Vancouver-based Greenlane Renewables Inc. (GRN-T) saw improvements in its profitability and net loss in its Q4 and 2024 year-end results compared to the year prior, as it stays bullish on the global prospects of biogas.

The company, behind technology that upgrades the gas from organic waste into renewable natural gas (RNG), reported a net and comprehensive loss of $1.3 million in its financial year 2024 results. It marks a significant improvement from a loss of $28.3 million in 2023.

For Q4 2024, it generated net income of $1.9 million, compared to a loss of $16.8 million the same period the year prior. The difference was primarily due to a change in the fair value of a note receivable and foreign exchange gains, CFO Stephanie Mason said in an investor call.

Revenue for 2024 was $51.8 million, five per cent lower than $54.6 million in 2023. Greenlane generated 83 per cent of its revenue from systems sales in 2024, compared to 89 per cent the year prior. The remaining revenue was from services and royalty contracts.

Revenue in Q4 2024 was almost half of Q4 2023 — $8.5 million against $16.5 million. Mason explained the difference in Q4 revenue as driven by an $8.5-million reduction in systems sales.

“We made significant progress in 2024, as evidenced by our strong financial results and continued operational improvements,” Brad Douville, CEO of Greenlane, said on the call.

Expectations are for the RNG market to surge globally. Greenlane also plans to unveil a biogas upgrading technology that improves methane recovery from landfills while reducing costs.

Greenlane’s 2025 plans

Greenlane’s strategy for 2025 will centre around its products, project execution, the parts and service platform and royalty revenue, Douville said, along with prioritizing financial discipline, improving EBITDA and maintaining healthy cash reserves.

Mason elaborated on the company’s focus, saying it will look at profitable areas, namely its parts and services, biogas desulphurization and technology licensing. Another focus is boosting the profitability of its biogas upgrading systems segment.

The two patents Greenlane filed in 2024 for a new landfill gas upgrading technology are pivotal to its plan. Scheduled to be unveiled in October 2025, the new development called Cascade LF will seek to overcome the problem of impurities such as oxygen and nitrogen in landfill biogas, which hinders methane recovery and raises costs.

“We believe this will help move forward or advance the state-of-the-art of landfill gas upgrading in the industry,” Douville said.

Greenlane made efforts to reduce general and administrative expenses in 2024, and are expected to continue in 2025, Mason said. The company held on to $16.2 million in cash and cash equivalent by the end of 2024, a 37 per cent increase from 2023. As it has no debt, Greenlane has financial flexibility, she added.

Expected growth in RNG market

The RNG market is projected to flourish in the near future according to Douville, who pointed to several trends and developments that are boons for Greenlane’s sector.

He is excited by an International Energy Agency projection for RNG production to double from 2023-’27, which is expected to be led by Brazil. The European Union will need biogas for its decarbonization goals, and a bipartisan bill in the U.S. was introduced to extend the Inflation Reduction Act’s investment tax credit to biogas properties.

Natural gas producers expect energy demand to rise from the artificial intelligence (AI) and data centre segments of tech giants such as Amazon, Google, Microsoft and Meta, which RNG could fulfill.

“Greenlane believes that the near-term rapid uptake of natural gas for AI and data centres presents a new potential pathway for RNG,” Douville said, “as the tech companies ultimately fulfill their commitments to renewables by displacing that natural gas with RNG over time.”

Though U.S. President Donald Trump has acted to impair the clean energy sector, Douville said he is not too worried because the RNG business was still supported in his last presidential term. Plus, there are state-level programs in the U.S. such as the low-carbon fuel standards of California and Oregon that are not affected by the U.S. federal government, he noted.

Greenlane is assessing the potential impact of tariffs on Canadian imports to the U.S., but the company is not currently supplying upgrading systems to the U.S. that are reliant on components or assembly from Canada or Mexico, Douville explained.

“We are entering 2025 with a strong foundation to deliver on our strategic plan,” he said.