Greenlane Renewables Signs $10 Million System Supply Contract for a New RNG Project in the United States Owned by International Energy Company
~Greenlane to supply biogas upgrading system for new RNG project for injection into the local gas grid~
Vancouver, British Columbia, Canada – December 3, 2020 Greenlane Renewables Inc. (“Greenlane”) (TSXV: GRN / FSE: 52G) today announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has signed a $10 million (US$7.7 million) contract for a new renewable natural gas (“RNG”) project in the United States owned by an international energy company. This project will utilize Greenlane’s membrane separation biogas upgrading system. The project owner and location have been withheld at this time. Order fulfilment by Greenlane will start immediately.
“Greenlane continues to gain traction with global energy companies as they seek to diversify their energy portfolios and introduce low carbon intensity fuel options to their customer base.” said Brad Douville, President & CEO of Greenlane. “To be selected for this exciting new project showcases again our unique ability to provide the best solution from our portfolio of multiple upgrading technologies. This is becoming increasingly important as our customers originate, develop and finance a wide range of projects within their respective portfolios each with unique requirements. This ability, combined with our decades of experience and proven track record, makes Greenlane the ideal partner to help all of our customers scale up rapidly.”
Greenlane’s sales pipeline, as announced with its Q3 financial results for the period ending September 30, 2020, and which feeds into the sales order backlog, was in excess of $690 million. The sales pipeline continues to expand and is reflective of the growing global focus on the low-carbon energy transition. The sales order backlog, which refers to unrecognized revenue from contracted projects, was $43.8 million at September 30, 2020, which represents an annual increase of over 350% compared to September 30, 2019.
While uncertainty remains with respect to the COVID-19 pandemic and its ongoing impact on global economies, the Company believes that the energy transition is here to stay. Furthermore, the Company believes that RNG will play a meaningful and growing part in countries’ efforts to stimulate their economies while tackling climate change and moving toward a decarbonized future, in which Greenlane will play an important role.
International energy companies are rapidly moving to adopt decarbonization strategies and increase renewable and low carbon energy sources within their respective portfolios, including RNG. Earlier in 2020, several leading international energy companies announced their respective net zero carbon ambitions by 2050, and subsequently announced specific actions to advance their respective plans such as RNG offtake and project financing.
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 110 biogas upgrading systems supplied into 18 countries worldwide, including the world’s largest biogas upgrading facility, Greenlane is inspired by a commitment to helping waste producers, gas utilities or project developers turn a low-value product into a high-value low-carbon renewable resource. 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 supplying a membrane separation biogas upgrading system for the RNG project in the US for a leading global energy company; the RNG industry will scale rapidly and Greenlane will be a preferred supplier to the RNG industry; utilizing Greenlane’s membrane separation technology for the RNG Project in the US; order fulfilment starting immediately; and RNG will play an important role in global decarbonization and companies’ decarbonization strategies. 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 to the RNG project the biogas upgrading systems as contemplated; Greenlane is not the preferred supplier to the RNG industry; the biogas upgrading system does not perform as expected;the project may not be a success or as expected; order fulfilment may not occur as contemplated or at all; and RNG will not have the impact on global decarbonization or companies’ decarbonization strategies as contemplated or at all. Additional risk factors can also be found in the Company's annual information form, which has 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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