yeah Brazil is a really fantastic market for for biomethane like other markets around the world uh it is um it's emerging in terms of the volumes of RNG or biomethane referred to in other parts of the world uh is growing from a from a relatively small base in Brazil the unique thing about Brazil is that they have some very large biomass sources [Music] hello and welcome to CEO insights I'm Marilyn De Guzman with investing News Network today I'm speaking with Brad dubil CEO of Greenway Renewables about


his company's Innovative biogas upgrading technology hello Brad hello are you I'm good thanks thanks for joining us today I guess for the first question if you could provide us an overview of Green Lane Renewables and your biogas upgrading technology yeah absolutely so Greenland is a world leading provider of the biogas upgrading Solutions and what that is is we take biogas we separate site from the biomethane and create a high Purity result of that is fully mixable with natural gas in the pipeline or in


commercial vehicles so for those in the investor communities that are familiar with renewable natural gas could you provide a brief explanation of why it's important for the global global efforts towards emissions reductions yeah it's it's one of the key Tools in combating climate change the easiest way to think about it is renewable natural gas is to the Natural Gas Network as wind and solar are to the electricity Network and um we're really looking at two large and particularly difficult to decarbonize


sectors of the global Energy System the first being the distribution of natural gas to displace fossil natural gas with this renewable version that is carbon neutral or carbon negative and also uh renewable natural gas is directed towards the commercial transportation Space by replacing diesel fuel right so um I understand you've recently signed an agreement with zeg biogas can you tell us more about this deal and what this means for the company yeah this is a this is a really substantial deal for for green line it's


uh arguably you know one of the the most significant deals we've put in a place to date and uh the reason it's uh significant for us is that um as the market continues to grow for renewable natural gas and for a company such as Green Lane uh selling biogas upgrading Solutions we're always on the lookout for those kind of volume opportunities that allow us to scale uh and uh produce the same product uh in a uh in a volume capacity and with this arrangement with Zag and firstly we should explain whose egg biogas is


they're a company in Brazil 50 owned by Libra which was previously the fuel distribution unit of petrograss and and the deal is a collaboration between the parties uh whereby We've enabled uh zeg to locally produce market and sell one of Greenland's largest and most popular biogas upgrading uh Solutions in Brazil uh what we'll end up doing so green light will retain the responsibility for the product designs uh for commissioning locally and servicing of the products and zag will take care of the supply


chain locally in Brazil uh as well as the the assembly and Manufacturing so those parts those components that are not locally available on Brazil will provide those uh we'll import those uh into Brazil for presid and the Target that zag has is to produce 75 systems in the next five years um also related to the agreement is that the uh there's a minimum volume commitment in the first two years where the production capacity will be phased in over time by by zag how important is Brazil as a market for


your technology yeah Brazil is a is a really fantastic market for for biomethane like other markets around the world uh it is um it's emerging in terms of the um volumes of RNG or biomethane referred to in other parts of the world uh is growing from a from a relatively small base in Brazil uh the unique thing about Brazil is that they have some very large biomass uh sources so so biomethane or RNG it originates from organic sources in the case of Brazil uh that's two main uh locations so one is landfills uh and


Brazil the landfills are particularly large relative to other parts of the world and they have high loading of Organics uh you know fruits and vegetables and food waste and those kinds of things and because it's in the tropics it produces large quantities of biogas which the Green Lane technology that purifies into biomethane which is suitable for direct injection into the pipeline Network or according to vehicles the other even larger sector is the sugarcane industry uh in Brazil Brazil is the world's largest sugar cane


producing region uh and sugarcane result is used for two main things of course one is sugar and the other is ethanol so ethanol volumes in Brazil just to put this in perspective it's it's approximately the same volumes in Brazil as gasoline of the transportation sector so it's it's really a a huge Market the one of the waste products from the ethanol making process is a liquid called manasse that is currently just spread on the fields it's kind of sticky gooey stuff it attracts bugs it causes problems but


it actually contains energy and you can extract that energy in a digester to produce the biogas and then the Green Lane technology is used to purify that biogas made in those digesters into the biomethane that then be used as an energy source so it's a it's a very large Market opportunity there's more than 330 sugar Mills across the country engaged in the production of sugar and ethanol biosuel uh and really the industry there dates back to the 70s um where today Brazil is the second


largest producer of ethanol uh so it's it's really quite uh quite a huge Market opportunity the the Vanessa uh waste stream has not yet been captured like all the other waste streams uh associated with the sugar cane and um and ethanol making process in Brazil this is this is kind of the next uh key thing to optimize within that process the quantities are large uh and as I mentioned before over the next five years that is uh looking at zag's Target is for 75 um of the Green Lane systems to to be


produced locally and result to satisfy the need for both landfills and for the sugar Mills well that's a very interesting technology um and especially you know when we talk about you know reducing emissions and you know exciting very exciting for the company as well for for this opportunity to Mark to you know get into the Brazil Market so what else are we uh what get what else can investors expect from Green Lane this year while the start this year has been a little tough uh the the majority of our


Market is focused on the U.S market that's historically been uh the bulk of our sales in 2021 it was roughly uh roughly 85 percent of our Revenue was derived from the U.S market in 2022 that reduced to about 60 percent we are looking for uh continually to diversify our Revenue across the world so Brazil is important from from that perspective uh the first part of the year the U.S markets uh it has been tough because the prices are uh the crisis for RG are a little depressed right now due to the um


the carbon credit pricing in California um that is expected to recover over time with the air resources board uh expected to make changes in their program uh in addition we have the uh inflation reduction act in the U.S uh coming in it just came into Force January 1st uh when it came in it hasn't been fully defined uh so there's been a little bit of uncertainty but as that gets uh rolling we expect to see um uh significant support for the industry going forward um and for Green Lane what that means is


uh continue it continued effort to diversify across the world uh about a year ago we made an acquisition in Italy we expect to continue to invest to see that business Thrive throughout Europe uh and with this new deal in Brazil is uh is an excellent pathway for us to continue to grow in Brazil I didn't mention but to date Greenland is the market leader in Brazil for biogas upgrading and we believe that this relationship with it will allow us to solidify that market leading position in the country sounds great well I'm


looking forward to hearing more news about this Brazil deal well thank you for joining us today Brad and I hope to have you again next time thank you very much thanks for joining everyone join us again next time for another engaging conversation on CEO insights foreign