Greenlane Renewables (Greenlane) has entered into a collaborative agreement with ZEG Biogás e Energia S.A. (ZEG Biogás), a company 50% owned by Vibra Energia S.A. (VIBRA), previously the fuel distribution unit of Petrobras, to locally produce, market and sell one of Greenlane’s largest and most popular biogas upgrading products in Brazil.
The terms of the agreement will see Greenlane and ZEG Biogás collaborate to establish volume production of Greenlane’s Totara+ Water Wash Biogas Upgrading Product, which is capable of processing up to 2,500 Nm3/h of inlet biogas, in Brazil.
ZEG Biogás has received exclusive rights to localise the supply chain and manufacture the product in Brazil under the Greenlane brand, and to market and sell the product to biomethane-producing projects in which ZEG Biogás has an equity stake, or a biomethane off-take agreement.
Greenlane will retain responsibility for the product design, the supply of components not available locally in Brazil, and the local commissioning and servicing of the products.
Initial target markets are those of landfills and sugar mills. ZEG Biogás' goal is to reach the production of 75 Totara+ systems in the next five years. Production capacity will be phased in over time, with a minimum volume commitment in the first two years.
VIBRA, one of Brazil's largest energy companies has committed to investing up to R$412 million (€73.1m) in ZEG Biogás over the next few years, for the execution of new biogas/biomethane projects.
“We have worked with ZEG Biogás for many years and have been impressed by the progress achieved and the partnerships formed, turning into reality the large landfill and even larger sugar mill waste biomethane opportunities that exist in Brazil,” said Brad Douville, CEO of Greenlane.
“With VIBRA’s 50% ownership of ZEG Biogás and its significant commitment of capital, the result is the most important deal we have done to-date at Greenlane. We believe it opens up an excellent opportunity to accelerate the production of biomethane in Brazil, at an industrial scale.”
Greenlane Renewables announces collaboration with ZEG Biogás for Brazilian market
