~Technically advanced project will supply upgraded biogas (RNG) to the Southern California Gas Company (“SoCalGas”) pipeline meeting stringent requirements~
Burnaby, British Columbia, Canada – December 27, 2019 Greenlane Renewables Inc. (“Greenlane”) (TSXV: GRN) today announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has secured a new $8.3 million (US$6.3 million) biogas upgrading contract with a customer in California, whose name is being withheld at this time for confidentiality reasons. Engineering work will begin immediately on the California-based landfill project. Order fulfilment will begin immediately upon completion of permitting and approval of submittals by the customer, expected by early to mid 2020, with delivery expected to occur within approximately six months of commencement.
The facility is expected to process 1,600 standard cubic feet per minute of landfill gas to produce ~97% pure biomethane, or approximately 380,000 gigajoules (GJ) (or 360,000 million British Thermal Units (MMBTU)) annually, of clean Renewable Natural Gas (“RNG”) for direct injection into the local gas distribution network owned and operated by SoCalGas, the largest natural gas utility in the United States. In addition, the residual off-gas, a byproduct of the biogas upgrading process, will be blended with natural gas to generate power for on-site facilities and processes. This project is designed to achieve stringent SoCalGas Rule 30 quality specifications and may be the first of its kind to work in conjunction with power generation to target 100% methane recovery. To date, there are no projects upgrading landfill gas into RNG for injection into SoCalGas’ network.
Greenlane’s PSA technology solution was selected for this project based on several criteria, including reliability, overall life-cycle cost, and ability to work seamlessly with other processes. Biogas upgrading is a process through which trace impurities in the biogas stream are removed and carbon dioxide is separated from methane (CH4) to produce pipeline-spec biomethane suitable for injection into the natural gas grid and for direct use as vehicle fuel.
“This project is a great opportunity to showcase Greenlane’s advanced and reliable technology,” said Brad Douville, President & CEO of Greenlane. “Our solution is targeting 100% methane capture from the landfill site. Recovered landfill methane will be upgraded and then piped directly into SoCalGas’ natural gas grid, meeting their stringent Rule 30 gas quality standards with the residual off-gas blended with natural gas for onsite power generation. This is a real win-win for the environment and generates attractive economics.”
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, statements relating to the beginning of work on the project, the delivery of the project, the amount of landfill gas to be processed by the facility, the amount of RNG produced by the facility, the direct injection into the local gas distribution network, the blending with natural gas to generate power, the achievement of SoCalGas Rule 30 quality specifications, and being the first of its kind to work in conjunction with power generation to target 100% methane recovery. 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: risks relating to the timeline for the project including delays with commencement and delivery due to unforeseen and other reasons, the facility may not meet specifications or such specifications may be altered, the contract with the customer may be amended or terminated, the injection into the local gas distribution network may not be as expected or at all possible, the blending with natural gas to generate power may not be as expected or at all possible, and the SoCalGas Rule 30 quality specifications may not be achieved. Additional risk factors can also be found in Greenlane's filing statement, which has been filed under Greenlane's SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. Greenlane 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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