Greenlane Renewables to form JV to help deploy biogas upgrading systems across Europe
The JV will provide an innovative finance solution for customers in Europe using a build, own, operate model. The two companies intend to use the JB to help remove the burden of ownership on Greenlane’s customers by allowing them to replace initial capital outlays with a monthly fee.
Commenting on the formation of the new JV, Brad Douville, president and CEO of Greenlane Renewables, said: “We believe the joint venture will unlock new opportunities by creating a unique value proposition that attracts those customers requiring not only financing to deploy biogas upgrading systems but also long term guarantees.
“This innovative solution allows our systems to be owned and financed by the joint venture in which we will participate as a minority equity partner. Greenlane will be responsible for the construction, operation, and maintenance of the biogas upgrading units and our equity partner, SWEN, will be responsible for the financing. Customers benefit from reduced capital expenditures in projects, built-in operation and maintenance while retaining their autonomy to sell the resulting renewable natural gas back to the natural gas grid.”
Olivier Aubert, managing director of the SWEN Impact Fund for Transition, added: “SWEN brings extensive experience and knowledge in sustainable investing. The combination of Greenlane’s expertise and SWEN’s financial resources provides for credibility to the biomethane or RNG sector, while enabling Greenlane to position itself as a leading integrated player in the market.”
“We have the right products in the right market at the right time,” continued Douville. “For example with the recent announcement by the German Government to phase out coal, the Green Party in Germany is calling for a ‘gas turnaround’ where fossil natural gas must be replaced by ‘green gases’ – or RNG – as quickly as possible. Changing the global natural gas infrastructure from fossil-based sources to a renewable form makes both economic and environmental sense. Greenlane Renewables is set to benefit from this push to RNG with its strong presence in Germany and its showcase installation in Gustrow.”
Potential customers include greenfield project developers and existing anaerobic digestion plant owners operating co-generation units with an interest to switch to biomethane injection, while keeping initial costs down.
The creation of the JV is subject to the settling of a final agreement between the two companies, which is expected to be completed by the end of the second quarter of 2020.