Gevo, the U.S.-based renewable energy company, announced this Monday that its subsidiary Gevo NW Iowa RNG will sell renewable natural gas to british oil major, bp. The agreements are settled with BP Canada Energy Marketing Corp. and BP Products North America Inc.
Firstly, Gevo is a transformative company that, through low-carbon and renewable-based carbohydrates produces net zero carbon solutions for fuels; such as gasoline, jet fuel; and now, renewable diesel and natural gas.
Secondly, the NW Iowa RNG project is currently under construction and will begin operations around 2022. Upon project completion, NW Iowa RNG will produce approximately 355,000 MMBtu of RNG per year.
Thirdly, such output will enter the California market under dispensing agreements that bp has in place with Clean Energy Fuels Corp.; the largest fueling infrastructure in the U.S. for RNG.
Moreover, Gevo projects that this subsidiary will benefit from environmental product revenues under California’s Low Carbon Fuel Standard program; and also, the U.S. Environmental Protection Agency’s Renewable Identification Number program.
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Gevo RNG to meet with bp’s vision to net zero
In addition, at the beginning of next year, NW Iowa RNG will generate cash distributions to Gevo of approximately $9 to $16 million per year. Furthermore, starting in 2024, Gevo will have the right to use a portion of NW Iowa RNG’s production as process energy at its Net-Zero 1 Project; or other production facilities, including future Net-Zero projects.
On the other hand, about the bp agreements, Gevo did not release more technical information about them; however, Patrick R. Gruber, Chief Executive Officer of Gevo, said. “This is an excellent opportunity to meet the growing demand for RNG; and also, to expand our RNG business. We are glad to be working with bp.”
He also remarked. “RNG is proving to be a key fuel in the energy transition. 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.”
Finally, RNG-fueled vehicles are estimated to result in up to 95 percent lower emissions than those fueled by gasoline or diesel on a lifecycle basis; according to a US Department of Energy study.
