Greenlane Renewables Inc.

Good day, ladies and gentlemen, and welcome to the Green Lane Renewables Q1 2023 conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 11, 2023. I would now like to turn the conference over to Darren Seed. Please go ahead, sir.

Thank you, operator, and good afternoon. Welcome to the Green Lane Renewables First Quarter 2023 Conference Call. I'm joined today by Brad DeVille, Green Lane's President and Chief Executive Officer, and Monty Balderson, Green Lane's Chief Financial Officer. Before beginning our formal remarks, we'd like to remind listeners that today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. Green Lane Renewables does not undertake to update any forward-looking statements except as made by required by applicable laws. Listeners are urged to review the full discussion of risk factors in the company's annual information forum. which has been filed with the Canadian securities regulators. Lastly, while this conference call is open to the public and for the sake of brevity, questions will be prioritized for analysts. Now I'll turn the call over to Brett.

Good afternoon and thank you everyone for participating on today's call. I'd like to start off with a brief recap of our business progress and updated outlook along with some industry commentary before I turn the call over to Monty for a more detailed review of the numbers. Four years ago, when we launched Green Lane Renewables as a standalone public company, we told investors that RNG demand would grow rapidly due to its attractiveness as a low-carbon and carbon-negative drop-in substitute for fossil natural gas, which would be supported by the adoption of an increasing number of regulatory incentives, policies, funding mechanisms around the world as governments, industry, and consumers recognize the potential of RNG to help meet greenhouse gas reduction targets. We were right. Global production of RNG has gone from roughly 150 billion cubic feet in 2019 to 250 billion in 2022, a compound annual growth rate of 20%. RNG is now a key global energy asset and will continue to grow and replace fossil fuels using the existing distribution infrastructure. We also told investors that we would offer the three major biogas upgrading technologies, water wash, pressure sink absorption, and membrane separation, building out comprehensive solutions for our customers' needs. We've sold many of each. In fact, over the last four years, as a trusted industry technology provider, we have sold 40 systems worth $168 million to customers worldwide across the three product technologies. In 2022, we had compelling in-house biogas desulfurization technology because every biogas project has hydrogen sulfide, and we saw an opportunity to add more value to our customers. As an established leader in the global R&G industry and through delivering these projects, we've deepened our understanding of the market and we're taking the opportunity to reflect and refocus how we want to lead into our future. Given that growth is never a straight line, we're resetting and we've honed our strategy to target attractive market segments where Greenland can realize volume opportunities. And from a financial standpoint, as part of this trajectory, we're focused on our future and expect to be cash flow positive and adjusted EBITDA positive in the next 12 months. We're confident in our capabilities and each of the technologies we offer, and we fine-tuned our product portfolio to deliver configurable systems faster, replicate them across many similar opportunities, optimize costs, and drive measurable value to our customers. Our collaboration with ZEGG Biogas, which we announced last month, is a prime example of this strategy in action offers us the opportunity to create another step change in global rng production capacity we've seen the global rng market evolve through growing consolidation and sophistication in our customer set with large energy companies continuing to focus on low carbon or in the case of rng carbon negative fuels for example oil and gas majors bp and shell are now integrating recently completed major acquisitions in the RNG sector into their respective businesses with significant plans for growth. BP, through its acquisition of ArchaEnergy, is targeting annual biomethane production of 145 million MMBTUs by 2030, from the current 13 million MMBTUs through ArchaEnergy's significant development pipeline, while Shell, through its acquisition of Nature Energy, is looking to scale up its existing R&G business as part of a strategy to build a global integrated biomethane value chain. Against this backdrop, we remain optimistic not only about the future of our industry, but also Greenland's market position. Circling back to the Brazilian market and the exciting opportunity we have with ZEGG Biogas in particular, we've laid a new path forward with a royalty-like business model to establish industrial-scale volume production of Greenland's Tatara Plus water wash biogas upgrading product locally in Brazil. As a reminder, ZEGG Biogas is 50% owned by Vibra Energia S.A., previously the fuel distribution unit of Petrobras. The Tatara Plus is one of Greenland's largest and most popular biogas upgrading products. ZEGG Biogas is initially focused on the large landfill and even larger sugar mill to waste biomethane opportunities that exist in Brazil. Their goal is to deliver 75 Tatara Plus systems over the next five years, which would install greater biogas processing capacity than the more than 140 units Greenlane has delivered over the last 30 years. Production capacity in Brazil will be phased in by ZEG biogas over time, with a minimum volume commitment in the first two years. The biomethane opportunities in Brazil are wide open and largely untapped. The Brazilian sugarcane sector is a promising new and immense market opportunity for biomethane. Today, there are more than 330 sugar mills across the country engaged in the production of sugar and ethanol biofuel. The latter produces vast quantities of a liquid byproduct called vanasse, which is an untapped and ideal feedstock for the production of biomethane. The ethanol biofuel production industry in Brazil dates back to the 1970s, and today the country is the world's second largest producer. The consumption of ethanol biofuel is equivalent to gasoline volumes in the country's transportation sector. Biomethane production from sugar mill waste across the entire sector has the potential to exceed the total current natural gas consumption in Brazil. I'll now pass the call over to Monty.