~Convertible loan provided to a
development company focused on dairy cluster RNG projects in
California~
VANCOUVER, BC, June 2, 2022
/CNW/ - Greenlane Renewables Inc. ("Greenlane") (TSX: GRN)
(FSE: 52G) through its subsidiary, Greenlane Renewables Capital
Inc., is pleased to announce its first deployment of development
capital to a company focused on developing renewable natural gas
("RNG") projects in California,
based on the dairy cluster model.
Greenlane is deploying pre-construction development capital in
the form of a convertible note loan agreement with funds to be
advanced on a milestone achievement basis up to US$0.9 million. The funds will be used to
progress the development company's dairy cluster project to
construction financing, expected in Q4 2022, as well as to
advance their pipeline of project development opportunities.
Under the terms of the loan agreement, Greenlane has the option to
convert the note into an equity interest in the development company
in addition to realizing a return of capital.
For background, in a dairy cluster project, a digester and
biogas upgrading system is installed at a host farm to which manure
is transported from other farms nearby. The initial project planned
by the development company is located in California and is estimated to generate over
80,000 MMBtu annually using a Greenlane-supplied biogas upgrading
system. Project revenue is expected to be generated from the
sale of D3 Renewable Identification Numbers (D3 RINs) under the US
Renewable Fuel Standard (RFS) program, credits under California's Low Carbon Fuel Standard (LCFS)
program, and physical gas commodity. The total project capital
expenditure to be provided by third parties is expected to be
approximately US$15 million.
"Closing our first deployment of development capital opportunity
is a major milestone for Greenlane after formally launching our
program last year," said Brad
Douville, President and CEO of Greenlane. "We launched this
program with the aim of adding incremental value to the community
of project developers around the world to help de-risk projects and
to build scale in RNG origination. This is the first of what we
expect to be many opportunities to provide specialized RNG project
development capital to accelerate RNG projects to the
ready-for-construction phase, securing Greenlane system sales, and
providing on-going services for each project. Our vision has always
been to leverage our decades of experience in biogas upgrading to
create new opportunities for our expanding portfolio of products
while acquiring minority equity interests in RNG producing projects
adding long term value in recurring revenue and profits for the
Company and its shareholders."
About Greenlane
Renewables
Greenlane Renewables is a pioneer in the rapidly growing
renewable natural gas ("RNG") industry. 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. Our systems produce clean, low-carbon and
carbon-negative RNG from organic waste sources such as landfills,
wastewater treatment plants, dairy farms, and food waste streams.
To the company's knowledge, Greenlane is the only biogas
upgrading company offering the three main technologies: waterwash,
pressure swing adsorption, and membrane separation. Greenlane's
business has been built on over 30 years of industry experience,
patented and proprietary technology, over 100 hydrogen sulfide
treatment systems sold, and over 135 biogas upgrading systems sold
into 19 countries, including some of the largest RNG production
facilities in the world. 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 the convertible note loan agreement to a development
company with funds to be advanced on a milestone basis up to
US$0.9 million; that the funds will
primarily be used to progress the development company's dairy
cluster project to construction financing, expected in Q4, 2022, as
well as to advance its development opportunities; that this
project is estimated to generate over 80,000 MMBtu annually using a
Greenlane-supplied biogas upgrading system; that project revenue is
expected to be generated from the sale of D3 RINs, LCFS credits and
physical gas commodity; that total construction financing for the
project is expected to be approximately US$15 million; that there will be many
opportunities to provide development capital to accelerate RNG
projects; that Greenlane will be able to create new opportunities
leveraging its experience in biogas upgrading; that Greenlane's
product portfolio is expanding; that Greenlane will be acquiring
minority equity interests in RNG producing projects. 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, 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. Such
factors include, without limitation, risks relating to the ability
of the development company to achieve milestones and secure
construction financing for its initial project; risks relating to
the ability to sell D3 RINs and LCFS credits and physical gas
commodity, and the market prices thereof; risks relating to the
estimated RNG generation of the initial project; the availability
of other opportunities for Greenlane to deploy specialized
development capital and acquire minority equity interests in RNG
producing projects; and risks identified in the Company's annual
information form and in other documents filed with Canadian
securities regulatory authorities on the Company's SEDAR profile at
www.sedar.com. Readers are cautioned not to put undue reliance on
forward-looking information. Actual results may differ
materially from those anticipated. 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.
