Clean Energy Fuels, bp finalise dairy RNG joint venture
Clean Energy Fuels Corporation has finalised a joint venture (JV) with BP Products North America, a subsidiary of bp, to develop, own, and operate new RNG projects at dairies and other agriculture facilities.
Each company will retain 50% voting control in the JV, which will be initially funded with $50 million (€42 million) previously provided by bp and another $30 million (€25.2 million) from Clean Energy. The JV anticipates adding preferred stock and debt to increase committed investment capital. Clean Energy will be the operating partner.
“The fact that we were able to work out the details of this JV so quickly after announcing our intent in December is a testament to the commitment of both companies to get more RNG into the marketplace,” said Andrew J Littlefair, CEO and president of Clean Energy.
“Clean Energy continues to sign new RNG agreements with trucking companies, transit agencies, and other transportation fleets all looking to reduce the carbon footprint of their operations. This JV will provide additional RNG going forward and enable us to expand that customer base.”
Sean Reavis, senior vice-president of low carbon trading at bp, commented: “The expansion of our RNG portfolio aligns with bp’s ambition to become a net-zero company by 2050 or sooner and to help the world get to net zero.
“We look forward to continuing our work with Clean Energy on exciting projects aimed at reducing the carbon intensity of our products and helping customers lower their carbon footprint.”
Each company will retain 50% voting control in the JV, which will be initially funded with $50 million (€42 million) previously provided by bp and another $30 million (€25.2 million) from Clean Energy. The JV anticipates adding preferred stock and debt to increase committed investment capital. Clean Energy will be the operating partner.
“The fact that we were able to work out the details of this JV so quickly after announcing our intent in December is a testament to the commitment of both companies to get more RNG into the marketplace,” said Andrew J Littlefair, CEO and president of Clean Energy.
“Clean Energy continues to sign new RNG agreements with trucking companies, transit agencies, and other transportation fleets all looking to reduce the carbon footprint of their operations. This JV will provide additional RNG going forward and enable us to expand that customer base.”
Sean Reavis, senior vice-president of low carbon trading at bp, commented: “The expansion of our RNG portfolio aligns with bp’s ambition to become a net-zero company by 2050 or sooner and to help the world get to net zero.
“We look forward to continuing our work with Clean Energy on exciting projects aimed at reducing the carbon intensity of our products and helping customers lower their carbon footprint.”
