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BP and Clean Energy Fuels reach agreement to increase RNG supply

In the United States (US), global oil and gas major BP p.l.c. and Clean Energy Fuels Corp., a leading provider of fossil- and renewable natural gas (RNG) fuel for transportation in North America have announced an agreement which will secure an increased supply of RNG for Clean Energy through Clean Energy’s extensive fueling infrastructure as more fleets are requesting the clean fuel.

In 2013 Clean Energy Fuels Corp., North America’s largest provider of natural gas for transportation, announced that it will be the first company to commercially distribute a renewable natural gas (RNG) vehicle fuel, called Redeem, made from waste streams such as landfills, large dairies and wastewater treatment plants (WWTP) directly to fleets around the country and at the 35 public Clean Energy Fuels filling stations throughout California (photo courtesy Clean Energy Fuels).

According to a joint statement on October 11, the agreement enables BP to flow larger volumes to Clean Energy stations as the supply of RNG is expected to rapidly grow over the next several years with a number of new renewable natural gas (RNG) production facilities under construction and more announced. In turn, Clean Energy will share in the incremental environmental credit revenues generated from the incremental RNG volume.

Redeem RNG is derived from biogenic methane, biomethane or biogas, which is methane that is naturally generated by the decomposition of organic waste. The methane gas is processed, purified and sent into the interstate natural gas pipeline and is currently made available exclusively to Clean Energy customers.

As a fuel for natural gas vehicles (NGVs), including heavy-duty trucks, it is estimated to result in 70 percent lower greenhouse gas (GHG) emissions than from equivalent gasoline or diesel fuel vehicles, which makes it one of the cleanest fuel available.

The growth of our Redeem RNG has been astounding as municipalities and companies all over the country are achieving their sustainability and greenhouse gas reduction goals by switching their fleets. This agreement combines BP’s significant investments in RNG projects and supply network with Clean Energy’s vehicle fueling network and will help to create certainty for future RNG project development and continue to accelerate adoption of natural gas vehicle fueling, said Andrew J. Littlefair, President and CEO, Clean Energy.

Clean Energy has grown sales of its Redeem branded RNG from 22 million gasoline-equivalent gallons (GGEs) in 2014, the first full year it was available, to an expected 100 million GGEs in 2018.

As one of the largest suppliers of renewable natural gas to the U.S. transportation sector, BP is committed to supporting the transition to a lower-carbon energy future. Our agreement with Clean Energy reflects that commitment, and we believe today’s announcement will help to accelerate the growth of RNG and promote a more sustainable energy mix, said Sean Reavis, BP Senior Vice President – Global Environmental Products.

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