Thursday, 26 August 2021
bp signs a 15-year agreement to purchase Renewable Natural Gas (RNG) or, in the other term, Biomethane from CleanBay Renewables to supply the US transport sector.
The procurement of RNG from CleanBay Renewables will be carried out by bp’s trading and shipping team with an initial aim to supply the green gas to the company’s clients in the transport sector, starting with California. The RNG will be produced from poultry litter, which is a mixture of manure, feathers, and bedding.
“Working with innovative companies like CleanBay will be a key for bp to reach our net-zero ambition,” and “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 of biogas origination at bp.
“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,” said Thomas Spangler, executive chairman of CleanBay Renewables.
CleanBay is actively seeking to expand to the Mid-Atlantic, Southeast, and California to enlarge its portfolio of RNG and power facilities. The company aims at reducing local emissions and providing farmers with opportunities for extra income from their poultry litter. Each of the company’s proposed production plants is expected to use more than 150,000 tons of poultry litter annually, being capable of supplying fuel for 9,200 cars per year.
RNG or biomethane fuel is in strong demand in the state, following incentives from the Low Carbon Fuel Standard (LCFS). According to the US Department of Energy, vehicles fuelled with RNG contribute up to 95% greenhouse gas (GHG) emissions reduction, compared to those fuelled by fossil fuels based on a life-cycle basis.
About Low Carbon Fuel Standard (LCFS)
The Low Carbon Fuel Standard (LCFS), introduced in 2011, is one of the nine discrete early action measures to reduce California's greenhouse gas (GHG) emissions. The initiative is designed to decrease the carbon intensity of California's transportation fuel pool as well as promote the use of low-carbon and renewable fuel alternatives. The figure below shows the performance of the programme and projection to 2030.
The LCFS has a target to achieve a 20% reduction by 2030. The programme specifies a declining annual target or compliance standard (shown in figures). The initiative is expected to continue after 2030 with a to be determined stringency.