Greenlane Renewables Signs New $2.4 Million System Supply Contract with Grupo Cocal of Brazil
~Greenlane chosen to supply the biogas upgrading system for the first commercial-scale pipeline injection renewable natural gas project in the Brazilian sugarcane industry~
Vancouver, British Columbia, Canada – July 7, 2020 Greenlane Renewables Inc. (“Greenlane”) (TSXV: GRN / FSE: 52G) today announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has signed a $2.4 million (US$1.8 million) contract with Grupo Cocal (“Cocal”), a Brazilian sugar mill operator that refines sugar and produces ethanol biofuel from sugarcane. Greenlane will supply its Pressure Swing Adsorption (“PSA”) biogas upgrading system for this first-of-its-kind renewable natural gas (“RNG”) project.
The Greenlane supplied system will process and upgrade biogas created from the anaerobic decomposition of byproducts from Cocal’s sugar refining and ethanol production process into clean RNG. The RNG will be used, in part, to displace diesel fuel in Cocal’s commercial operations and vehicle fleet and provide a clean low-carbon supply of RNG for the local gas grid. This is expected to be the first commercial-scale pipeline injection RNG project in the Brazilian sugar cane industry.
Sugar cane refining and ethanol biofuel production have been a major industry in Brazil since the 1970s. Ethanol biofuel consumption in the transportation sector in Brazil exceeds gasoline volumes. There are approximately 350 sugar mills across the country engaged in the refining of sugar and production of ethanol biofuel, which produces vast quantities of byproducts that are ideal feedstocks for the production of RNG.
“Greenlane has long been committed to the Brazilian market and proud to be the market leader,” said Brad Douville, President & CEO of Greenlane. “This represents our fourth contract for the supply of biogas upgrading equipment to customers in Brazil. We’re excited to showcase our system, which is ideally suited for this ground-breaking project, and to expand our relationship with Cocal. The selection process Cocal ran was thorough and rigorous to ensure the best possible system would be provided for their inaugural commercial-scale RNG project. We look forward to helping make this project a success.”
Grupo Cocal is an independent Brazilian sugar and ethanol producer and electricity provider with a focus on environmentally-sustainable energy production and operating processes. The company operates two sugar mills and ethanol refineries in Narandiba and Paraguacu Paulista, both in the State of Sao Paulo.
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.greelanerenewables.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 Cocal with biogas upgrading systems utilizing Greenlane’s proprietary PSA technology for sugar cane refining operations in Brazil; Greenlane’s supplied system’s ability to process and upgrade biogas created from the anaerobic decomposition of Cocal’s byproducts into RNG; the resulting RNG will be used to fuel commercial vehicles and injected into the natural gas pipeline. 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 Cocal with the biogas upgrading systems as contemplated; that Greenlane’s PSA system will be unable to upgrade Cocal’s biogas into RNG; the resulting RNG may not be injected into the natural gas pipeline; the project may not be a success or 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.