CleanBay Renewables signs RNG supply agreement with bp
In the United States (US), energy major bp and biogas technology provider and project developer CleanBay Renewables Inc (CleanBay) have announced a 15-year agreement where bp will purchase renewable natural gas (RNG) derived from poultry litter — a mixture of manure, feathers, and bedding — and sell it as fuel for the transport sector.
CleanBay is an environmental technology company focused on the production of sustainable RNG and engineered organic fertilizers. CleanBay’s approach builds on the re-purposing poultry litter into RNG and a controlled-release fertilizer designed for optimized nutrient management.
This agreement with bp directly supports the financing for its first active bio-conversion facility, planned in eastern Maryland (MD) via its subsidiary CleanBay Delmarva.
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, CleanBay Renewables.
Through this agreement, bp’s trading and shipping team will sell the fuel to its customers, initially in California (CA). There is strong demand for RNG fuel in the state due to incentives from California’s Low Carbon Fuel Standard (LCFS).
RNG-fueled vehicles are estimated to result in up to 95 percent lower greenhouse gas (GHG) emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy (DOE) study.
Working with innovative companies like CleanBay will be key for bp to reach our net-zero ambition. 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, VP Biogas Origination, bp.
Developing project portfolio
CleanBay is actively exploring sites for future facilities in the Mid-Atlantic, Southeast, and California, the latter via its subsidiary Agland Renewables. Each of the 30 proposed CleanBay facilities is expected to generate enough sustainable energy to power 9 200 cars per year by recycling more than 150 000 tonnes of poultry litter annually.
Its goal is to establish a portfolio of RNG and power facilities that reduce local emissions and provide farmers with an alternative use for their poultry litter and fertilizer to increase their food production.
CleanBay has incorporated measures to further reduce its carbon footprint, including co-located solar power fields to meet the on-site power needs and the production of alternative products like green hydrogen.
RNG is a necessary energy transition approach in the near term, but green hydrogen and the use of RNG to power electric vehicle charging stations will be the backbone of a fast transition to a net-zero future, said Donal Buckley, CEO, CleanBay Renewables.