bp will purchase poultry litter-derived RNG from CleanBay Renewables under a 15-year agreement.
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.
The RNG will be processed from poultry litter – a mixture of manure, feathers and bedding – and be sold as fuel for the US transport sector.
RNG-fuelled vehicles are estimated to result in up to 95% lower greenhouse gas (GHG) emissions than those fuelled by petrol or diesel on a life-cycle basis, according to a study by the US Department of Energy.
“Working with innovative companies like CleanBay will be key for bp to reach our net-zero ambition,” said Michael Thomas, vice-president of biogas origination at bp.
“As one of the largest suppliers of RNG to the US transportation sector, this agreement will help us continue delivering competitive, reliable energy solutions.”
Thomas Spangler, executive chairman of CleanBay Renewables, commented: “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.”
CleanBay is actively exploring sites for future facilities in the Mid-Atlantic, Southeast and California. Its goal is to establish a portfolio of RNG and power facilities that reduce local emissions and provide farmers with an alternative use for their poultry litter and a fertiliser to increase their food production.
Each of the 30 proposed CleanBay facilities is expected to generate enough sustainable energy to power 9,200 cars per year by recycling more than 150,000 tons of poultry litter annually.