Greenlane Renewables Inc. announced that its wholly-owned subsidiary, Greenlane Biogas North America Ltd., has signed a $10 million (US$7.7 million) contract for a new renewable natural gas (“RNG”) project in the United States owned by an international energy company. This project will utilize Greenlane’s membrane separation biogas upgrading system. The project owner and location have been withheld at this time. Order fulfilment by Greenlane will start immediately.
“Greenlane continues to gain traction with global energy companies as they seek to diversify their energy portfolios and introduce low carbon intensity fuel options to their customer base,” said Brad Douville, President & CEO of Greenlane. “To be selected for this exciting new project showcases again our unique ability to provide the best solution from our portfolio of multiple upgrading technologies. This is becoming increasingly important as our customers originate, develop and finance a wide range of projects within their respective portfolios each with unique requirements. This ability, combined with our decades of experience and proven track record, makes Greenlane the ideal partner to help all of our customers scale up rapidly.”
Greenlane’s sales pipeline, as announced with its Q3 financial results for the period ending September 30, 2020, and which feeds into the sales order backlog, was in excess of $690 million. The sales pipeline continues to expand and is reflective of the growing global focus on the low-carbon energy transition. The sales order backlog, which refers to unrecognized revenue from contracted projects, was $43.8 million at September 30, 2020, which represents an annual increase of over 350% compared to September 30, 2019.
While uncertainty remains with respect to the COVID-19 pandemic and its ongoing impact on global economies, the Company believes that the energy transition is here to stay. Furthermore, the Company believes that RNG will play a meaningful and growing part in countries’ efforts to stimulate their economies while tackling climate change and moving toward a decarbonized future, in which Greenlane will play an important role.
International energy companies are rapidly moving to adopt decarbonization strategies and increase renewable and low carbon energy sources within their respective portfolios, including RNG. Earlier in 2020, several leading international energy companies announced their respective net zero carbon ambitions by 2050, and subsequently announced specific actions to advance their respective plans such as RNG offtake and project financing.
