Calgary, Alberta–(Newsfile Corp. – August 25, 2022) – Green Impact Partners (TSX: GIP) (“GIP” or the “Company”) is pleased to provide an update on its renewable natural gas (“RNG”) development projects and a summary of its second quarter 2022 results.
“We are pleased to begin our pre-commissioning activities at GreenGas Colorado. Our team has done an incredible job executing the project on time and on budget,” said Jesse Douglas, Chief Executive Officer. “Our project level equity process is advancing, and we remain committed to identifying the optimal strategic partnerships to help us accelerate our RNG portfolio. Recent policy developments in North America, including Clean Fuel Standards in Canada and the Inflation Reduction Act in the U.S., are positive catalysts for GIP and our potential partners. With this growing momentum for the RNG sector, we look forward to finalizing our equity process, forging new partnerships, and initiating construction on our near-term RNG project portfolio.”
RNG Project Updates
Pre-Commissioning Begins at GreenGas Colorado
GreenGas Colorado continues to be on time and on budget. All major equipment is on site with construction nearing completion. GIP’s operations start-up team is in place and the Company has commenced pre-commissioning. First gas production is anticipated before year end 2022.
Regulatory Advances for Future Energy Park
GIP continues to advance its permits and approvals and the execution of all material agreements for Future Energy Park. The Company is close to finalizing its remaining key contracts, including the engineering, procurement, and construction (“EPC”) agreement and RNG offtake agreement. Subject to receipt of regulatory approvals and the close of financing, GIP expects to start construction of the project in early 2023. This project is expected to require over $1.2 billion of capital investment, and the Company anticipates funding approximately 75% with project level debt financing. When completed in 2025, Future Energy Park is forecasted to generate over $300 million in annual EBITDA.
Iowa RNG Feedstock Expansion
Pre-construction activities continue for the Iowa RNG Project including finalizing the engineering and design, advancing permitting and negotiating material agreements, including offtake. GIP is replicating the successful execution of its GreenGas Colorado facility and, as a result, has accelerated the engineering and design process for Iowa RNG. Construction is anticipated to start in late 2022.FINANCIAL HIGHLIGHTS
|(in thousands of dollars)
|June 30, 2022
|June 30, 2021
|IFRS FINANCIAL MEASURES
|(in thousands of dollars)
|June 30, 2022
|June 30, 2021
|IFRS FINANCIAL MEASURES
Revenue: Revenues increased by $41.8 million and $58.8 million for the three and six months ended June 30, 2022, as compared to the same periods in the prior year, respectively. The majority of this increase was a result of increased revenue in the existing business due to favorable market conditions. In addition, the US recycling business, acquired in May 2021, added $2.2 million and $4.3 million in revenue for the three and six months ended June 30, 2022, respectively.
Adjusted EBITDA: The Company experienced lower margins this quarter primarily due to an isolated human error that resulted in Adjusted EBITDA of $(0.7) million and $0.5 million for the three and six months ended June 30, 2022, respectively.
For a more detailed discussion on GIP’s results for the three and six months ended June 30, 2022, please see the Company’s financial statements and management’s discussion & analysis (“MD&A”), which are available at: https://www.greenipi.com/investors/ and on the Company’s SEDAR page at www.sedar.com.
About Green Impact Partners
Green Impact Partners is focused on creating a more sustainable future and inclusive planet by developing clean energy. GIP acquires, develops, and builds RNG and clean bio-energy projects, with the intention of building, owning, and operating a portfolio of producing facilities, and participates in a wide range of zero-carbon opportunities during every stage of the project lifecycle – from idea generation through to operations. GIP has a growing portfolio of RNG and clean bio-energy projects under development, representing over $2 billion in capital expenditures over the next three years. In its pursuit of net zero earth impact, GIP is positioned to be a leading producer of decarbonizing energy in North America. GIP’s shares trade on the TSX Venture Exchange under the symbol GIP.V. For more information about GIP and its projects, visit www.greenipi.com.
EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. EBITDA is a non-IFRS measure, calculated by adding back the impacts of income tax, finance costs, depreciation and amortization to net income (loss) for the period. Net income (loss) is the most directly comparable IFRS financial measure. EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other issuers. Management believes EBITDA is an important performance metric that measures recurring cash flows before changes in non-cash working capital.
Adjusted EBITDA is defined as EBITDA adjusted for certain non-operating, non-recurring and non-cash items. Adjusted EBITDA is used by management to evaluate the earnings and performance of the Company before consideration of capital, financing and tax structures. Net income (loss) is the most directly comparable IFRS financial measure. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other issuers. Prior period Adjusted EBITDA has been calculated and presented in accordance with the current period calculation and presentation.
Management believes that in addition to net income (loss), Adjusted EBITDA is a useful supplemental measure to enhance investors’ understanding of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed, how the results are taxed, how the results are impacted by non-cash charges, and charges that are irregular in nature or not reflective of the Company’s core operations. Management calculates these adjustments consistently from period to period. Adjusted EBITDA is used by management to determine the Company’s ability to service debt and finance capital expenditures. Management believes that Adjusted EBITDA as a measure is indicative of how the fundamental business is performing.
This news release contains forward-looking statements and/or forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities laws. When used in this release, such words as “would”, “will”, “anticipates”, believes”, “explores” and similar expressions, as they relate to GIP, or its management, are intended to identify such forward-looking statements. Such forward-looking statements reflect the current views of GIP with respect to future events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause GIP’s actual results, performance or achievements to be materially different from any expected future results, performance or achievement that may be expressed or implied by such forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to: the impact of general economic conditions in Canada and the United States, including the ongoing COVID-19 pandemic; industry conditions including changes in laws and regulations and/or adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, in Canada and the United States; volatility of prices for energy commodities; change in demand for clean energy to be offered by GIP; competition; lack of availability of qualified personnel; obtaining required approvals of regulatory authorities, in Canada and the United States; ability to access sufficient capital from internal and external sources; many of which are beyond the control of GIP. Forward-looking statements included in this news release should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such forward-looking statements.
Readers are encouraged to review and carefully consider the risk factors pertaining to GIP described in the Company’s annual MD&A for the year ended December 31, 2021, which is accessible on GIP’s SEDAR issuer profile at www.sedar.com. The forward-looking statements contained in this release are made as of the date of this release, and except as may be expressly be required by law, GIP disclaims any intent, obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Management of GIP has included the above summary of assumptions and risks related to forward-looking statements provided in this release in order to provide shareholders with a more complete perspective on GIP’s current and future operations and such information may not be appropriate for other purposes. GIP’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits GIP will derive therefrom.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/134791