bp and CleanBay Renewables announced a 15-year agreement where bp will purchase renewable natural gas (RNG) processed from poultry litter—a mixture of manure, feathers and bedding—and sell it as fuel for the US transportation sector.

Through this agreement, bp’s trading and shipping team will sell the fuel to its customers, initially in California. There is strong demand for RNG fuel in the state due to incentives from its Low Carbon Fuel Standard. 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 study.

Michael Thomas, vice president biogas origination, bp: “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.”

Read more at BusinessWire.com