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.
CleanBay manages this process by mixing poultry litter with water in a closed system known as an anaerobic digester. One of the end products is biogas, which includes methane. The biogas can be processed into RNG and used to fuel vehicles. The company’s approach builds on the sustainability efforts of the agriculture community by re-purposing poultry litter into RNG and a controlled-release fertilizer designed for optimized nutrient management.
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% lower greenhouse gas (GHG) emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy study.
This step will be key for bp to reach its net zero ambition, bp says.
CleanBay is an environmental technology company focused on the production of sustainable RNG and engineered organic fertilizers. This agreement with bp directly supports the financing for its first active bio-conversion facility, planned in eastern Maryland. The company is actively exploring sites for future facilities in the Mid-Atlantic, Southeast and California. 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 a 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 onsite power needs and the production of alternative products like green hydrogen.