Burnaby, British Columbia, Canada – June 10, 2019 Greenlane Renewables Inc. (“Greenlane” or the “Company”) (TSXV: GRN) today announced the commencement of trading on the TSX Venture Exchange under the symbol “GRN”. Greenlane has successfully completed its spinout from Pressure Technologies plc (LSE:PRES) and its concurrent financing, raising approximately $8.4 million, exceeding the minimum target of $6 million by 40%.
Headquartered in Burnaby, British Columbia, Greenlane is an established technology leader and trusted industry partner for upgrading low-energy biogas to pipeline and vehicle grade renewable natural gas (“RNG”). With over 30 years of RNG experience, the Company is perfectly positioned to participate in the rapid expansion of RNG opportunities around the world. As a competitive advantage, Greenlane is the only biogas upgrading company offering the three main technologies: Water Wash, Pressure Swing Adsorption, and Membrane Separation.
“Having now successfully completed our spin-out, listing and financing, we have created a focused and nimble organization with solid financial backing, trusted industry-standard technology and incredible depth in management and the Board,” said Brad Douville, President & CEO.“With this financing behind us, we are accelerating our growth plans and expansion into new vertical markets with our Build, Own, Operate business model. This new model allows us to partner with project developers, financers and offtakers to add recurring revenue and profits to our business in addition to our global sales of biogas upgrading equipment.”
In addition to continuing the current business of Greenlane, the Company’s primary business objectives are to:
● migrate from solely being an equipment supplier to being a project developer in key opportunities around the world to build, own and operate RNG producing facilities, allowing Greenlane to generate attractive recurring revenue and profits;
● improve gross margins in its current biogas upgrading business;
● increase size and throughput of the sales pipeline; and
● pursue consolidation opportunities in a highly fragmented industry to solidify Greenlane’s leading market position.
Market Opportunity
According to the Global Biogas Upgrading Market Outlook, the global market for renewable natural gas and its biogas upgrading subset is forecast to grow at minimum 30% Compound Annual Growth Rate over the next five years in North America and Europe. To help provide some context, reaching just 5% RNG content in the North American natural gas distribution network alone, would represent approximately US$18 billion in new biogas upgrading equipment sales and US$27 billion in annual RNG sales. The pace of new announcements by governments and gas utilities has accelerated in past months signaling the emergence of RNG as essential in driving uptake of low-carbon renewable content.
For example, on March 27, 2019, Quebec Minister of Energy and Natural Resources Jonatan Julien announced new regulations establishing a governing framework for one of the objectives of the 2030 Energy Policy Action Plan. The regulation sets the minimum quantity of RNG produced in Québec and to be injected by a natural gas distributor at 1% of the total quantity of natural gas the distributor distributes as of 2020, and progressively increases that quantity to set it as of 2025 at 5% of the total quantity of natural gas distributed. Greenlane has approximately two thirds market share of supplied units currently operating in Quebec and will be delivering two more units for the City of Quebec wastewater treatment plant next year. In addition, on April 2, 2019, SoCalGas announced a broad, inclusive and integrated plan to help achieve California's ambitious environmental goals in a paper titled California's Clean Energy Future: Imagine the Possibilities. To kick-start the plan, SoCalGas will pursue regulatory authority to implement a broad renewable natural gas procurement program with a goal of replacing five percent of its natural gas supply with RNG by 2022 and 20 percent by 2030. A Greenlane supplied plant located in Perris, California was the first to start injecting into the SoCalGas network meeting Rule 30, one of the most stringent RNG pipeline injections specifications in the world.
Strong Management Team
Brad Douville – President & CEO
Brad was appointed President of Greenlane Biogas in November, 2017. He joined Greenlane after a 25 year career in the natural gas commercial vehicle industry. He was one of the founding members of Westport Innovations Inc. (now Westport Fuel Systems Inc.), a University of British Columbia spinoff company formed in 1995 that has grown into a leading alternative fuels technology supplier of CNG and LNG systems to many of the world’s leading manufacturers of cars and commercial vehicles. He was also one of the founding members of the Cummins Westport joint venture formed in 2001, which is the preeminent supplier of natural gas engines for trucks and buses in North America. He holds a Master of Applied Science Degree in Mechanical Engineering from the University of British Columbia and an Executive Program certificate from the Stanford School of Business.
