Houston-based Verde Clean Fuels said last week it executed a joint agreement with Cottonmouth Ventures for the proposed development, construction and operation of a facility in Martin County to produce commodity-grade gasoline using associated natural gas from Diamondback Energy in Permian Basin. Cottonmouth is a subsidiarity of Midland’s Diamondback. The agreement provides “a pathway forward for the parties to reach final definitive documents and final investment decision.”
The project is expected to produce about 3,000 barrels per day of refined gasoline using Verde’s patented process. Verde’s announcement added, “By consuming natural gas in the pipeline-constrained Permian Basin as feedstock, the proposed project could demonstrate the ability to mitigate the flaring of up to 34 million cubic feet of natural gas per day while also providing a high-value, salable product.”
Kaes Van’t Hof, president of Diamondback, said Feb. 13, “This agreement … fits perfectly with Diamondback’s strategy to decarbonize the oilfield while ensuring a return for our investors… The scalability of the project is incredibly exciting with similar natural gas-to-gasoline facilities across Diamondback’s locations in west Texas.”