News Releases

~Focused on advanced products and financial discipline~

Vancouver, British Columbia, Canada – February 27, 2025 Greenlane Renewables Inc. (“Greenlane” or the “Company”) (TSX: GRN / OTC: GRNWF/ FSE: 52G) today released a letter to shareholders from CEO, Brad Douville, providing an update on the Company’s 2025 strategy.

Dear Fellow Shareholders,

As 2025 unfolds, in a time of significant political uncertainty, we remain resolute and committed to our mission of accelerating the energy transition. Our 2025 strategy involves advanced products, superior project execution, a strong parts and service platform, and royalty revenue all while being underpinned by financial discipline with relentless focus on improving adjusted EBITDA results and maintaining healthy cash reserves. Greenlane is transforming energy production and creating new, sustainable revenue streams for its customers, all while dramatically reducing carbon emissions.

The global renewable natural gas (RNG) industry in which Greenlane participates is dynamic and fast growing. According to the International Energy Agency’s Q3 2024 Gas Market Report, global RNG production doubled from 2018 to 2022 and is forecast to double again from 2023 to 2027 reaching over 1.5 bcf/d (over 16 bcm) by 2027 led by Europe and North America. This corresponds to a 19% compound annual growth rate. In Brazil, a market still early in its maturation and where biomethane production is expected to quadruple from 2023 to 2027, Greenlane is the market leader.

As a product company and technology provider in our industry, we must deliver on the following four key success factors:

1) Price and Performance: Delivering attractive return-on-investment results to customers with the best combination of product price and performance while also innovating quickly to solve the most challenging industry problems.

2) Manufacturing: Controlling manufacturing to manage costs and localizing production in core markets to enable project developer customers to secure tax incentives, avoid tariffs and to secure project financing at attractive rates.

3) Intellectual Property (IP): Growing a portfolio of strong IP to sustainably maintain competitive advantage.

4) Partnerships: Collaborating with industry partners, who bring expertise and focus on adjacent and essential elements of the RNG value chain, to deliver complete solutions and extend market reach.

Over the past few years, we have transitioned through a challenging period of exponential growth and heavy investment in the business to establish systems, processes and standard products, but we have now settled into a sustainable and scalable business model. 

Our 2025 strategy builds on our past investments and achievements with a solid foundation to position Greenlane for long-term operational excellence and financial strength. Our 2025 strategic initiatives are:

1) Continue sales growth in the most profitable segments of our business including parts and service, biogas desulfurization products and technology licensing.

2) Improve profitability of our core upgrading systems segment by executing our projects on-time and on-budget delighting customers and selling  standard products  versus  one-off engineered solutions.

3) Develop our compelling next generation landfill gas upgrading product line, capture additional IP, solidify industry partners, and plan manufacturing in the US and Brazil.

Solving the Industry’s Most Complex Challenges

A key element of our 2025 strategy is advanced products aimed at solving some of the industry’s most complex challenges. Greenlane’s expertise and proven track record is unmatched. We are the only technology provider that has deployed the three main upgrading technologies: waterwash, pressure swing adsorption, and membrane separation, plus proprietary biogas desulfurization technology with over 35 years’ experience in the industry. Moreover, Greenlane has supplied more than 355 systems into 28 countries. This puts us in a unique position to deeply understand the technical challenges facing RNG project developers and owners.

The most challenging problems that need solving are best explained with reference to the fundamental differences between biogas generated from anaerobic digesters (“AD biogas”) and landfill gas generated from municipal solid waste.

AD biogas is commonly composed of 50%-65% methane (CH4), 35%-50% carbon dioxide (CO2), 2,000 ppm - 5,000 ppm hydrogen sulfide (H2S), and possibly other trace impurities. Industry benchmark methane recovery in the upgrading process is 99.5%. While removal of CO2 can be done reliably and at a competitive cost, the real challenge is cost effective and reliable removal of the high H2S levels found in AD biogas. Greenlane has solved this difficult industry problem with our benchmark Cascade H2S product line, building on our 13 years of success in Europe. We believe this is a breakthrough product that can drive consensus in the industry on H2S removal from AD biogas to also become the defacto standard in the North American and South American markets.

