Clean Energy Fuels, leading RNG company, announced this Thursday that its joint venture with bp focused on delivering low carbon fuels has new projects on sight, broadening its previously announced plans. The new projects will begin in the US Midwest.
Firstly, the joint venture between these companies focuses on financing and developing renewable natural gas (RNG) projects at dairy farms. Producing this fuel from dairy sites is an important step towards the decarbonization of the economy.
Indeed, agriculture is one of the most polluting sectors. According to the US Environmental Protection Agency, it accounts for nearly 10% of the US greenhouse gas emissions mix. Capturing methane from agriculture can lower such emissions substantially. Moreover, by capturing methane and other gases, the companies can produce RNG; a low to negative carbon fuel suitable for transportation and other industrial uses.
In fact, the California Air Resources Board has given similar projects a carbon intensity (CI) score of a weighted average of -320 compared to CI scores of 101 for conventional diesel fuel and 15 for electric batteries.
As a result, Clean Energy Fuels and bp will develop RNG projects in dairy sites. Dynamic Holdings will oversee the development, construction, and operation of these new facilities. According to the statement, the first of these projects might be operational by 2022.
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In addition, with over 550 dispensing locations, Clean Energy has the largest network of RNG stations in the US. At the same time, bp’s world-class trading organization transports RNG to California markets and monetizes the environmental credits associated with dispensing the RNG.
Consequently, the joint venture has key strengths from its parent companies and will develop critical projects for the US economy decarbonization. Clay Corbus, senior vice president and co-head of renewable fuels at Clean Energy Fuels, said about the matter. “Our joint venture with bp to develop new supplies is critical to keeping up with this demand.”
He also remarked that, indeed, “the demand for RNG is rapidly growing, highlighted by our recent announcement to fuel a new fleet of Amazon heavy-duty trucks deploying across the country.” Consequently, the RNG produced out of these projects will flow towards Clean Energy Fuel’s fueling infrastructure.
Finally, Sean Reavis, bp biogas origination, said. “These collaborations are critical steps toward our ambition of helping the world reach net zero by 2050 or sooner. Our biogas strategy is focused on growth and developing an integrated business model that allows us to deliver the unique energy products the market is demanding.”
