as of late 2025.

For the third quarter of 2025, RNG production reached 1.4 million MMBtu, which was a 3.8% increase over the third quarter of 2024. In that same quarter, Renewable Electricity production was 44,000 MWh, an increase of 3,000 MWh compared to the third quarter of 2024. For the full year 2025, Montauk Renewables, Inc. expects RNG production volumes to be in the range of 5.8 million to 6.0 million MMBtu, and REG production volumes between 175,000 and 180,000 MWh.

Here's a look at the production and revenue targets for the full year 2025:

Self-marketing and trading of Environmental Attributes (RINs).

The trading of Renewable Identification Numbers (RINs) is critical, as the RNG segment accounts for approximately 90% of total revenue. Profitability is highly dependent on the market price of these attributes. In the third quarter of 2025, Montauk Renewables, Inc. self-marketed 12.4 million RINs, a decrease of 21.2% (or 3.3 million) compared to the third quarter of 2024. The average realized RIN price in Q3 2025 was $2.29, marking a decrease of approximately 31.4% from $3.34 in Q3 2024. As of September 30, 2025, there were 0.7 million RINs generated but unseparated from 2025 RNG production.

To be fair, the company made strategic decisions to sell more production under fixed/floor-price arrangements, which meant fewer RINs were available for sale in Q3 2025 compared to Q3 2024. Still, in the first quarter of 2025, the company sold 9.9 million RINs, an increase of 25.3% year-over-year, with an average realized price of $2.46.

Development of new projects, like the Ag Renewables initiative.

Montauk Renewables, Inc. is actively growing its capacity. The second RNG processing facility at the Apex site in Amsterdam, Ohio, was completed and commissioned in the second quarter of 2025. The company is also advancing its Montauk Ag Renewables project in Turkey, NC.

For the Montauk Ag Renewables project in Turkey, NC, Montauk Renewables, Inc. signed a 10-year Power Purchase Agreement (PPA) in July 2025 covering 100% of the power from the first phase, with an average price based on a set tariff of $48/MWh. Capital expenditures related specifically to the Montauk Ag Renewables project totaled $51.90 million during the first nine months of 2025. Other development initiatives that remain active include CO2 development and biomethanol development.

Plant maintenance and operational enhancement programs.

Operational upkeep is a significant activity, showing up in the operating expenses. For the RNG facilities in the third quarter of 2025, operating and maintenance expenses were $13.9 million, an increase of $1.3 million (or 10.6%) compared to the third quarter of 2024. In the second quarter of 2025, RNG facility O&M expenses were $17.0 million, up 22.0% (or $3.1 million) year-over-year. These increases were driven by factors like preventative maintenance, media changeout maintenance, and wellfield operational enhancement programs at facilities such as Apex, McCarty, and Rumpke.

For the Renewable Electricity Generation segment, Q1 2025 O&M expenses were $3.4 million, a 46.2% increase year-over-year, primarily due to non-capitalizable expenses at the Montauk Ag Renewables projects. By Q3 2025, REG O&M expenses decreased to $2.6 million, down 4.3% from Q3 2024, due to timing of annual engine maintenance at the Tulsa facility.

Regulatory compliance and pathway certification management.

Managing regulatory pathways is non-negotiable for realizing the value of RINs. The Environmental Protection Agency (EPA) indicated an intention to finalize the Supplemental Rule and the Renewable Volume Obligations (RVOs) for 2025, 2026, and 2027 by the end of 2025. Regulatory actions, specifically the EPA Biogas Regulatory Reform Rule (BRRR K2 separation), impacted the timing of RIN commitment in 2025. Montauk Renewables, Inc. had zero exposure to the 2024 compliance waiver because all 2024 D3 RINs were sold previously. In October 2025, the company filed response comments with the North Carolina Utility Commission (NCUC) regarding compliance obligations.

The company sold 9.9 million RINs in Q1 2025, all from 2024 gas production, while regulatory reforms temporarily impacted the timing of 2025 RIN commitments. You need to track these regulatory milestones; the EPA's finalization timeline could slip into 2026 due to government shutdown impacts on staffing.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Key Resources

Montauk Renewables, Inc. possesses a core set of physical and intellectual assets underpinning its operations as of late 2025.

The operational footprint includes a portfolio of renewable energy projects across the United States.

Securing the fuel source is critical, and Montauk Renewables has established contractual access to necessary biogas feedstock.

