~Focused on advanced products and financial
discipline~
VANCOUVER, BC, Feb. 27,
2025 /CNW/ - 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.
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.
SOURCE Greenlane Renewables Inc.
