Greenlane Renewables reports Q4 results

British Columbia-based Greenlane Renewables Inc. released fourth quarter 2019 financial results on April 28. In its Q4 report, the company discussed its operations and potential growth in the renewable natural gas (RNG) industry.

Documents published by Greenlane explain that the company acquired PT Biogas Holdings Ltd. and its subsidiaries in June 2019 and changed its name to Greenlane Renewables. The company said it signed $14.4 million in new contracts in 2019 following the acquisition, with an additional $8.5 million signed so far this year. This includes a $3.4 million contract to provide Greenlane’s water-wash technology solution to a municipal wastewater treatment facility in British Columbia to produce RNG, a $2.7 million contract to provide a pressure swing adsorption solution for a wastewater treatment system in Oregon to produce RNG; an $8.3 million biogas upgrading contract with a customer in California, and a $7 million contract with a company in Pennsylvania for three biogas upgrading systems.  

In late 2019, Greenlane became a founding member of the Integrated Biogas Alliance, and in early 2020 signed an agreement in principal with SWEN Capital Partners to provide an innovative finance solution for customers in Europe using a build, own and operate model.

“RNG continues to build its reputation as a viable and attractive alternative to traditional natural gas,” said Brad Douville, president and CEO of Greenlane, in statement. “A recent example of this is the announcement that Southern California Gas Co. (SoCalGas), the largest gas distribution utility in the U.S., and other stakeholders have filed a proposed plan to offer RNG to customers that, after approval by the California Public Utilities Commission, would allow millions of California customers the option to purchase a portion or all of their natural gas from renewable sources. A 2018 study showed that replacing less than 20 percent of SoCalGas’ traditional natural gas supply with renewable natural gas by 2030 can achieve the same greenhouse gas reductions as converting all homes and commercial buildings to electric-only energy. Greenlane supplied the biogas upgrading system for the first commercial scale project to produce RNG within California to be introduced into SoCalGas' pipeline system.”

According to the quarterly report, Greenlane’s management believes the RNG industry is at an inflection point. “Internal estimates based on various market statistics and industry publications suggest that reaching 5 percent RNG content in the North American gas distribution network alone could represent approximately US$18 billion in biogas upgrading equipment sales,” the company said.

Greenlane reported revenue of $3.3 million for the fourth quarter of 2019, along with a gross profit of $1.6 million, a net loss of $1 million and an adjusted EBITDA loss of $500,000. For the full year, the company generated $9.1 million in revenue, reported gross profit of $3.3 million, and an adjusted EBITDA loss of $1.3 million.