• Long-term agreements with farms secure access to waste from at least 200 thousand hog spaces for the North Carolina Ag Renewables project.
• The final tranche of feedstock for the Pico site expansion was anticipated in the second quarter of 2025.

The value derived from regulatory compliance forms a significant resource, captured in environmental attributes.

• Average realized RIN (Renewable Identification Number) price in the third quarter of 2025 was $2.29.
• Total RINs available for sale in Q3 2025 were 12,420, a decrease of 21.9% from 15,896 in Q3 2024.
• Approximately 3.0 million RINs were generated but unseparated as of June 30, 2025, due to EPA BRRR rule impacts on separation timing.
• The Montauk Ag Renewables project is expected to have an annual REC (Renewable Energy Credit) capacity of approximately 120 RECs.

Capital deployment for growth is a necessary resource, evidenced by recent investment levels.

Montauk Renewables, Inc. used $79.22 million for investing activities, primarily capital expenditures, in the first nine months of 2025.

This CapEx included specific allocations:

• $51.90 million related to the ongoing development of Montauk Ag Renewables.
• $8.53 million for the contractually obligated Rum Pee RNG relocation project in Cincinnati, Ohio.

Proprietary and strategic technology/partnerships are also key assets.

• The company formed the joint venture GreenWave Energy Partners, LLC, expecting to act as the RIN separator for the partnership.
• The Ag Renewables project in North Carolina, expected to commence commercial operations in 2026, involves the conversion of swine waste to energy.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Value Propositions

You're looking at the core value Montauk Renewables, Inc. (MNTK) delivers across its operations, which is essentially turning waste gas into valuable, low-carbon commodities. This isn't just about making power; it's about creating multiple revenue streams from a single waste stream.

Supply of carbon-negative Renewable Natural Gas (RNG)

The primary value here is providing a direct replacement for fossil fuels, specifically in the transportation sector through Renewable Identification Numbers (RINs). Montauk Renewables, Inc. is one of the largest U.S. producers of RNG, using proven technologies to supply this renewable fuel. You see this commitment in their production targets; for the full year 2025, the company maintained guidance expecting RNG production to range between $\mathbf{5.8}$ and $\mathbf{6.0}$ million MMBtu, targeting RNG revenues between $\mathbf{\$150}$ and $\mathbf{\$170}$ million. This is a tangible, measurable output for the market.

Here's a look at their recent RNG output and inventory status as of late 2025:

They are definitely navigating RIN price volatility, but the physical production continues to grow, with new projects coming online, like the Second Apex RNG Facility, which was commissioned in June 2025.

Methane capture and greenhouse gas (GHG) emission reduction

The environmental value proposition is inherent in the process: capturing methane, a potent greenhouse gas, before it enters the atmosphere and converting it. This directly addresses climate impact for their landfill and farm hosts. In 2024, Montauk Renewables, Inc. generated approximately $\mathbf{6.2\%}$ of all $\text{CNG}$ and $\text{LNG}$ $\text{D3}$ $\text{RINs}$ in the United States, quantifying their contribution to displacing fossil fuels. This capture and conversion is the foundation of their environmental stewardship claim.

The value proposition for hosts includes:

• Preventing the release of potent methane gas.
• Providing a mechanism for environmental compliance.
• Creating a new revenue stream from a liability.

Reliable, dispatchable renewable electricity generation

While RNG is the focus, Montauk Renewables, Inc. also provides reliable power. They operate two Renewable Electricity projects in California and Oklahoma, utilizing reciprocating engine generator sets. The total design capacity for this segment stands at approximately $\mathbf{29.1}$ MW. For the full year 2025, the company projected Renewable Electricity (REG) production volumes between $\mathbf{175}$ and $\mathbf{180}$ thousand MWh, with associated revenues guided to be between $\mathbf{\$17}$ and $\mathbf{\$18}$ million. This power is dispatchable, meaning it can be called upon when needed, which is a premium feature in grid management.

Monetization of waste streams for landfill and farm hosts

For the entities hosting the biogas sources-landfills and agricultural farms-Montauk Renewables, Inc. offers a clear financial benefit by taking over the management and monetization of their waste gas. This transforms a disposal cost or environmental risk into a partnership. The company is expanding this model, for instance, with the Montauk Ag Renewables project in North Carolina, which is expected to have annual REC (Renewable Energy Certificate) capacity of approximately $\mathbf{120}$ $\text{RECs}$ and has a $\mathbf{10}$-year power purchase agreement at an average price of $\mathbf{\$48}/\text{MWh}$ for its initial electric production phase. This shows a direct, contracted value transfer to the host.

