Greenlane Renewables Inc. · TSX:GRN
Greenlane Renewables — Investor Presentation (December 2022)
26 slides from Greenlane Renewables's investor presentation, December 2022
Slide 1: Investor Presentation
INVESTOR PRESENTATION TSX: GRN December 2022 FSE: 52G OTC: GRNWF
Slide 2: Important Disclosures
Important Disclosures Available Information Forward-Looking Statements (continued) Specified Financial Measures Greenlane Renewables Inc. (the “Company”) is a public company which Forward-looking statements contained this Presentation include, without Management evaluates the Company’s performance u
Slide 3: We are Changing the Nature of Natural Gas
We are Changing the Nature of Natural Gas World is Decarbonizing What We Do Renewable Natural Gas (RNG) is to the We are a market leading global technology natural gas grid as wind and solar are to provider of biogas upgrading systems the electricity grid Our systems produce clean, low-carbon RNG fr
Slide 4: Key Investor Considerations
Key Investor Considerations Rapidly growing pure play in the RNG space Expanding into recurring revenues and profits through • Record revenue of $55.4 million in FY21, an increase of deployment-of-development-capital model 146% over FY20 • Record quarterly revenue of $19.9 million in Q3 2022 Strong
Slide 5: Industry & Market Drivers
Utility / Pipeline Transportation Industry & Market Drivers Decarbonizing Natural Gas for Two Major Markets 5
Slide 6: Renewable Natural Gas Ecosystem
Renewable Natural Gas Ecosystem RNG Advantages What is Biogas? • Drop-in substitute for natural gas 50-65% Produced from 35-50% • 100% renewable - no new carbon CH4 decomposing CO2 organic material • Upcycles low-grade organic waste into high-value, energy source Trace impurities (H2S, VOCs, etc.) C
Slide 7: Significant Global Growth Through 2050
Significant Global Growth Through 2050 2022 IEA Global Biomethane Volumes as % of 2021 Total Natural Gas Demand 7% % 2021 Total Global Natural Gas Demand 6% 5% IEA 2022 Announced Pledges (APS) Opportunity by 2050 IEA 2022 Net Zero (NZO) 4% $90 Bn - APS 3% $120 Bn - NZO 2% 1% 0% 2021 2030 2050 Source
Slide 8: Growth Potential – Expand Beyond System Sales
Growth Potential – Expand Beyond System Sales Deployment of development capital has started Objective is to increase recurring revenues and profits by adding exposure to lucrative RNG off-take contracts and the associated environmental attributes/carbon credits Greenlane intends to deploy specialize
Slide 9: Global Directives Driving RNG Expansion
Global Directives Driving RNG Expansion The world will decarbonize – not IF but WHEN GOVERNMENTS TRANSPORTATION Global Methane Pledge announced at COP26 to cut Renewable Fuels Standards (RFS) methane emissions 30% by 2030, driven by US and EU, • Mandates renewable fuel volumes in U.S. transportation
Slide 10: Notable Industry Developments in Transportation
Notable Industry Developments in Transportation Orders more than 1,000 natural gas engines for U.S. truck fleet and over 1,000 CNG-powered delivery truck commitment in Europe; signed agreement with Clean Energy Fuels to provide RNG in 15 different states Landmark biomethane offtake $200+M JV for ana
Slide 11: Industry Consolidation is Accelerating
Industry Consolidation is Accelerating Shell to acquire Danish-based Nature bp to acquire Archaea for Energy for close to US$2B US$4.1B in largest RNG acquisition to date Macquarie’s Green Investment Group acquires German biogas platform BayWa r.e. Bioenergy NextEra Energy acquires a large portfolio
Slide 12: Technology & Company Overview
Technology & Company Overview 12
Slide 13: Greenlane Biogas Upgrading Technologies
Greenlane Biogas Upgrading Technologies Only company to offer three main biogas upgrading technologies (Price per unit ranges from ~$2–$12M, depending on size and scope of supply) Water Pressure Swing Membrane Wash Adsorption (PSA) Separation Best for larger projects demanding Best for complex feeds
