July 3rd Issue of Greenlane Digest
IN THE NEWS
Greenlane (TSXV:GRN) is a pioneer in the rapidly emerging renewable natural gas (RNG) market. We work with waste producers, gas utilities, and project developers to turn low-value biogas into a valuable low-carbon clean energy resource.
Greenlane is a pure play in the RNG space, offering multiple core biogas upgrading technologies, in use and proven in the industry today. Biogas upgrading sales are forecasted by industry to grow at minimum 30% compound annual growth rate (CAGR) over the next five years in North America and Europe. Our demonstrated leadership in biogas upgrading, scope and breadth of product offerings, and 30+ years’ industry experience are fierce competitive advantages.
Today, we are a trusted partner globally and are ranked number one in installed capacity, having delivered more than 100+ biogas upgrading installations in 18 countries and counting. We’ve learned a lot along the way. First to market in 11 of the 18 countries where our systems operate, we’re also proud to have supplied the systems for the largest RNG production facilities in North America and Europe, respectively.
Through the Greenlane Digest, our goal is to provide weekly updates and the latest articles on the RNG industry. Make sure you forward our newsletter to your contacts!
Greenlane 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. “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.
Greenlane also announced the execution of a Framework Agreement with Pressure Technologies plc (“PT”), Creation Partners LLP and Brad Douville through which Greenlane’s outstanding promissory note to PT will be reduced by $1.8 million to $5.2 million upon disposition of PT’s equity position in Greenlane, which is expected to occur through a series of block trades. Upon completion of these transactions, PT will no longer be the owner of any equity securities of Greenlane, and the maturity date of the remaining balance of the promissory note will be advanced from June 3, 2023 to June 30, 2021. The Greenlane Board believes that completion of the transactions will simplify the corporate structure and provide a pathway to having the debt repaid in full by June 2021, which should provide greater flexibility to Greenlane as it expands its business.
S&P Global Platts Analytics published a special report on RNG, “The role of renewable natural gas in a carbon-constrained U.S. market”. Key highlights from the report include the growing use of RNG as a transportation fuel, California’s lead in RNG policy initiatives and increased RNG volumes in the state’s gas grid, and the key role that RNG could play in reducing methane emissions.
For the latest articles on the RNG sector, click on the links below!
June 26-July 3, 2020
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