Greenlane Renewables advances funding for US RNG
SUMMARY
First capital deployment will move California RNG project to construction finance stage.
By Dale LunanVancouver-based Greenlane Renewables said June 2 it had advanced the first tranche of development capital to a company focused on dairy cluster renewable natural gas (RNG) projects in California.
Pre-construction development capital of up to $900,000 will be advanced to progress the dairy cluster project to the construction financing stage, expected in Q4 2022, as well as to progress other project opportunities. Greenlane has an option to convert the financing to an equity interest.
In a dairy cluster project, Greenlane said, a digester and biogas upgrading equipment are installed at a host farm, which receives dairy farm manure from other nearby operations. The initial project planned by the development company is located in California and will generate up to 80,000 mnBtu/year of biogas using Greenlane’s biogas upgrading system.
Project revenue is expected to come from the sale of D3 Renewable Identification Numbers under the US Renewable Fuel Standard, credits under California’s Low Carbon Fuel Standard and the sale of the physical gas commodity. Total project capital expenditures are estimated at about $15mn, to be supplied by third parties.
