Verde Clean Fuels, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting continued operating losses and strategic developments in its clean fuels technology initiatives. The company, which focuses on deploying its proprietary STG+® process to convert syngas into liquid fuels, has not yet generated revenue from its principal business activities.

For the three months ended September 30, 2024, Verde Clean Fuels recorded a net loss of $2.5 million, a slight improvement from a net loss of $2.6 million in the same period of 2023. The loss per share for Class A common stock was $(0.12), compared to $(0.13) in the prior year. For the nine-month period, the net loss was $7.9 million, down from $8.3 million in 2023, with a loss per share of $(0.39) compared to $(0.34) in the previous year.

Total operating losses for the three months ended September 30, 2024, were $2.8 million, compared to $2.6 million in the same period of 2023. For the nine months, operating losses increased to $8.8 million from $8.2 million year-over-year. General and administrative expenses decreased by approximately 8% to $8.5 million for the nine months ended September 30, 2024, primarily due to a significant unit-based compensation expense recorded in the prior year related to the Business Combination. Research and development expenses increased by 42% to $0.3 million, reflecting higher salaries and benefits from an increased headcount.

As of September 30, 2024, the company had cash and cash equivalents of $21.7 million, down from $28.8 million at the end of 2023. The decrease in cash was attributed to net cash used in operating activities of $6.7 million for the nine months, slightly improved from $6.8 million in the same period of 2023. The company anticipates needing additional capital for ongoing development and construction of its commercial production facility.

Strategically, Verde Clean Fuels entered into a Joint Development Agreement (JDA) with Cottonmouth Ventures LLC in February 2024 to develop a facility in the Permian Basin aimed at producing commodity-grade gasoline. The project is expected to produce approximately 3,000 barrels per day and is currently in the pre-front-end engineering and design (FEED) phase, with completion anticipated by mid-2025. The company has also adapted its technology to process biomass feedstocks into renewable gasoline, indicating potential growth avenues.

Overall, Verde Clean Fuels continues to navigate its development stage while managing operating losses and pursuing strategic partnerships to advance its clean fuels technology.