Greenlane Renewables Announces $21 Million in System Supply Contracts for Dairy Farm Cluster in California
~Significant contract wins for Greenlane to supply multiple PSA biogas upgrading systems and help advance California’s sustainability objectives~
Vancouver, British Columbia, Canada – June 29, 2020 Greenlane Renewables Inc. (“Greenlane”) (TSXV: GRN / FSE: 52G) today announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has signed $20.6 million (US$15.2 million) in new supply contracts using Greenlane’s Pressure Swing Adsorption (“PSA”) biogas upgrading system. The first contract, worth $17.1 million (US$12.6 million), is for the supply of biogas upgrading and related equipment for a multi-location dairy farm cluster located in California. Greenlane’s biogas upgrading systems will create clean renewable natural gas (“RNG”) for injection into the local gas distribution network owned and operated by Pacific Gas and Electric Company (“PG&E”). The second contract, worth $3.5 million (US$2.6 million), is part of the same cluster, however, is subject to final financing approval. The name of purchaser is being withheld at this time.
“This is a major contract win for us, representing over 185% of 2019’s revenue, for a showcase project in the California dairy industry that will meaningfully contribute toward the State’s greenhouse gas reduction targets,” said Brad Douville, President & CEO of Greenlane. “This is Greenlane’s fourth and largest project to-date to upgrade biogas to high quality RNG for injection into the California gas pipeline system. We’re working with a high caliber team including a dynamic project developer and one of the largest and most experienced players in the RNG industry in the US. We are proud to have been selected as the technology provider for this exciting and important project.”
Greenlane’s ability to provide a portfolio of biogas upgrading technologies is attractive for companies looking for solutions that provide the best economics on every project no matter the size, feedstock or application. Greenlane is the only biogas upgrading company to offer multiple core technologies: water wash, PSA, and membrane separation, to remove trace impurities from the biogas stream and separate carbon dioxide from biomethane to create a clean, high-purity low-carbon fuel: renewable natural gas (RNG).
About Greenlane Renewables
Greenlane Renewables is a leading global provider of biogas upgrading systems that are helping decarbonize natural gas. Our systems produce clean, low-carbon renewable natural gas from organic waste sources including landfills, wastewater treatment plants, dairy farms, and food waste, suitable for either injection into the natural gas grid or for direct use as vehicle fuel. Greenlane is the only biogas upgrading company offering the three main technologies: water wash, pressure swing adsorption, and membrane separation. With over 30 years industry experience, patented proprietary technology, and over 100 biogas upgrading units supplied into 18 countries worldwide, including the world’s largest biogas upgrading facility, Greenlane is inspired by a commitment to helping waste producers improve their environmental impact, green credentials, and bottom line. For further information, please visit www.greenlanerenewables.com.
For more information please contact:
Incite Capital Markets
Eric Negraeff / Darren Seed
Brad Douville, President & CEO, Greenlane Renewables
FORWARD-LOOKING INFORMATION – This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen. The forward-looking information contained in this press release, includes, but is not limited to, Greenlane will supply PSA biogas upgrading systems for multiple dairy farms in California; the resulting renewable natural gas will be injected into the natural gas pipeline; the project will be a success; order fulfilment will start upon receipt of a notice to proceed; the customer receiving approved financing for the second contract; and there will be future opportunities to work together with the customer. The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including management's perceptions of future growth, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation, the risks that Greenlane will not be able to supply the customer with the PSA biogas upgrading systems as contemplated; the resulting renewable natural gas may not be injected into the natural gas pipeline; the project may not be a success or as expected; order fulfilment may not occur as contemplated or at all; the customer may not be able to arrange financing for the second contract; and future opportunities to work with the customer may not be as expected. Additional risk factors can also be found in the Company's filing statement and prospectuses, which have been filed under the Company's SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
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