Member press release – Greenlane Renewables Announces First Deployment of Development Capital for Renewable Natural Gas Project
Convertible loan provided to a development company focused on dairy cluster RNG projects in California
Vancouver, British Columbia, Canada – June 2, 2022 – Greenlane Renewables Inc., through its subsidiary, Greenlane Renewables Capital Inc., is pleased to announce its first deployment of development capital to a company focused on developing renewable natural gas (“RNG”) projects in California, based on the dairy cluster model.
Greenlane is deploying pre-construction development capital in the form of a convertible note loan agreement with funds to be advanced on a milestone achievement basis up to US$0.9 million. The funds will be used to progress the development company’s dairy cluster project to construction financing, expected in Q4 2022, as well as to advance their pipeline of project development opportunities. 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.
For background, in a dairy cluster project, a digester and biogas upgrading system is installed at a host farm to which manure is transported from other farms nearby. The initial project planned by the development company is located in California and is estimated to generate over 80,000 MMBtu annually using a Greenlane-supplied biogas upgrading system. Project revenue is expected to be generated from the sale of D3 Renewable Identification Numbers (D3 RINs) under the US Renewable Fuel Standard (RFS) program, credits under California’s Low Carbon Fuel Standard (LCFS) program, and physical gas commodity. The total project capital expenditure to be provided by third parties is expected to be approximately US$15 million.
“Closing our first deployment of development capital opportunity is a major milestone for Greenlane after formally launching our program last year,” said Brad Douville, President and CEO of Greenlane. “We launched this program with the aim of adding incremental value to the community of project developers around the world to help de-risk projects and to build scale in RNG origination. This is the first of what we expect to be many opportunities to provide specialized RNG project development capital to accelerate RNG projects to the ready-for- construction phase, securing Greenlane system sales, and providing on-going services for each project. Our vision has always been to leverage our decades of experience in biogas upgrading to create new opportunities for our expanding portfolio of products while acquiring minority equity interests in RNG producing projects adding long term value in recurring revenue and profits for the Company and its shareholders.”
About Greenlane Renewables
Greenlane 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 sulfide 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.
For more information please contact:
Incite Capital Markets
Eric Negraeff / Darren Seed Ph: 604.493.2004
Brad Douville, President & CEO, Greenlane Renewables Email: IR@greenlanerenewables.com
