The Greenlane Digest

IN THE NEWS

Greenlane (TSX:GRN) is a pioneer in the rapidly emerging renewable natural gas (RNG) industry. 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. 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.

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 over 30 years of 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 135 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 many of the largest RNG production facilities in the world.

THE LATEST

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!

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, announced a definitive agreement to acquire full ownership of Beyond6, LLC (B6) and its network of 55 compressed natural gas (CNG) stations across the United States from Chevron’s current B6 co-owners, a subsidiary of Mercuria Energy Trading (Mercuria) and B6 CEO Andrew West. Chevron is complementing the strength of its traditional products business with new offerings that help customers support a lower carbon future, and RNG is an essential part of its portfolio of solutions. Through collaborations with Brightmark LLC and California Bioenergy LLC, Chevron is developing projects across the United States designed to convert fugitive methane emissions from dairies to a beneficial use as RNG, which can be considered carbon negative on a lifecycle basis under California’s Low Carbon Fuel Standard. With this acquisition, Chevron can market the RNG it either produces or procures through a nationwide network of CNG locations. Mercuria and Chevron will enter into a long-term supply relationship to deliver renewable natural gas to Chevron as part of the transaction.

The owners of two North American RNG producers have put them up for sale, after new US tax incentives and recent big investments in the sector incentivised them to leave at a time when profits would be maximised, according to Reuters. Amp Americas, owned by investors including Houston-based buyout firm EIV Capital and infrastructure-focused Generate Capital, is seeking a valuation of around $1bn including debt, the sources said. It was not immediately clear what valuation BerQ RNG, in which investment firm Starwood Energy Group acquired a majority stake last year, is expected to achieve. Chicago-based Amp Americas builds and operates facilities that capture and compress methane on dairy farms for injection into fuel pipelines and offers services to other developers. Most of the projects BerQ RNG has worked on in the United States and Canada since its founding in 2016 use animal, food and landfill waste as their source.

For several months there’s been a scramble on to consolidate the U.S. landfill gas collection systems, dairy- and hog-farm digesters, and other assets that produce RNG - a drop-in replacement for conventional natural gas that can qualify for federal and state financial incentives. But what really caught everyone’s attention was BP’s announcement a few weeks ago that it would acquire Archaea Energy, a Houston-based company with more than a dozen RNG projects in operation and many more under development, in a deal valued at $4.1 billion. That’s big bucks in the biogas space. In the past couple of years, the economics of collecting, treating and consuming landfill gas — and gas from anaerobic digesters — has shifted, making it less profitable to burn the partially treated gases to generate electricity and more profitable to fully treat gases from landfills and anaerobic digesters to produce RNG, and benefit from the RINs and LCRF credits, plus a commodity value equal to that of natural gas. The favorable economics of RNG production is one of the primary reasons why companies like BP, NextEra Resources and BlackRock are spending hundreds of millions or billions of dollars to acquire companies with both extensive portfolios of existing RNG production assets and long lists of projects under development.

For the latest articles on the RNG sector, click on the links below!

Nov 18-25, 2022

Chevron to acquire full ownership of Beyond6 CNG fueling network

Biogas producers Amp Americas and BerQ RNG “up for sale”

Green light - oil giants, utilities and private equity scoop up RNG assets

Greenlane Renewables
Email: IR@greenlanerenewables.com
Phone: 604.493.2004
Address: 110 - 3605 Gilmore Way, Burnaby BC V5G 4X5, Canada