~Greenlane continues to invest in the growing RNG / Biomethane market
Vancouver, British Columbia, Canada – August 22, 2022 Greenlane Renewables Inc. (“Greenlane”) (TSX: GRN / FSE: 52G) through its subsidiary, Greenlane Renewables Capital Inc., is pleased to announce its second deployment of development capital to a company focused on developing landfill gas-to-renewable natural gas (“RNG”) projects.
Greenlane is deploying pre-construction development capital in the form of a convertible note agreement with funds to be advanced on a milestone achievement basis of approximately $0.7 million (US$0.5 million). The funds will be used to progress the development company’s landfill gas-to-RNG project to construction financing, expected in late 2022. Under the terms of the loan agreement, Greenlane has the option to convert the note into an equity interest in the development company in addition to realizing a return of capital.
The initial project planned by the development company is located in the midwestern USA and is estimated to generate over 250,000 MMBtu annually using a Greenlane supplied biogas upgrading system. Project revenue is expected to be generated from the sale of physical gas and D3 Renewable Identification Numbers (D3 RINs) under the US Renewable Fuel Standard (RFS) program or, alternatively, one or more long-term offtake agreements with natural gas utilities. The total project capital expenditure to be provided by third parties is expected to be approximately
$23.0 million (US$18.0 million).
“We are rapidly moving forward with our development capital program,” said Brad Douville, President and CEO of Greenlane. “This transaction marks our second deployment and supports an innovative developer targeting the landfill gas-to-RNG space in the United States. We continue to see abundant opportunities in different countries around the world to add incremental value to project developers by providing development capital to accelerate RNG projects to the ready for construction phase. Our aim is to help de-risk projects and build scale in RNG origination, while securing Greenlane system sales and services and new long-term recurring revenue for Greenlane as the industry continues to expand.”
Renewables is a pioneer in the rapidly growing renewable natural gas (“RNG”) industry. As a leading global
provider of biogas upgrading systems, we are helping to clean up two of the
largest and most difficult-to-decarbonize sectors of the global energy system:
the natural gas grid and the commercial transportation sector. Our systems
produce clean, low- carbon and carbon-negative RNG from organic waste sources
such as landfills, wastewater treatment plants, dairy farms, and food waste streams. To the company’s
knowledge, Greenlane is the only biogas upgrading company
offering the three main technologies: waterwash, pressure
swing adsorption, and membrane separation. Greenlane’s business has been built
on over 30 years of industry
experience, patented and proprietary technology, over 100 hydrogen
treatment systems sold, and over 135 biogas upgrading systems sold into 19 countries, including some of the largest RNG production facilities in the world. For further information, please visit www.greenlanerenewables.com.