RE:Excellent News For GRN ..question regarding the deployment of development capital from the earnings call transcript -May 22
Ahmad Shaath
That's great color. Maybe if I can follow up on the last point, Brad. Are you able to quantify or give us any color on the number of projects you're working on, on deploying development capital? I mean, how is that looking? I'm not sure if that's in the disclosure [indiscernible], but that would be a great update for us.
Brad Douville
Yes, absolutely. That's one where we're continuing to work. We've signed some term sheets. When we finalize the tentative agreements for our first contract, we will announce that. But it's coming along.
We've been at it for the better part of the last year. We've put a lot of work into it in terms of getting several conversations going, vetting projects, getting developers and testing the market with this. We've had good reaction so far, that we do think that our program to provide development capital, there are certain developers to accelerate their project who are ready for construction phase. That certainly adds value. Not all of our customers will need that or want it. But those that do, it's an attractive product for them, financial product. And for us, it gets our equipment specified early and into the project. So what I can say is that's building. I think we've had a reaction from the market that it's positive and the kind -- we didn't refine this, and you've been following us for a long time, Ahmad. And so we have gone from, more generally, a build-and-operate, but what does that mean in the Greenlane context? And we refined that over the last year or about a year ago when we were clear in the direction of deployment of development capital, that's where we think we can add the most value. Because the #1 thing that the market generally needs is origination.
The demand side for all intents and purposes is unlimited demand for RNG. So we really have to focus on the origination side, and that's where this program is targeted. And development is an inherently local activity that if we can help those local folks that may not have the wherewithal that some others do and that gets more RNG to market and we participate in that, that's all good. And that's the fundamental basis for that program.
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