BP invests in developing biogas projects and offtakes from carbon capture projects. BP is also actively involved in renewable power and fuel certificates markets to help businesses demonstrate the use of renewable energy. BP’s AA credit rating and risk management products can help developers who are seeking project financing.
Renewable Identification Numbers (RINs)
RINs are the currency of the Renewable Fuel Standard (RFS) regulated by the EPA which mandates that obligated parties must blend a certain percentage of US fuels from renewable sources into petroleum gasoline and diesel. Compliance is achieved by blending renewable fuels into transportation fuel, generating credits (called “Renewable Identification Numbers”, or RINs) to meet an EPA-specified Renewable Volume Obligation (RVO).
Low Carbon Fuel Standard (LCFS)
As part of our extensive portfolio, BP also offers renewable natural gas developers access to California Vehicle Fuel Providers. This access creates Low Carbon Fuel Standard (LCFS) credits which are sold to meet compliance obligations and reach voluntary GHG reduction targets. Suppliers who join the scheme may generate LCFS credits (representing a 1 tonne reduction in GHG emissions from the life cycle of fuel production). To encourage firms to innovate lower carbon technology, an auction reserve price is in place, which will increase annually in line with inflation.
Clean Energy biogas supply
In 2017, BP acquired the upstream portion of Clean Energy’s biogas business and signed a long-term supply contract with Clean Energy to support Clean’s continuing downstream biogas business. The deal enables both companies to accelerate the growth in biogas supply and help meet the growing demand of the natural gas vehicle fuel sector. Under terms of the agreement, BP purchased Clean Energy’s existing biomethane production facilities, its share of two new facilities and its existing third party supply contracts for renewable natural gas. Clean Energy continues to have access to a secure and expanding supply to sell to the growing customer base of its renewable natural gas fuel through a long-term supply contract with BP. Clean Energy will also be able to expand its customer base at its North American network of natural gas fuelling stations, allowing customers to take advantage of the ease and affordability of switching to a fuel that is both renewable and can significantly reduce greenhouse gas emissions. The biogas used is produced entirely from organic waste. As a fuel for compressed natural gas vehicle fleets, including heavy-duty trucks, it is estimated to result in 70 percent lower GHG emissions than equivalent gasoline or diesel fuelled vehicles. The business generates carbon credits known as RINs as well as LCFS Credits in California. BP’s acquisition enables both BP and Clean Energy to accelerate growth in renewable natural gas supply and meet the growing demand of the natural gas vehicle sector. BP’s access to Clean’s fueling network will allow key developers to capture both RIN and LCFS income. BP’s offtake capability and strong balance sheet will help developers access project financing. Clean Energy will focus on expanding their network and working with fleet owners on converting their vehicles to environmentally friendly CNG or LNG fuel usage. BP is now one of the largest suppliers of renewable natural gas to the US & Canadian transportation sector, providing access through Clean Energy’s more than 500 CNG/LNG fuelling stations.
Aria Energy Joint Ventures
In December 2017, BP formed a joint venture with Aria Energy for the biogas production facilities acquired as part of the Clean Energy acquisition. Under the joint venture, Aria has responsibility for operations, maintenance and administration of the biomethane production facilities in Canton, Michigan, and North Shelby, Tennessee, and will continue development, engineering and construction of new facilities in Oklahoma City, Oklahoma, and Atlanta, Georgia. BP will provide marketing and distribution services for the facilities.
Green gas - RGGOs
The use of biomethane instead of fossil gas can significantly reduce emissions as it is produced from renewable material, and even provides a sustainable recycling solution for waste. The Green Gas Certification Scheme (GGCS) tracks the volume of biomethane injected into the grid, rather than the physical flows. This biomethane displaces fossil-fuel based natural gas in the grid system. The volume is tracked by Renewable Gas Guarantees of Origin (RGGO), which can be traded as certificates. BP can provide consumers of gas with certificates that can be used to evidence their use of biomethane through the gas grid for the purposes of GHG emissions reporting.
Renewable Power Certificates
Renewable Energy Certificate (RECs) are generated from power produced by renewable electricity generation and may be purchased for compliance purposes by entities that need to source a certain percentage of energy from renewable generation in order to comply with certain US state requirements. RECs may also be used to meet a company’s renewable energy goals or for meeting voluntary corporate goals relating to clean energy.