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MONTAUK RENEWABLES INC - Montauk Renewables, Inc. expands Agricultural Waste Segment through Technology Acquisition

Release Date: 11/05/2021 14:45
Code(s): MKR     PDF:  
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Montauk Renewables, Inc. expands Agricultural Waste Segment through Technology Acquisition

Incorporated in the United States of America
Company number: 85-3189583
NASDAQ share code: MNTK
JSE share code: MKR
ISIN: US61218C1036
("Montauk Renewables" or the "Company")

Montauk Renewables, Inc. Expands Agricultural
Waste Segment Through Technology Acquisition

(NASDAQ: MNTK) announces the acquisition of privately-held NR3, LLC, (NR3) a pioneering
environmental technology and renewable energy company, based in Greensboro, NC, that specializes in
the recovery, refining, and recycling of natural resources from the waste streams of modern
agriculture. Montauk, historically focused on the environmental compliance and recovery of methane
from landfills, commissioned its first agriculture waste-to-energy cluster project in August 2020. The
Company believes the NR3 acquisition could be transformative in expanding its focus on decarbonization
projects and the remediation of environmental and social issues surrounding industrial agriculture in
underserved communities.

As a result of the acquisition, Montauk will look to exclusively deploy specialized, patent-pending, near-
zero-emissions technology of NR3, which, through a commercially proven process, converts animal and
agriculture waste into forms of environmentally friendly, 100% organic, renewable energy alternatives
that can replace the three-primary fossil-fuels of the global energy infrastructure: oil, gas and coal.
Montauk has also retained the founders of NR3, Joe Carroll and Martin Redeker, who are long-time
members of the agricultural community in North Carolina, as leaders of the new business division which
is expected to initially focus on the enormous U.S. swine industry. According to the National Pork
Producer’s Council, in the U.S., more than 60,000 pork producers annually market more than 115 million
hogs, which, on average, provide total gross income of more than $20 billion USD and supports over
550,000 jobs. The world’s pig farmers produced 108.2 million metric tons of pork last year, according to
the USDA Foreign Agricultural Service, with China, the European Union, the United States as the top

Montauk is now in the late stages of evaluating a 5-year, 20-unit development cluster project that could
initially deploy the NR3 technology to be available to convert a significant portion of the 15-million tons
of animal and agricultural waste produced annually by North Carolina swine farms into environmentally
sustainable, economically viable, renewable energy. This initial cluster project will seek to optimize
revenue streams from swine waste lagoon close-outs, and in particular, lagoon waste that cannot
otherwise be processed through conventional digestion technology. It is expected that each unit will be
capable of processing up to 15-tons per day of animal and agricultural feedstock into varying amounts of
Renewable Natural Gas (“RNG”), bio-oil, biochar and creating potential additional financial benefits
through carbon sequestration. Once finalized, this initial project could deploy a multi-year, cumulative
capital investment expected to be in the $100 to $150 million dollar range, and should be accretive to
earnings approximately halfway through its 5-year development cycle. Montauk anticipates this new
business division can be a strategic diversification of earnings across gas and electric commodities,
federal and state attributes through the generation of D3 RINs, LCFS credits, Renewable Energy
Certificates (RECs), soil amendments, and the potential earnings benefits tied to lagoon close-outs and
carbon sequestration.

As part of Montauk’s commitment to environmental and social issues, such as combatting climate change
and promoting environmental stewardship while serving the community, Montauk plans to prioritize its
collection of animal and agricultural waste from farms surrounding historically underserved, at-risk
communities in North Carolina that have higher concentrations of industrial agriculture. With
agriculture’s significant contribution to greenhouse gas emissions in the United States, Montauk views
the acquisition of NR3, and the initial deployment project plans in North Carolina, as a rare and exciting
opportunity to combine environmental stewardship and societal benefit to long-term investment value.

About Montauk Renewables, Inc.
Montauk Renewables, Inc. (NASDAQ: MNTK) (“Company”) is a renewable energy company
specializing in the recovery and processing of biogas from non-fossil fuel sources such as agriculture and
landfills for beneficial use as a replacement to fossil fuels. The Company develops, owns, and operates
RNG projects, using proven technologies that supply renewable fuel into the transportation and electrical
power sectors. With over 30 years’ experience, the Company is one of the largest producers of RNG in
the United States. The Company has an operating portfolio of 12 RNG and three renewable electricity
projects that span six states. For more information visit


Company IR

Pittsburgh, PA USA
11 May 2021

Investec Bank Limited

Date: 11-05-2021 02:45:00
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