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08/25/2021

BP to Sell Renewable Natural Gas Derived From Poultry Litter

The 15-year agreement with CleanBay Renewables is part of BP's goal to become a net zero company.
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CHICAGO — BP is partnering with CleanBay Renewables on a 15-year agreement through which BP will purchase renewable natural gas (RNG) processed from poultry litter and sell it as fuel for the U.S. transportation sector. The litter is a mixture of manure, feathers and bedding.

Based in Princess Anne, Md., CleanBay is an environmental technology company that focuses on the production of sustainable RNG and engineered organic fertilizers. Its agreement with BP directly supports the financing for its first active bio-conversion facility, planned in eastern Maryland.

CleanBay manages the 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, that can be processed into RNG and used to fuel vehicles. CleanBay'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, according to the announcement.

"Working with innovative companies like CleanBay will be key for BP to reach our net zero ambition," said Michael Thomas, vice president biogas origination, BP. "As one of the largest suppliers of RNG to the U.S. transportation sector, this agreement will help us continue delivering competitive, reliable energy solutions."

Through the agreement, BP's trading and shipping team will sell the fuel to its customers, initially in California, where there is strong demand for RNG due to incentives from the state's Low Carbon Fuel Standard. A U.S. Department of Energy study shows that 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.

"By collaborating with bp, we continue taking steps to positively impact our environment," said Thomas Spangler, executive chairman, CleanBay Renewables. "Not only will our process improve the air, soil and water quality around our agricultural facilities, but our RNG is a sustainable, environmentally-friendly way to help reduce GHG emissions."

CleanBay 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. Each of the 30 proposed CleanBay facilities is expected to generate enough sustainable energy to power 9,200 cars per year by recycling more than 150,000 tons of poultry litter annually.

With U.S. headquarters based in Chicago, BP plc is a global energy producer with operations in nearly 80 countries. Its goal is to become a net zero company by 2050 or sooner, and to help the world get to net zero.