Greenlane Renewables has signed a definitive joint venture with SWEN Impact Fund for Transition (SWEN), to provide biogas upgrading as a service to developers and owners of renewable natural gas (RNG) projects in Europe.
The joint venture with SWEN, a European fund dedicated to renewable gases, managed by SWEN Capital Partners, is called Greenlane Biogas Finance B.V. and will “remove the burden of ownership” on Greenlane’s clients by allowing them to replace initial capital outlays with a monthly fee.
With capital provided by SWEN, the joint venture is expected to accelerate deployment of Greenlane’s biogas upgrading systems and assist in the decarbonisation of Europe’s gas sector.
Under the collaboration, Greenlane’s market presence, expertise and experience is combined with SWEN’s investment expertise and financial backing with nearly €5 billion in assets under management. SWEN will provide capital to the joint venture for the building and owning of biogas upgrading systems and will hold a majority share.
Additionally, under the agreement, Greenlane has the option to invest in the joint venture to increase its ownership stake to increase its exposure to recurring revenue and profits.
Brad Douville, president and CEO of Greenlane, said: “We’ve created an innovative structure with SWEN that allows for scalable deployment of our biogas upgrading systems.
“This agreement gives more evidence of the maturation of the RNG industry and the global interest in the financing of these projects. With better access to specialised capital, global technical expertise and technology, we expect this initiative will help accelerate and scale-up RNG projects across Europe, and allow developers and owners of landfills and anaerobic digestion plants to join the RNG industry with confidence and more certainty of success.”
“We believe Greenlane’s expertise and SWEN’s financial resources create a powerful combination that will immediately bring to life a creative new solution to the European biogas market,” commented Olivier Aubert, managing director of SWEN.
“As European economies are slowly emerging from the COVID-19 pandemic, the European Commission has released a recovery plan for the EU that will focus on the EU’s Green Deal initiatives, which include a growing emphasis on renewable and decarbonised gases.
“We are seeing very strong growth in the number of biomethane facilities in Europe, which have increased by 51% since 2018, and see material upside potential for RNG within the European transport sector. Although individual countries within the EU are at different stages of decarbonisation, the overall momentum of RNG and the green energy transition is accelerating.”