BP plc subsidiaries are set to expand their renewable natural gas (RNG) resources in a deal with a Gevo Inc. Iowa facility now under construction

BP Canada Energy Marketing Corp. and BP Products North America Inc. would buy the RNG, produced from dairy farm cow manure, from Gevo NW Iowa RNG LLC. Earlier this month BP and Gevo agreed to the sale from the Iowa facility, which is set for completion early next year.

Using feedstock from three dairy farms, the facility is to be capable of producing roughly 355,000 MMBtu/year of RNG, according to Gevo. 

“RNG is proving to be a key fuel in the energy transition,” Gevo CEO Patrick Gruber said. “BP has a value chain that allows RNG to reach the transportation market, and it’s a pleasure to work with a company that shares our vision of a low-carbon future. This is an excellent opportunity to meet the growing demand for RNG and to expand our RNG business.”

BP has long held the title of No. 1 North American natural gas marketer, according to NGI’s quarterly surveys. 

In related news, BP has a dispensing agreement with Clean Energy Fuels Corp. to sell RNG into the California market.

“Fleets that are looking to lower their emissions are switching to RNG because it can provide immediate and significant carbon reductions,” said Clean Energy Vice President Chad Lindholm. “They’re finding that RNG is the easiest and most cost-effective way to meet sustainability goals.”

RNG constitutes more than 74% of the 26 million gallons of fuel that Clean Energy predicted it could provide through recent agreements. It said it has multi-year agreements with cities that include the California cities of Pasadena, Sacramento and Redlands, along with Sacramento County. It also has agreements with Fort Smith, AR, and the Olathe School District in Kansas.