Long-term supply of biogenic $\text{CO}_2$ for industrial use

A newer, yet significant, value stream is the capture, cleaning, and liquefaction of biogenic $\text{CO}_2$ for industrial customers, specifically for e-methanol production. Montauk Renewables, Inc. signed a long-term contract to deliver $\mathbf{140,000}$ tons/year of this $\text{CO}_2$ to a Texas-based e-methanol facility, with first delivery expected in 2027. This contract has a minimum $\mathbf{15}$-year term. The Q2 2025 results indicated contracted total revenues for this specific $\text{CO}_2$ delivery ranging from $\mathbf{\$170,000}$ to $\mathbf{\$201,000}$ (though this figure needs context against the $\mathbf{140,000}$ tons/year volume). This creates a stable, long-duration revenue source by turning a captured byproduct into a critical feedstock for sustainable fuels.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Customer Relationships

You're looking at how Montauk Renewables, Inc. (MNTK) manages its key customer and stakeholder relationships, which heavily rely on long-term agreements and navigating the complex regulatory landscape for environmental attributes.

Long-term, fixed-price or floor-price contracts

Montauk Renewables, Inc. secures revenue stability through long-term agreements, particularly for its Renewable Electricity Generation (REG) assets. For instance, in July 2025, the company executed a 10 year Power Purchase Agreement (PPA) for the initial phase of the Montauk Ag Renewables project in Turkey, North Carolina, covering 100% of the electric produced at an average price of $48/MWh. This contrasts with the historical practice where, in 2022, the company converted 100% of its REG and Environmental Attribute monetization under fixed-price agreements. For Renewable Natural Gas (RNG) environmental attributes, specifically Renewable Identification Numbers (RINs), the strategy shifts based on market outlook; in the third quarter of 2025, the decision to sell an increased amount of production under fixed/floor-price arrangements resulted in fewer RINs available for sale compared to the third quarter of 2024.

Here's a look at the contract/pricing context:

Direct engagement with regulatory bodies (EPA, state agencies)

Direct interaction with agencies like the Environmental Protection Agency (EPA) and state commissions is crucial, as profitability depends on the market price of Environmental Attributes. Management noted the impact of the EPA's delay of the 2024 Renewable Fuel Standard (RFS) compliance deadline on the RNG industry. Regulatory uncertainty, such as that stemming from the EPA Biogas Regulatory Reform Rule (BRRR), temporarily affected the timing of 2025 RIN commitments. The company has taken proactive steps, such as having zero exposure to the 2024 compliance waiver due to prior sales of all 2024 D3 RINs. Furthermore, in October 2025, Montauk Renewables submitted comments to the North Carolina Utilities Commission (NCUC) to modify and delay 2025 requirements of the NC Clean Energy Portfolio Standards. The EPA indicated an intention to finalize RVOs for 2025, 2026, and 2027 by the end of 2025.

• Regulatory bodies requiring permits, approvals, and consents: EPA, state agencies
• Regulatory rule impacting RIN separation timing: EPA BRRR
• RINs sold in Q1 2025 were all from 2024 gas production: 9.9 million RINs
• RINs generated but unseparated as of June 30, 2025, due to BRRR: Approximately 3.0 million RINs

Dedicated sales team for Environmental Attribute self-marketing

Montauk Renewables, Inc. self-markets a significant portion of its RINs, making its revenue highly sensitive to market pricing and sales timing decisions. The strategic decision to not self-market a significant amount of RINs in the fourth quarter of 2024 contributed to a decrease in net income for that year. In the third quarter of 2025, the decrease in total revenues compared to the prior year was directly related to a decrease in the number of RINs the company self-marketed from 2025 RNG production. The company has committed to transferring most of its RINs inventory from 2025 RNG production at prices approximating the D3 RIN Index.

Joint venture management for market access and risk sharing

To address limited capacity for RNG utilization in transportation, Montauk Renewables established a joint venture. In the second quarter of 2025, the company entered an agreement to form GreenWave Energy Partners, LLC. This partnership was formed with Pioneer Renewables Energy Marketing. The primary goal is to offer third-party RNG volumes access to exclusive and proprietary transportation pathways. Montauk Renewables expects to act as the RIN separator for this joint venture. The GreenWave partnership began separating RINs for a limited volume in the third quarter of 2025, with management expecting increased benefits starting in the fourth quarter of 2025.

