November 12th Issue of Greenlane Digest
IN THE NEWS
Greenlane (TSX: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 and carbon-negative clean energy resource.
Greenlane issued the following news release this week:
Greenlane announced financial results for the third quarter ended September 30, 2021, posting record revenue of $13.4 million, an increase of 107% over the $6.5 million reported in the third quarter of 2020. Gross margin for the quarter was $3.4 million, or 25% of revenue, with net income of $0.1 million and adjusted EBITDA of $0.1 million. “Greenlane’s growth has continued as the company delivered a fifth consecutive record revenue quarter exceeding 100% year-over-year growth and a record sales order backlog,” said Brad Douville, President and CEO of Greenlane. “Additionally, the company delivered a fourth consecutive quarter of positive adjusted EBITDA, which was against a backdrop of tightening labour markets and supply chain disruptions globally.”
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 a 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 sold more than 125 biogas upgrading systems into 19 countries and counting. We’ve learned a lot along the way. First to market in 12 of the 19 countries where our systems have been sold, 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 European Biogas Association (EBA) is launching the first comprehensive categorization of European biogas and gasification technologies, aimed at giving visibility to high-quality European products and services from the biogas sector. The sector is well developed in Europe and is ready to scale-up. According to data from the EBA, the combined production of biogas and its upgraded form, biomethane, could cover 4.6% of EU gas demand today. By 2050, about 30-40 % of EU gas needs can be met by biogas/biomethane.
A key theme emerging from COP26, as illustrated by the formal launch of the Global Methane Pledge in Glasgow, is cutting down emissions of methane – a greenhouse gas 86 times more potent than CO2 in the first 20 years after release into the atmosphere. Over 100 countries have now signed up to the pledge, which commits them to reducing their emissions by 30% from 2020 levels by 2030. This will serve to reduce global temperatures by at least 0.2C by 2050, say the Inter-Governmental Panel on Climate Change. Around 25% of methane emitted into the atmosphere annually comes from the 105bn tonnes of organic wastes produced through human activity every year. The World Biogas Association (WBA) is calling for an overhaul of waste management systems to ensure these organic wastes are treated through anaerobic digestion (AD), which turns organic food, farm, and sewage waste into biogas and biofertilizer that can be sold or used on-site to generate energy, can help reduce methane and create a sustainable source of revenue and job creation. Local to industrial scale AD technologies are well understood and have operated around the world for nearly half a century. These technologies are readily available, low-cost, and well positioned to achieve global scale to deliver immediate and cost-effective action on climate change.
NW Natural, the natural gas utility operating in the Pacific Northwest, is expanding its role in the growing RNG market with the formation of a subsidiary focused on supplying renewable fuels to utilities and commercial, industrial, and transportation sector customers across the U.S. NW Natural forecast that low-cost RNG supply will outstrip demand in the near-term, as voluntary and compliance-driven targets among states and utilities stoke consumption. The utility operator announced the new nonregulated business line, NW Natural Renewables, would provide fuels processed from existing waste streams and renewable energy sources. The company will primarily seek to acquire or develop RNG projects once key permits and feedstock and lease agreements are in place.
Clean Energy Fuels and supermajor bp announced that its RNG joint venture will build on previously announced plans to finance and develop new projects at dairy farms, starting in the U.S. Midwest. Located in South Dakota and Iowa, the dairy farms, with more than 30,000 cows, have the estimated potential to convert the methane produced from waste into more than seven million gallons of RNG annually. Clean Energy has the largest network of RNG stations in the U.S. and bp’s world-class trading organization transports RNG to California markets and monetizes the environmental credits associated with dispensing the RNG. The first RNG production facility is expected to be operational in 2022.
The CMA CGM Group, a global shipping group, has partnered with French energy utility ENGIE to decarbonise the shipping industry. Together, the companies will work to advance the energy transition by championing the industrial-scale production and distribution of synthetic methane and bio-LNG. Biomethane can reduce GHG emissions by 67% compared to very low sulphur fuel oil on a well-to-wake basis (the entire value chain). An initial project to produce bio-LNG (liquefied biomethane) for shipping has already been launched by both groups at the Port of Marseille, in partnership with Total Energies and Metropole Aix-Marseille-Provence. The CMA CGM Group currently accounts for 20 ‘e-methane ready’ vessels equipped with dual-fuel engines and running on LNG and will have 44 ‘e-methane’ vessels by the end of 2024.
For the latest articles on the RNG sector, click on the links below!
Nov 5 - 12, 2021
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