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Biogas is a significant part of bp’s overall bioenergy transition growth engine. It is a low-cost alternative to other renewable products, helping our large existing customer base and new customers take steps to decarbonize cost-effectively by using existing pipeline networks and energy infrastructure.

Biogas is produced when organic material decomposes in anaerobic conditions. This organic material is collected from either animal waste or landfill waste. Using proven membrane gas separation technology, biogas can be processed to remove impurities and separate CO2 to produce pipeline-quality renewable natural gas (RNG), which is a lower carbon replacement for traditional fossil fuel-based natural gas.

We create value in this business by combining our existing biogas portfolio with bp’s projects and operations capabilities, and through our expertise in trading and optimization.

  • As an example, biogas can help us to decarbonize bp's own portfolio, acting as a lower carbon alternative for bp's natural gas needs.  
  • In Europe, we are already delivering RNG to our Aral CNG (compressed natural gas) stations in Germany and in the future can potentially deliver RNG to our refineries to help power their operations. 
  • In the United States, our joint venture with Clean Energy, RenewCo, produces biogas from dairy farms across the country, and in December 2022, bp acquired Archaea Energy Inc. - the largest producer of RNG in the US. We offer RNG to our natural gas and transport customers customers to help them decarbonize. We also provide RNG through our Clean Energy co-marketing agreement.

The biogas business serves as bp’s face to the biomethane market. This includes both physical biomethane markets, as well as for the environmental certificates traded under markets established by the U.S. EPA’s Renewable Fuels Standard, the UK Department for Transport’s Renewable Transport Fuel Obligation and other similar national schemes. We support clean fuel standards to help deliver the biogas and RNG that our customers and the world want to play a part in delivering the energy transition.

We expect biogas to continue to deliver significant value today and into the future – even as new pathways develop, including methanol and ammonia for shipping, E-fuels, and hydrogen.