BP secures RNG for the transportation market

US-based renewable natural gas company Gevo said August 9 it signed a definitive agreement with BP for the sale of renewable natural gas (RNG) made from dairy-farm manure at a facility in Iowa.

Gevo said the facility could be operational as early as next year. The company said it expects to produce the equivalent of 355,000mn Btu of RNG/yr from the site, and it will end up fuelling trucks.

Gevo signed a binding, definitive agreement with BP Canada Energy Marketing and BP Products North America for the sale of the RNG produced from the Iowa facility. BP will sell the RNG primarily in California.

“BP has a value chain that allows RNG to reach the transportation market, and it’s a pleasure to work with a company that shares our vision of a low-carbon future,” Gevo CEO Patrick Gruber said. “This is an excellent opportunity to meet the growing demand for RNG and to expand our RNG business.”

Gevo said it plans to submit an application to the state government in California for eligibility for its Low Carbon Fuel Standard (LCFS) programme, which is part of the state effort to cut greenhouse gas emissions by introducing new fuel options to the transportation sector.

Gevo in April closed on a $68mn bond to help finance the Iowa project. Gevo will use some of the funds from the bond to finance a gas-upgrade system that could send the RNG through an interstate pipeline network operated by Northern Natural Gas, which owns and operates the largest interstate natural gas pipeline system in the US.