Finance: draft 13-week cash view by Friday.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Channels

You're looking at how Montauk Renewables, Inc. (MNTK) gets its product-Renewable Natural Gas (RNG) and Renewable Electricity (REG)-out to the market, and how they monetize the associated environmental credits. It's a multi-pronged approach, balancing direct sales, pipeline access, and market trading.

Natural gas pipeline injection for RNG distribution

The core distribution for RNG involves injecting the cleaned gas into existing natural gas pipelines. This is how Montauk gets its product into the broader energy market for use as transportation fuel, which is key for generating the valuable Renewable Identification Numbers (RINs).

For the full year 2025, Montauk Renewables reaffirmed its guidance projecting RNG production volumes to range between 5.8 million MMBtu and 6.0 million MMBtu. Looking at the quarterly performance, the company produced approximately 1.4 million MMBtu of RNG in the third quarter of 2025, which was an increase of 53 thousand MMBtu compared to the third quarter of 2024. As of early 2025, Montauk Renewables operated 11 RNG projects across four states, with a total design capacity of approximately 32,922 MMBtu/day. The commissioning of the second RNG processing facility at the Apex landfill was expected in the second quarter of 2025.

Direct sales to utilities via Power Purchase Agreements (PPAs)

For the Renewable Electricity (REG) segment, Montauk uses direct sales agreements with utilities. This locks in a revenue stream for the power generated from landfill gas.

In July 2025, Montauk signed a Power Purchase Agreement (PPA) for all power produced from the first phase of its Montauk Ag Renewables project in Turkey, North Carolina. This PPA has a term of 10 years, covering 100% of the electric produced, with the price based on a set tariff that considers factors like demand, season, and time of day, resulting in an average price of $48/MWh. For the full year 2025, REG revenues were forecasted to range between $17 million and $18 million.

Environmental Attribute trading markets (RINs, RECs)

Monetizing the environmental benefits is a critical channel, primarily through the sale of RINs (Renewable Identification Numbers) tied to the RNG, and RECs (Renewable Energy Certificates) from REG projects.

The financial results for the third quarter of 2025 showed total revenues of $45.3 million. The average realized RIN price in the third quarter of 2025 was $2.29, a decrease of approximately 31.4% from the $3.34 seen in the third quarter of 2024. The company sold 12.4 million RINs in Q3 2025, representing a year-over-year decrease of 3.3 million or 21.2%, which management attributed to selling more production under fixed/floor-price arrangements. As of September 30, 2025, 0.7 million RINs were generated and unseparated. The full-year 2025 guidance for RNG revenues, which heavily depends on RINs, was reaffirmed between $150 million and $170 million.

Here's a quick look at the environmental attribute monetization metrics for the third quarter of 2025:

Direct delivery channels for biogenic CO2

Montauk Renewables is establishing a direct commodity sales channel by capturing, cleaning, and liquefying biogenic CO2 from its Texas facilities for use in e-methanol production.

The company signed a long-term contract with EE North America stipulating the annual delivery of 140,000 tonnes/year of biogenic CO2 over a minimum 15-year term. The initial delivery period is expected to start in 2026. This arrangement creates a new fixed-price commodity revenue stream for Montauk Renewables.

Transportation fuel dispensing network access via GreenWave

To address limited capacity for utilizing RNG in transportation fuel, Montauk entered an agreement in the second quarter of 2025 to form a joint venture, GreenWave Energy Partners, LLC.

• Primary goal: Offer third-party RNG volumes access to exclusive, unique, and proprietary transportation pathways.
• Montauk Renewables expects to act as the RIN separator for the joint venture.

This JV is a strategic move to ensure better utilization and monetization of the RNG produced, which directly impacts the value of the associated RINs.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Montauk Renewables, Inc. (MNTK) as of late 2025. Understanding these segments is key because the revenue mix-from fuel credits to direct commodity sales-is what drives the top line. Honestly, the customer base is segmented by the end-use of the biogas they process, whether it's into pipeline-quality gas, electricity, or even captured carbon dioxide.

