JSE and Nasdaq-listed Montauk Renewables, which converts the biogas released by landfills in the US into renewable natural gas (RNG) for electrical energy, broke ground on a new project in Oklahoma this week.
The group expects to invest between $25m and $35m in the project by its subsidiary Tulsa LFG, which it aims to commission in the first quarter of 2027.
Montauk’s share price on the JSE jumped by 9.25% on Thursday after the group announced the new project, situated at the American Environmental Landfill (AEL), to US investors earlier in the week.
Montauk CEO Sean McClain said the new RNG facility was “indicative of our core growth strategy, to align ourselves with exemplary host businesses, and synchronise their growth needs with our development initiatives”.
“The strong historical and continued growth of available feedstock at this project location is a great example of how successful these partnerships can be,” he said.
The company, which operates 13 projects across the US, takes advantage of US environmental laws which offer premiums on RNG and renewable electricity to incentivise their use.
A report by the US Energy Information Administration (EIA) this week found that US power consumption would hit record highs in 2025 and 2026. The surge comes partly from the growing investment in data centres to power AI and cryptocurrencies, and structural demand growth.
Renewable generation is expected to continue growing, with its share of power generation projected to rise from 23% last year to 25% in 2025 and 27% in 2026. However, natural gas’s share is projected to slide from 42% in 2024 to 40% this year, according to the EIA.
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