BP to purchase Renewable Natural Gas for use in transportation

BP and CleanBay Renewables announced a 15-year agreement where bp will purchase renewable natural gas (RNG - bioMethane) processed from poultry litter – a mixture of manure, feathers and bedding – and sell it as fuel for the US transportation sector.

CleanBay manages this process by mixing poultry litter with water in a closed system known as an anaerobic digester. One of the end products is biogas, which includes methane. The biogas can be processed into RNG and used to fuel vehicles.

CleanBay’s approach builds on the sustainability efforts of the agriculture community by re-purposing poultry litter into RNG and a controlled-release fertilizer designed for optimized nutrient management.

Through this agreement, bp’s trading and shipping team will sell the fuel to its customers, initially in California. There is strong demand for RNG fuel in the state due to incentives from its Low Carbon Fuel Standard. RNG-fueled vehicles are estimated to result in up to 95 percent lower greenhouse gas (GHG) emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy study.

“Working with innovative companies like CleanBay will be key for bp to reach our net zero ambition. As one of the largest suppliers of RNG to the US transportation sector, this agreement will help us continue delivering competitive, reliable energy solutions.” said Michael Thomas, vice president biogas origination, bp

Thomas Spangler, executive chairman, CleanBay Renewables: “By collaborating with bp, we continue taking steps to positively impact our environment. Not only will our process improve the air, soil and water quality around our agricultural facilities, but our RNG is a sustainable, environmentally-friendly way to help reduce GHG emissions.”

Donal Buckley, CEO, CleanBay Renewables: “RNG is a necessary energy transition approach in the near-term, but green hydrogen and the use of RNG to power electric vehicle charging stations will be the backbone of a fast transition to a net zero future.”

Source: BP - Illustration CleanBay

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