BP to buy poultry litter-derived RNG from CleanBay Renewables

Annapolis, Maryland-based CleanBay Renewables Inc on Tuesday said it has signed a 15-year agreement with BP plc (LON:BP) to sell the UK-based energy group renewable natural gas (RNG) derived from poultry litter through anaerobic digestion.

BP’s trading and shipping team will sell the RNG as fuel for the US transportation sector, initially in California, where demand for RNG fuel is strong because of the incentives from the state’s Low Carbon Fuel Standard.

CleanBay said the deal supports the financing for its first active facility, slated for eastern Maryland. The company wants to create a portfolio of 30 facilities in the Mid-Atlantic, Southeast and California, each of which is expected to be capable of recycling more than 150,000 tonnes of poultry litter a year and producing enough energy to power 9,200 cars. To reduce its carbon footprint, the firm envisages measures such as co-located solar arrays to meet onsite power requirements and the production of green hydrogen.

For BP, the partnership is in line with its 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,” added Michael Thomas, vice president biogas origination, BP.

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