Verde Clean Fuels shifts strategy away from large-scale plant development

Verde Clean Fuels, Houston, aims to reduce its operating costs by 50% this year as part of a larger ‘capital‑lite’ strategy aimed at identifying the most effective and financially disciplined path to commercialize its liquid fuels processing technology.

The move comes weeks after the company suspended development of a natural gas-to-gasoline (GTG) project in the Permian basin. At the time, the company cited “changing market conditions driven by increasing demand for natural gas,” in the region, while Verde’s chief executive officer, Ernest Miller, said knowledge collected from the work completed would be useful as the company explored other opportunities to deploy its proprietary synthesis gas (syngas)-to-gasoline plus (STG+) liquid fuels technology.

At the forefront is a move away from capital‑intensive plant development. Over $110 million has been invested in development and demonstrating the STG+ technology since 2007, including the construction and operation of the demonstration plant that completed over 10,500 hours of operation.

Strategy shift

The company now plans to eliminate roles tied to large‑scale plant development and shift its business model toward technology licensing and providing engineering, technical, and operational services.

“We own a proprietary advanced-fuel conversion technology platform designed to convert low-value or stranded feedstocks into higher-value clean transportation fuels through an integrated, scalable, process-driven system. We are focused on the most optimal path to deploy our STG+® technology while being extremely disciplined with our resources. We are evaluating strategic alternatives that may be available to maximize shareholder value,” said Ron Hulme, Verde's chairman of board of directors. 

The company is also streamlining its board of directors, cutting director cash compensation by 80%, with two directors not standing for reelection. A newly formed Restructuring Committee, with Verde director Jonathan Siegler—who serves as managing director and chief financial officer of Bluescape Energy Partners, an affiliate of Verde’s primary shareholder—appointed as the sole member, will oversee execution of the revised strategy.

Verde expects to maintain more than $50 million in cash and equivalents by the end this year's first quarter, with no change to its current share count.