“We’ve had over the last several quarters 60 percent quarter-over-quarter growth in our order book backlog, which will translate into revenue in the coming quarters.”
Worldwide, Greenlane Renewables provides biogas-upgrading systems that produce clean, low-carbon, renewable natural gas (RNG). RNG is derived from organic waste sources such as landfills, wastewater treatment plants and agricultural facilities. The nearly carbon-neutral fuel is indistinguishable from conventional natural gas and can be used in natural gas powered vehicles or injected into the natural gas grid.
When it comes to his company’s mission, Douville said, “The fundamental principle is to replace fossil natural gas in the gas distribution network with a renewable form.” Much like wind, solar and hydro power have cleaned up the electricity grid, RNG can green the gas grid.
Greenlane’s recently released Q2 2020 financial results showed a significant growth in revenues and sales. Revenue was up 45 percent over the first quarter to reach C$4.2 million in the second quarter. The company’s sales order backlog increased by 159 percent from the C$16.2 million reported on December 31, 2019, to reach C$41.9 million, representing the successful conversion of sales pipeline opportunities into sales contracts.
Although RNG is a rather “nascent market,” as Douville pointed out, in recent years it has begun to grow and that’s been reflected in Greenlane Renewables’ sales pipeline. “We’ve had over the last several quarters 60 percent quarter-over-quarter growth in our order book backlog, which will translate into revenue in the coming quarters.” This steady growth is one of the factors that led management to launch the company into the public markets in June 2019. “We did that in order to really capitalize on this global market opportunity,” he explained.
In addition to his company’s growth, Douville says he sees signs that the renewable natural gas industry is on a similar trajectory as wind and solar, although about 10 to 15 years behind the curve. “We are still in early stages globally; it’s less than 1 percent penetration of renewable natural gas into the total gas that’s distributed and consumed globally. But we see the science, we see the flows of investment capital and we see the kinds of companies that are coming into this,” Douville said.
He points out that leading natural gas utilities in Canada such as Fortis BC, Quebec’s Énergir and SoCal Gas have put in place ambitious targets of 10 to 20 percent of their distributed gas to come from renewable natural gas by 2030. Douville held up BP (NYSE:BP) as another great example, as earlier this year, BP announced their goal to reach net zero emissions by 2050.
For its part, Greenlane is taking steps to further the growth of the RNG industry through key capital and systems development partnerships across the globe. The company recently inked a joint venture deal with SWEN Impact Fund for Transition, a European fund dedicated to renewable gases, to provide biogas upgrading-as-a-Service to developers and owners of RNG projects in Europe.
Watch the full interview with Greenlane Renewables CEO Brad Doubville above.
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