Last year’s UN Climate Change Conference, COP26, concluded that achieving this objective would need yearly investments of 4 to 5 trillion dollars for decades. Over 450 corporations from 45 nations with assets over $130 trillion have committed to decarbonizing the global economy. After COP26, 136 nations, 115 regions, and 235 cities had pledged to achieve net-zero emissions by mid-century. According to the United Nations, 5,235 firms have made comparable commitments to reduce their carbon emissions. Collectively, these entities account for 90 % of the global GDP.
As emphasized by Ken Silverstein in Forbes, approximately 33 billion CO2 tons are released annually, and we have less than 30 years to hit net-zero — to reduce emissions and offset the balance. Currently, carbon credits are priced too low: anywhere from $5 to $15 a ton — if they are priced at all. Nevertheless, most of the time, CO2 goes uncharged. The price of those emissions must be high enough to motivate companies to buy new technologies that will decrease their pollution rates — technologies, in some cases, that is still on the drawing board.
SEC’s objective is to regulate the corporate climate scene
Acknowledging the rampant need for further action in the climate realm, in March 2022 SEC proposed regulation changes requiring enterprises to cover specific climate-related disclosures in their registration statements and progress reports, such as data about climate-related risks that are highly probable to have a material effect on the company, operating results, or financial state, as well as specific climate-related statement metrics in a note to their audited financial statements.
Since the SEC will soon mandate that corporations disclose their climate risks, institutional investors request information about the lingering risks. In addition, they are pressuring businesses to minimize their carbon footprints. Corporations must map out their carbon emissions and purchase carbon credits to offset those emissions that cannot be reduced by merely switching to renewable energy or implementing energy-efficient technology alone.
Overall, the proposed regulation responds to the increasing global momentum towards climate action and uniform disclosure of climate-related risks. Similar measures are being taken by the UK New Zealand, Japan, Hong Kong, and the EU.
Introducing Revolutionary Enterprises which Enables Corporations to Address climate Challenges
Cities and corporations are switching to cleaner resources, fuels, energy, and technology in response to the alarming rise of global emissions. For this pursuit, several innovative enterprises provide carbon-reducing solutions.
Emerging as a pioneer in smart buildings and cities leveraging IoT, Cloud and SaaS technologies, Kontrol Technologies (NEO: KNR) (OTCQB: KNRLF) introduced Kontrol Carbon as its cutting-edge solution to help its commercial and industrial clients in GHG emission monitoring mitigation and carbon credit monetization. So far, Kontrol has been elected to deliver an energy management solution for the common areas of two commercial buildings by a USA REIT that manages hundreds of properties throughout North America. To provide visibility, analytics, and intelligent control over areas that have experienced a significant increase in energy costs, Kontrol will deploy its SmartSuite technology and Cloud platform as part of the energy management solution, enabling the company to provide an energy management solution.
Following a competitive selection process, a prominent Canadian University has chosen Kontrol to offer precise energy evaluations and a carbon reduction roadmap by June 2022. Furthermore, for the first quarter of 2022, Kontrol reported record revenues of $26.6 million, up 702 % year-over-year, resulting in a net gain of $1.6 million versus a net loss of $823,733 in the first quarter of 2021.
Similarly, Dynamhex uses artificial intelligence to make the path to carbon reduction simple and accessible. Utilizing localized data, their API platform increases stakeholder participation and dramatically decreases the time required to plan, execute, and monitor climate initiatives and discover opportunities to enhance services. The platform’s marketplace for climate-tech makes it simple to find colleagues. In 2021, Dynamhex completed a seed round of $1.5 million. Multiple local agencies and utilities are now using Dynamhex.
While governments are encouraging businesses to declare their carbon emissions in increasing numbers, tracing the necessary carbon data is challenging. Aiming to innovate the tracking of supply chain emissions, Normative’s ‘accounting engine’ for emissions makes it simpler for businesses to comply with this requirement. The Stockholm-based firm has built a reputation for itself by gaining partners such as the United Nations Race to Zero campaign, which seeks to accelerate the transition to a low-carbon economy. Ultimately, Normative’s strategy is to standardize the sometimes uneven, costly, and labour-intensive carbon accounting process.
Uncovering the Path Forward for Clean Tech
By minimizing the environmental effects of historically destructive businesses via the development of novel technologies, businesses are in an excellent position to address the ongoing carbon reporting requirements.
Aduro Clean Technologies
Over the past few decades, the industrialized world has made enormous strides, with the use of inexpensive fossil fuels. However, this has created an environmental threat that could result in irreparable harm, making such growth a double-edged sword. And it's quite unfortunate that technologies currently in use are difficult in conjunction with operational, and financial constraints. Without much ado, this article aims to provide you with an overview of what “Aduro Clean Technologies” does. It's all about a creative solution to this inequity.
Introduction of Aduro Clean Technologies
The company Aduro Clean Technologies (CSE: ACT) (OTCQB: ACTHF) creates proprietary water-based innovations to chemically reuse plastic wastes, transform heavy oil and bitumen into smaller, more valuable oil, and turn regenerative oils into significantly greater fuels or greener chemicals. The company's Hydrochemolytic technology, a game-changing method that transforms low-value feedstocks into resources for the twenty-first century, activates special features of water in a chemical platform that functions at a low cost and temperatures. The business has created a pre-pilot reactor system to transform heavy petroleum into lighter oil with financial assistance and backing from Bioindustrial Innovation Canada. Here's a quick one, Aduro Clean Technologies is the next-generation technology platform that can produce high-value products from waste.
