May 8th 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!
The U.S. Energy Information Association (EIA) could soon provide biogas and RNG production data as it has proposed to modify its natural gas data collection to include these renewable fuels. The modification will include production of RNG or biogas to include landfill biogas facilities, agricultural anaerobic digesters, and wastewater treatment facilities, which will ultimately provide more data transparency and insight into the growing RNG market in the U.S.
In the second of a three-part series, Waste360 explores RNG pricing and market trends in the transportation fuel and utilities markets, highlighting volatility in the transportation sector due to fluctuating federal renewable volume obligations, and a new buying model within the gas utilities space. Brad Douville, CEO of Greenlane, was again quoted in the publication. “Residents, businesses and industry have sustainability targets and can purchase 100 percent renewable electricity, and gas utilities who realize their customers can switch to the electric grid are saying we need to decarbonize the natural gas network,” Douville says. “Some are doing it by creating aggressive RNG penetration targets.”
The American Gas Foundation updated its market assessment for RNG supply and emission reduction potential in late 2019, with one of the key takeaways that RNG could reduce emissions from natural gas in the residential sector by as much as 95 percent. Roughly one third of GHG emissions in the U.S. are generated from the energy consumption required to heat, cool, and light residential and commercial buildings. With approximately 75% of RNG production in the United States used for transportation fuel, the upside for RNG in heating, cooling and powering buildings and residential spaces appears to be significant.
Two of the world’s leading economists, Joseph Stiglitz and Lord Nicholas Stern, have authored a paper calling for a green recovery in response to the COVID 19 crisis that has decimated the global economy. In the report, titled “Will COVID 19 fiscal recovery packages accelerate or retard progress on climate change?”, the co-authors surveyed 231 finance chiefs from 53 countries, including all G20 nations, to gain their perspectives on fiscal recovery packages in response to the pandemic. The results of the survey point to support for a green recovery. The authors warn that a fossil-fuel based recovery, regardless of how cheap oil and gas are currently, will likely be the end game for climate action. A return to the previous hydrocarbon-based economies will lock humanity into a fossil system from which it will be nearly impossible to escape. The paper also highlights that investment in green energy technology can deliver 3x the amount of jobs than would be created by directing investment into fossil fuels.
In the third and final part of its RNG series, Waste360 looks at various investment and financing avenues for building RNG infrastructure. The article focused on three main categories of investors: private equity (energy and infrastructure funds), gas utilities (i.e. Dominion Energy and SoCalGas), and banks. All three investor types are looking for three key elements in any RNG business plan: availability of feedstock, viability of technology, and offtake agreements for downstream consumption. The biggest challenge is the downstream element and convincing offtakers to commit to long term agreements.
For the latest articles on the RNG sector, click on the links below!
May 1-8, 2020
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