- Greenlane Renewables (TSX:GRN) has won a C$35.3 million contract with a leading Brazilian environmental services company
- The contract value exceeds Greenlane’s market cap of $29 million before the announcement
- Greenlane Renewables is focused on decarbonizing commercial transportation and the natural gas grid through biogas upgrading
- Greenlane Renewables stock (TSX:GRN) is up by 20.51 per cent, trading at $0.235 per share
Greenlane Renewables (TSX:GRN) has won a C$35.3 million contract with a leading Brazilian environmental services company.
The client is investing in a portfolio of landfill assets in Brazil to produce biomethane.
Greenlane will provide its Cascade PSA LF product, a landfill gas-to-biomethane solution to be deployed in one of the largest landfills in Brazil.
The Cascade PSA LF uses pressure swing adsorption (PSA), which facilitates the separation of specific gases – including methane, carbon dioxide, oxygen and nitrogen – from complex gas mixtures such as those found in landfills.
Contract fulfillment is underway.
“We are delighted to have been selected for a showcase project in Brazil,” Ian Kane, president and CEO of Greenlane Renewables, said in a statement. “Our customer ran a professional and highly competitive process, and we are honoured to win the contract. Greenlane is motivated to build upon our market leadership and presence in Brazil and is committed to continuing to build out a talented local team that will be key to the implementation and eventual servicing of the systems we deploy throughout the country.”
“The opportunity for significant expansion of biomethane in Brazil is clear to us, and we look forward to working with our customers as they expand their own capacity and develop additional projects. Furthermore, this is an example of the type of high-value contract we have been focused on winning, one with a repeatable configuration that leverages our new sector-focused product lines,” he added.
The contract value exceeds Greenlane’s market cap of $29 million before the announcement and adds to its sales order backlog of $16.3 million as of June 30.
The company has managed to increase revenue more than seven times from $9.12 million in 2019 to $71.24 million in 2022, and it expects to become cash flow positive by early 2024 by focusing on attractive markets with the potential to scale the business.
Given this promise for profitable growth, GRN shares seem undervalued at their current 12.96 per cent loss since inception.
Greenlane Renewables is focused on decarbonizing commercial transportation and the natural gas grid through biogas upgrading. Its solutions use waterwash, pressure swing adsorption and membrane separation to transform biogas generated from organic waste into high-value, carbon-negative and grid-ready renewable natural gas. To date, the company has delivered more than 140 biogas upgrading systems across 19 countries.
Greenlane Renewables stock (TSX:GRN) is up by 20.51 per cent trading at $0.235 per share as of 9:39 am ET.
Join the discussion: Find out what everybody’s saying about this Canadian renewable energy stock on the Greenlane Renewables Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.