Collaboration with CPP
The Canada Plastics Pact (CPP), a multi-stakeholder, manufacturing, cross-value stream network, is addressing plastic waste and pollution. The CPP pulls together partners that share a commitment to developing a sustainable future in Canada that keeps plastic waste out of the environment and in the economy. With defined, actionable goals for 2025, it combines corporations, the authorities, non-governmental agencies, and other important players in the native plastics value chain. The Ellen MacArthur Foundation's Global Plastics Pact network includes the Canada Plastics Pact as a member. It runs as a stand-alone program of The Natural Step Canada, a national nonprofit with more than 25 years of expertise pushing science, innovation, and strategic leadership to promote a robust and inclusive economy that flourishes within.
Some Key Bullish Points On Aduro Clean Technologies
- Expected large power productivity of more than 80% and immense operating profits
- Unique proprietary technology that was created in-house, and independently validated getting close to 50%
- Significant collaborations with Switch Fuel in Ontario and future pilot sites at Brightland's in the Netherlands are ongoing with 13 potential clients spanning 7 countries, as well as Fortune 500 firms
- Increased income from commercial deployment onwards is anticipated to generate +$90M in annual recurring revenue with 80 percent EBITDA margins in the coming years
- Management has complete shareholder adequacy with around 50% ownership
Latest Milestone Achievements of Aduro Clean Technologies
- Oversubscribed financing closed – Aduro improved its financial sheet on April 28, 2022, by concluding a non-brokered private equity offering that raised C$2,352,666, surpassing the previously stated funding goal of C$2 million.
- On March 29th, 2022, Aduro Clean Technologies and Switch Energy Corp. signed a statement of intent to create, supply, and operate a pre-commercial pilot facility to turn used agro polymers into high-value goods.
Aduro participated in Canada’s commercial trade trip to Mexico’s Monterrey, Nuevo Leon, in November 2021 for the Mexican Petroleum Congress.
- Modular go-to-market approaches – To create scalable facilities to manufacture roughly 10,000 tons of fuel and/or high-value specialty chemicals yearly, multiple manufacturing strategies are in place.
- In addition, Aduro Clean Technologies has just announced the extension of its laboratory facilities to speed up its research and improve its capabilities to accommodate possible client trials. The enlarged laboratory is a multi-tenant building located in London, Ontario’s Newbold Business Park. The 4371 ft building will increase the capacity to quicken the development of new technologies and enhance customer engagement program.
Aduro Clean Technologies has seen a very strong reversal even during these volatile times in the market, shares of ACT increased approximately 58% from consolidated levels of $.50 cents to hitting a high of $.79 cents in 7 trading sessions.
With initial tractions gained in October 2020 and touching their all-time highs in the next four months that followed, Greenlane has significantly improved its fundamentals, revenue being 2.5 times in 2021 as in the past year.
Greenlane Renewables (TSX: GRN) started in 1986 and installs its first biogas upgrading plant in France in 1993. In 2010-18 they made 77 installations in the UK, Canada, Finland, Denmark, Norway, the Netherlands, USA, China, and Brazil. Greenlane had become a global provider of biogas upgrading systems and helps waste producers, gas utilities, and project developers do more with biogas, helping them turn a low-value product into a high-value low-carbon renewable resource.
Greenlane had generated $55 Million in revenue in 2021, 26% being the gross margin. More interestingly the company had maintained growth of over 100% in the past 2 years. The main objective of the company is to increase recurring revenues and profits by adding exposure to lucrative RNG off-take contracts and the associated environmental attributes. Furthermore, Greenlane is investing in specialized developments which will help them accelerate RNG(Renewable Natural Gas) projects to the ready-for-construction phase, and secure additional Greenlane system sales and services which will result in equity profits for Greenlane.
Rather than owning 100% of limited projects, Greenlane focuses on participation in a large number of projects which ultimately diversify the revenue streams. In response to that they announced their first development capital project in June with an RNG-focused company on a dairy cluster model.
Greenlane is the only company that offers three major biogas upgrading technologies (water wash, Pressure Swing Adsorption, and Membrane separation) to customers. They are working with fully outsourced manufacturing and an asset-light business model for faster scalability and global exposure to the company. Adding to it they also own 14 patents and 28 device titles in the RNG space.
At the beginning of June, GRN received their first Deployment of Development Capital for the Renewable Natural Gas (RNG) project and have been deploying development capital in milestones which will further extend to US$ 0.9 Million. In addition, they also received repeat orders of $8.7 Million in RNG projects in the United States. In response to that Brad Douville, President and CEO of Greenlane mentioned that "Greenlane continues to be selected for important RNG projects based not only on the attractiveness of our products, but also the commitment of our people to customer service"
Based on a report published by the Agriculture department of the US, 30 to 40% of the food supply ends up being food waste. It has been a great opportunity for Greenlane as they had made an $11 Million contract to convert the food waste into carbon-efficient biogas. As of now, Greenlane had sold 100 hydrogen sulfide treatment systems and 135 biogas upgrading systems in 19 countries over 30 years.
On July 2, 2022, Greenlane Renewables stock is trading at CAD$ 0.69 just above its 52-week low with a market cap of CAD$ 103.9 Million.
Here are some reasons as a value investor why you should keep an eye on this company –
World is Decarbonizing
According to IEA World Energy Outlook 2021, it is expected that the market for biogas upgrading equipment will be $90 Billion by 2050. Even further it is estimated that the new decade (2020-2030) market will grow at an exponential rate being 21% CAGR.
Greenlane Renewables is in the industry for more than 30 years and has been consistent with revenue growth and developing the sustainability of the business.
Greenlane had worked with the largest RNG production facilities in the recent past like Gustrow (Germany) and Montreal (Canada) had an edge over its competitors. The company has been delivering consistent revenue in the RNG sector and also receives a major portion of revenue from repeat orders. In recent months they received repeat orders valued at CAD$ 8.7 Million.
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