Greenlane Renewables stock rose after the company announced the acquisition of Airdep, a supplier of biogas desulfurization and air deodorization products.
The acquisition will enable Greenlane to own an efficient technology for removing hydrogen sulfide (H2S) from biogas. They plan to integrate it with Greenlane’s portfolio of biogas treatment systems that produce renewable natural gas (RNG).
Airdep was founded about 10 years ago and has used over 100 H2S purification systems. They use proprietary liquid reagents to remove H2S from biogas to do this. The liquid medium is recirculated and regenerated during the cleaning process to minimize operating costs.
Greenlane President and CEO Brad Douville said any project to produce RNG from biogas requires H2S cleanup. Using Airdep’s proven technology in their biogas retrofit solutions will improve the end product. He believes that the value for money of Airdep’s products is convincing. Therefore, in their search for the best commercial H2S biogas treatment technology, they chose Airdep’s solution.
Brad Douville also noted that Airdep performed well, thanks to strong revenue growth. However, the company has so far only expanded in the Italian market, which accounts for 90% of its total revenue. Now they plan to expand the geography of sales of these products to Europe, North and South America, as well as other regions of the world.
This acquisition provides Greenlane Renewables stock with a strong presence in Italy. This country is one of the most developing RNG production markets in the world. They have new opportunities to sell their gas purification systems on the Italian market.
Airdep founder and sole owner Andrea Valerio said the firm is excited to be part of Greenlane Renewables. Upon completion of the transaction, he will lead Airdep as Managing Director. The total amount paid for Airdep by Greenlane is 9 million euros.