BP, Clean Energy Fuels to expand U.S. renewable natural gas transportation
That will support the firm’s continuing downstream renewable natural gas business. The deal enables both companies to accelerate the growth in renewable natural gas supply and meet the growing demand of the natural gas vehicle fuel market.
Renewable natural gas fuel, or biomethane, is produced entirely from organic waste.
As a fuel for natural gas vehicle fleets, including heavy-duty trucks, it is estimated to result in 70 percent lower greenhouse gas emissions than from equivalent gasoline or diesel fueled vehicles.
Under terms of the agreement, BP will pay $155 million for Clean Energy’s existing biomethane production facilities, its share of two new facilities and its existing third party supply contracts for renewable natural gas. Closing the transaction is subject to regulatory approval.
Clean Energy will continue to have access to a secure and expanding supply to sell to the growing customer base of its Redeem-branded renewable natural gas fuel through a long-term supply contract with BP. ■