Transportation sector (RNG for vehicle fuel)

The transportation sector is a primary driver of value for Montauk Renewables, Inc. through the monetization of Renewable Identification Numbers (RINs). These credits are essential for compliance under federal mandates like the Renewable Fuel Standard (RFS), which dictates blending renewable fuels into transportation fuel. You can see the direct link between their RNG production and the environmental attributes they sell to this market. For instance, in the first quarter of 2025, Montauk Renewables sold 9.9 million RINs, which helped push their RNG segment revenue to $38.5 million for that quarter. By the third quarter of 2025, they marketed 12.4 million RINs, though the average realized price per RIN had softened to $2.29 from $3.34 in Q3 2024. The company is projecting full-year 2025 RNG revenues to land between $150 million and $170 million, which is heavily dependent on the sale of these RINs and similar environmental attributes.

Local utilities and refiners purchasing RNG/REG

Local utilities and large refiners form another critical customer group, primarily purchasing the Renewable Natural Gas (RNG) for injection into gas pipelines or for power generation. Montauk Renewables, Inc. explicitly targets local utilities and large refiners in the natural gas and refining sectors as customers for their RNG and Renewable Identification Numbers (RINs). A key example of this segment's importance, and its associated risk, is the Blue Granite RNG project, where the company impaired equipment after a utility decided not to accept RNG into its distribution system. On the Renewable Electricity Generation (REG) side, the Montauk Ag Renewables project in North Carolina is negotiating with utilities to secure a 10-year power purchase agreement, with an expected average price of $48/MWh for the electricity production.

Industrial gas and chemical companies (Biogenic CO2 buyers)

This segment represents a diversification of revenue away from just fuel credits and power. Montauk Renewables, Inc. has secured a significant, long-term contract for the beneficial use of its captured carbon dioxide. Specifically, they signed a contract to deliver 140 thousand tons per year of biogenic CO2 from their Texas facilities to a Texas-based e-methanol facility, which is a subsidiary of European Energy. This is a minimum 15-year term agreement, though the first delivery isn't expected until 2027. This customer takes a waste product-the captured carbon-and turns it into a fixed-price commodity revenue stream for Montauk Renewables, Inc.

Landfill and livestock farm owner-operators (host sites)

The owner-operators of the source material-landfills and livestock farms-are the foundational partners, as they provide the biogas feedstock. Montauk Renewables, Inc. develops, owns, and operates projects on these sites, often entering into long-term arrangements. The company maintains operations across 13 projects in states like Ohio, Pennsylvania, Texas, and Idaho. You see this relationship in action with specific site developments; for example, the Rumpke facility is undergoing a relocation with expected capital expenditures between $80 million to $110 million. Furthermore, the Montauk Ag project in North Carolina focuses on converting swine waste, with commercial operations targeted for 2026. Capital expenditures for this specific agricultural project alone were $51,895 thousand in the third quarter of 2025.

Commercial and industrial businesses seeking decarbonization

While not always a direct revenue segment in the same way as RIN sales, commercial and industrial (C&I) businesses are an indirect but important customer base, as they represent the ultimate end-users driving demand for low-carbon energy solutions like RNG. The growth in RNG demand is fundamentally tied to C&I entities setting decarbonization targets. Montauk Renewables, Inc. is actively positioning its RNG to meet this demand, which is reflected in its overall production guidance. The company expects to produce between 5.8 million and 6.0 million MMBtu of RNG for the full year 2025. The development of the second Apex RNG facility, which came online in Q2 2025, is part of scaling up capacity to meet this broader market need for lower-carbon fuel alternatives.

Here's a quick look at the key operational metrics tied to these customer segments for the first three quarters of 2025:

The company's ability to service these segments relies on its operational footprint, which includes facilities like Apex, Rumpke, McCarty, and Coastal. Also, remember that regulatory shifts, like the EPA Biogas Regulatory Reform Rule, can defintely impact the timing of RIN commitments, which affects revenue recognition from the transportation segment customers.

Finance: draft 13-week cash view by Friday.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Cost Structure

You're looking at the expenses Montauk Renewables, Inc. (MNTK) is facing to keep its operations running and to build out future capacity. The cost structure is heavily weighted toward initial capital outlays for new projects, alongside the ongoing operational costs of running existing facilities.