Landfill gas is different from AD biogas in that it can commonly contain up to 3% or more oxygen (O2) and up to 18% or more nitrogen (N2). Separating O2 and N2 from CH4 is not easy. Industry benchmark methane recovery is between 80% and 95%. Today’s state-of-the-art landfill gas upgrading technology is too costly for the low performance it delivers. The problem is achieving low cost and high performance when O2 and N2 need to be removed. Greenlane is focused on solving this problem with our next generation Cascade LF product line. As announced in December 2024, the Company filed two new patent applications for landfill gas upgrading technology directly related to this industry challenge and that we intend to bring to market in 2025 a new compelling product line that incorporates the content of these patent applications. We are targeting our product launch in October of this year. 

Building our Business

Market forecasts are of course subject to change and could be impacted, positively or negatively, by changes in government, including the new administration in the US. Looking back, RNG has survived and thrived during multiple political cycles, has enjoyed bipartisan support in the US and has seen growth diversified across all of our core markets of Europe, North America and Brazil. Looking forward, the world needs more energy and RNG has proven its unique utility as a high-value low-carbon substitute for diesel fuel in commercial vehicles and for other fuels in industrial applications and heating of homes and buildings.

Our 2025 strategy is about innovation, delivering results, and driving financial performance. With next-generation products, superior project execution, a strong parts and service platform, royalty revenue, and disciplined financial management, we are creating long-term value for our shareholders while solving the industry’s toughest challenges. We believe we are on track with a sustainable business model with a pipeline of advanced products to serve the highest demand areas of the fastest growing markets. With a solid cash balance, no debt, and a relentless focus on improving adjusted EBITDA, Greenlane is committed to driving financial success.

I look forward to keeping you up to date with our progress.

Sincerely,

Brad Douville
CEO

Click HERE to see Mr. Douville present the Company’s investor presentation.

About Greenlane Renewables

Greenlane is driving change: accelerating the energy transition. We are cleaning up two of the largest and most difficult to decarbonize sectors of the global energy system: the natural gas grid and commercial transportation. As a pioneer and leading specialist in biogas desulfurization and upgrading, we have been actively contributing to the decarbonization of our planet for over 35 years with more than 355 systems supplied into 28 countries. We transform biogas generated from organic waste into high-value grid-ready renewable natural gas (“RNG”) from a wide range of sources such as landfills, sugar mills, dairy farms, wastewater, and food waste. Greenlane is transforming energy production and creating new, sustainable revenue streams for its customers - all while dramatically reducing carbon emissions. Partner with us, let’s accelerate the energy transition together. For further information, please visit www.greenlanerenewables.com.

For more information please contact:
Incite Capital Markets
Darren Seed / Clayton Paradis
Ph: 604.493.2004
Brad Douville
CEO, Greenlane Renewables
Email: IR@greenlanerenewables.com

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”, “is expected”, “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 “can”, "may" or "will" happen. In particular, this news release contains forward looking information relating to Greenlane’s 2025 strategy; the anticipated growth of the renewable natural gas (RNG) industry in Europe, North America and Brazil and Greenlane’s positions within it; the Company’s plan to solve the industry’s challenge of biogas generated from landfill gas with the introduction of Greenlane’s next-generation Cascade LF product line; the timing of the planned product launch in October 2025; that RNG will continue to be a key high-value, low-carbon alternative to diesel and other fuels in transportation, industry and home heating as energy demand grows; the potential impacts from the new U.S. administration; Greenlane’s financial outlook, including its focus on improving adjusted EBITDA and maintaining a strong cash position with no debt and the expectation of delivering long-term value to shareholders. 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 and expected future developments, the Company’s ability to execute its 2025 business strategy as well as other considerations that are believed to be appropriate in the circumstances. While management considers 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 the Company’s control, could cause actual results to differ materially from the forward-looking information in this press release. Additional risk factors can also be found in the Company's Management Discussion and Analysis, its Annual Information Form and in its base shelf prospectus dated January 4, 2024, all of which have been filed under the Company's SEDAR+ profile at www.sedarplus.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company 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.