Slide 14: Right Solution for Every Project
Right Solution for Every Project Digester Gas Landfill Gas Tough Pipeline Spec (Low N2 & O2) (High N 2 & O2) (High Heating Value, Low O2) Water Water Water HIGH Wash Wash Wash FLOW PSA PSA LOW FLOW Membrane PSA Dual PSA Dual PSA Separation GREENLANE RENEWABLES TSX: GRN | FSE: 52G | OTC: GRNWF 14
Slide 15: Compelling In-House Desulphurization Products
Compelling In-House Desulphurization Products Airdep, our wholly owned subsidiary, based in Vicenza, Italy, acquired February 2022, brings in-house effective and proven technology to remove hydrogen sulfide (H2S) from biogas using a proprietary liquid reagent media method with over 100 units sold an
Slide 16: The Global Leader in Biogas Upgrading
The Global Leader in Biogas Upgrading World’s largest system (2009) 1st system in the UK (2010) 1st system in Iceland (1999) 1st system in Denmark (2011) 1st system in France (1993) 1st system in Sweden (1995) 1st system in Spain (2009) 1st system in Finland (2011) World’s largest system (2014) 1st
Slide 17: Project Examples: Trusted for the Biggest Jobs
Project Examples Trusted for the Biggest Jobs Greenlane supplied systems for many of the largest RNG production facilities in North America and Europe Gustrow, Germany Montreal, Canada 10,000 Nm³/hr 16,000 Nm³/hr 6,000 scfm 10,000 scfm GREENLANE RENEWABLES TSX: GRN | FSE: 52G | OTC: GRNWF 17
Slide 18: Project Examples: Trusted for the Toughest Jobs
Project Examples Trusted for the Toughest Jobs *Rule 30 is the stringent RNG specification for injection into . the SoCalGas pipeline network Greenlane supplied systems to the Perris California site, the first commercial scale project to Perris, CA, USA Lidkoping, Sweden inject RNG directly into Rul
Slide 19: Competitive Advantages
Competitive Advantages Global Expertise / Strong IP Technology Advantages – 14 Patents and 28 Device Titles Widest Range of Applications • landfills, WWTPs, digester gas facilities Field Service, 24/7 Remote Monitoring • CO2 recovery, liquefied biomethane Fully Outsourced Manufacturing, Asset-light
Slide 20: Active Competitors Selling Globally
Active Competitors Selling Globally GREENLANE RENEWABLES TSX: GRN | FSE: 52G | OTC: GRNWF 20
Slide 21: Financials / Management
Financials / Management 21
Slide 22: Financials
Financials Fiscal year ended December 31 2021 2020 Third quarter ended September 30 2022 Revenue $55.4M $22.5M Revenue $19.9M Gross margin(2) 26% 29% Gross margin(2) 25% Adjusted EBITDA $1.1M ($1.7M) Adjusted EBITDA(3) $0.4M Sales Order Backlog(4) $36.7M Sales Pipeline(5) $900M Revenue Growth Cash b
Slide 23: Capital Structure
Capital Structure As at September 30, 2022 Common Shares Issued and Outstanding 151,208,368 Employee Options 7,287,339 Restricted Share Units 2,049,954 Fully Diluted Shares 160,545,661 Insider Ownership 10% Market Capitalization (as at December 12, 2022) $75.6 million Debt $0 million Cash $21.3 mill
Slide 24: Senior Management: Strong Track Record
Senior Management: Strong Track Record Brad Douville Monty Balderston Alex Chassels CEO & Director CFO COO Joined as President in 2017 after a Joined as CFO in 2022 with 25 years Joined as COO in 2022 with over 20 25-year career in the natural gas of professional experience including years of global
Slide 25: Key Highlights
Key Highlights Rapidly growing pure play in the RNG Space Expanding into recurring revenues and profits with deployment-of-development-capital model 146% annual revenue growth Only company that offers all three main biogas upgrading technologies Largest global supplied capacity in industry Substanti
Slide 26: Thank you
Thank you For more information: Incite Capital Markets Eric Negraeff / Darren Seed 604.493.2004 [email protected] 26
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