High capital costs for new projects are a major drain. For instance, the Montauk Ag Renewables project, which involves swine farms in North Carolina, carries a significant capital requirement, estimated by some analyses to be around $200 million. This is a different scale compared to typical landfill RNG projects. In the third quarter of 2025 alone, capital expenditures related to this project and the Rumpke RNG relocation project totaled $51.90 million and $8.53 million, respectively, as part of $79.22 million in total investing activities for the quarter.

Day-to-day running costs are broken down by segment. For the Renewable Natural Gas (RNG) segment, the Operating and maintenance (O&M) expenses in the third quarter of 2025 hit $13.9 million. This was an increase of 10.6%, or $1.3 million, year-over-year, driven by preventative maintenance and operational enhancements at facilities like Rumpke, Atascocita, and Apex. Separately, the Renewable Electricity Generation segment had O&M expenses of $2.6 million in Q3 2025.

Here's a quick look at those key third-quarter 2025 expenses:

General and administrative (G&A) expenses were $6.5 million for the third quarter of 2025. That's a significant drop of $3.5 million, or 35.1%, compared to the $10.0 million reported in Q3 2024, largely due to the accelerated vesting of restricted share awards following an employee termination.

The cost of securing the raw material, the biogas feedstock, is embedded within the RNG O&M costs, as evidenced by the mention of wellfield operational enhancement programs. Furthermore, the business model involves revenue-sharing with host sites, which is a direct cost of securing the gas supply, although the specific dollar amount of the sharing arrangement isn't itemized separately from the overall O&M line in the latest reports. You can see the company is focused on aligning with exemplary host businesses, which implies negotiated, ongoing cost-sharing agreements.

Finally, there are costs associated with navigating the regulatory environment. Montauk Renewables relies heavily on Environmental Attributes, like RINs, for revenue. Costs here include the internal effort and external fees for regulatory compliance and the separation of these attributes. As of September 30, 2025, the company had 0.7 million RINs generated but unseparated, which implies ongoing costs related to processing, verification, and eventual sale to realize that revenue.

Finance: draft 13-week cash view by Friday.

Montauk Renewables, Inc. (MNTK) - Canvas Business Model: Revenue Streams

You're looking at the core ways Montauk Renewables, Inc. (MNTK) brings in cash, which is heavily tied to both commodity production and regulatory credits. Honestly, the mix shows a clear strategy to diversify away from just relying on the EPA Renewable Fuel Standard (RFS) volumes, though those attributes are still a major driver.

Here's a quick look at the key financial projections for the full fiscal year 2025:

The Sale of Renewable Natural Gas (RNG) forms the largest expected revenue bucket for Montauk Renewables, Inc. in 2025, guided to be between $150 million and $170 million, based on projected production volumes between 5.8 million and 6.0 million MMBtu.

The Sale of Environmental Attributes is where things get interesting, as profitability is defintely still highly dependent on these market prices. You saw the impact in the first quarter of 2025:

• The company sold 9.9 million Renewable Identification Numbers (RINs) in Q1 2025, a 25.3% increase year-over-year.
• The average realized RIN price in Q1 2025 settled at $2.46, which was about a 24.3% drop from the $3.25 average in Q1 2024.
• By Q3 2025, the average realized RIN price was down further to $2.29.
• Montauk Renewables, Inc. generated about 6.2% of all CNG and LNG D3 RINs across the United States in 2024.
• For the REG segment, Montauk Renewables, Inc. is actively engaging with regulators in North Carolina to confirm eligibility for Renewable Energy Certificates (RECs), with commercial production there expected to start in 2026.

The Sale of Renewable Electricity Generation (REG) provides a more stable, though smaller, revenue component, projected between $17 million and $18 million for the full year 2025. This corresponds to projected production volumes in the range of 175,000 to 186,000 MWh.

Biogenic CO2 sales under long-term contracts represent a newly diversified, fixed-price stream. Montauk Renewables, Inc. has a contract to deliver 140 thousand tons per year of biogenic CO2 from its Texas facilities to an e-methanol producer. This is a long-term commitment, set for a minimum 15-year term, though the initial delivery isn't expected until 2027.

Finally, Natural gas commodity sales are a component, though the search results only give a snapshot of price movement rather than a specific revenue figure. We do know that natural gas index pricing saw a significant jump, increasing approximately 62.9% during the first quarter of 2025 compared to the first quarter of 2024, which would impact the realized price on any uncontracted or index-linked sales.

Finance: draft 13-week cash view by Friday.