Mike Liggett – Chief Financial Officer
Mike has over 20 years of financial experience in public companies, completing over $300 million in equity and debt financing and approximately $200 million in merger and acquisition transactions. Since January 2012, Mike has provided CFO and accounting services to numerous public and private companies, currently serving as CFO of Greenlane on a part-time basis. Mike is a Chartered Professional Accountant and worked for PwC prior to taking his first CFO role with a public company.
Brent Jaklin – Senior Vice President of Sales & Service
Brent has over 20 years of experience in alternative fuels, low emission technologies and renewable natural gas projects where he has been involved in all stages from project development, technology development, design, project management, and equipment installation to commissioning and field services. Since 2009, Brent has held various positions with Greenlane Biogas, Aftercare Manager, Director of Operations, Managing Director North America, and Vice President, Sales & Technology. Prior to joining Greenlane, Brent was with QuestAir Technologies, a provider of Pressure Swing Adsorption systems for hydrogen and biogas purification. Brent holds a degree in Mechanical Engineering from Lakehead University.
Dale Goudie - Senior Director of Technology and Product Management
Dale has over 18 years of engineering experience in the design and development of natural gas engines fuel systems, and cryogenic systems. Prior to joining Greenlane, Dale held various engineering and product development roles with Westport Fuel Systems Inc. where he focused on technology/product development, creating/managing new business opportunities, and applied research. Dale obtained his BSc, Mechanical Engineering from Queen’s University and his MASc, Mechanical Engineering from the University of Victoria.
Jim Bornholdt - Senior Director of Purchasing, Project Management and QHSE
Jim has over 35 years of purchasing and logistics experience in a broad range of industries ranging from Manufacturing, Aerospace, Civil Construction, Shipbuilding, Technology, and even the Olympic Games. In Jim’s past roles he was responsible for leading the strategic sourcing, procurement services, contract management, inventory management, warehouse operations and asset recovery functions for various multi-million dollar projects globally.
Marco Mazaferro – Director of Project Development
Marco has over 15 years of experience in renewable energy projects and has been newly appointed to the role of Director of Project Development. He has been responsible for sales and business development for Canada and Latin America where he evaluated hundreds of projects and sold equipment and services. Prior to joining Greenlane in 2015, Marco developed wind and RNG projects in Brazil where he acquired deep knowledge of anaerobic digestion, biogas upgrading and ancillary technologies in addition to expanding his network of contacts and understanding local market drivers. Marco holds a degree in Business Administration from the Pontifícia Universidade Católica de São Paulo in Brazil and MSc in Sustainable Energy Development from the University of Calgary.
Sandra Keyton - Vice President, Human Resources
Sandra is a growth-oriented Human Resources executive with 30 years of global HR experience in the technology, automotive and energy sectors. Prior to joining Greenlane, Sandra held the position of Senior Vice President, Global Human Resources with Westport, where she led the global HR function in Westport’s high growth period. Sandra is a past BC Human Resources Management Association Board Member and holds her CPHR designation. Sandra is a graduate of the British Columbia Institute of Technology Human Resources Management Program.
About Greenlane Renewables
Greenlane Renewables is a leading global provider of biogas upgrading systems. Our systems produce clean, renewable natural gas from organic waste sources including landfills, wastewater treatment plants, dairy farms, and food waste, suitable for either injection into the natural gas grid or for direct use as vehicle fuel. Greenlane is the only biogas upgrading company offering the three main technologies; water wash, pressure swing adsorption, and membrane separation. With over 30 years industry experience, patented proprietary technology, and over 100 biogas upgrading units supplied into 18 countries worldwide, including the world’s first and second largest biogas upgrading facilities, Greenlane is inspired by a commitment to helping waste producers improve their environmental impact, green credentials, and bottom line. 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, CEO
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”, “expect”, “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 "may" or "will" happen. The forward-looking information contained in this press release, includes, but is not limited to, statements related to among others, those relating to general economic conditions, legislative and regulatory environments where the business of Greenlane operates including Canada, the United States, and Europe, the impact of increasing competition, and the ability to obtain regulatory approvals necessary to the operations of the business. 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, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider 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 our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, risks specifically related to the Company’s international operations, and risks relating to the market price of the Common Shares. Additional risk factors can also be found in the Company's filing statement, which has been filed under the Company's SEDAR profile at www.sedar.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.
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Greenlane Renewables
110 - 3605 Gilmore Way
Burnaby BC
V5G 4X5, Canada.
IR@greenlanerenewables.com