BP and Clean Energy Announce Partnership to Expand RNG Transportation Fueling

March 21st, 2017 by Fiedler Group

Earlier this month BP and Clean Energy Fuels Corp. announced BP’s intention to acquire Clean Energy’s upstream renewable natural gas business and sign a long-term supply contract with Clean Energy to support the firm’s continuing downstream renewable natural gas business.

The pact, calls for BP to pay $155 million for Clean Energy’s existing biomethane production facilities in Canton, Mich. and North Shelby, Tenn., their share of two facilities under construction in Oklahoma City, Okla. and Atlanta, Ga., and Clean Energy’s existing third party supply contracts for renewable natural gas.

BP will continue to subcontract the operations of these facilities to Clean Energy.

Alan Haywood, chief executive officer of BP’s supply and trading business noted “Demand for renewable natural gas is growing quickly and BP is pleased to expand our supply capability in this area.  BP is committed to supporting developments towards a lower carbon future and, working with Clean Energy, we believe we will be well-positioned to participate in the growth of this lower carbon fuel in the U.S.”

The new agreement further stipulates that Clean Energy will continue to have access to a secure branded renewable natural gas fuel supply, allowing for expansion of its Redeem™ customer base at its North American network through a long-term supply contract with BP.

Commenting on the recent agreement, Andrew Littlefair, Clean Energy’s president and chief executive officer stated “We started our Redeem fueling business from scratch less than four years ago and have grown it into a significant enterprise. This transaction will help to take it to the next level. BP’s investment in and focus on renewable natural gas supply will ensure that Clean Energy can meet the growing demand of our customers for low carbon, renewable fuel.”

Made available exclusively to Clean Energy customers, Redeem renewable natural gas is derived from biogenic methane, biomethane or biogas, which is methane that is naturally generated by the decomposition of organic waste.

To learn about Fiedler Group’s experience with both compressed natural gas (CNG) and liquefied natural gas (LNG) fueling facilities please contact us today.