Written on: February 28, 2022 by ICM
UGI Corp., Valley Forge, PA, announced its subsidiary, AmeriGas Propane, has entered into an agreement with Global Clean Energy Holdings, Inc. (GCEH) to purchase and distribute renewable liquefied petroleum gas (LPG) primarily in California. Financial terms of the deal were not disclosed.
Under the distribution partnership, AmeriGas will be the long-term exclusive buyer of renewable LPG from GCEH’s Bakersfield, CA biorefinery. This biorefinery, which is expected to begin operations in the first half of 2022, will process up to 15,000 barrels of renewable feedstock per day, including proprietary energy crop—camelina—to produce renewable fuels including bioLPG. The biorefinery is projected to produce approximately 13 million gallons of renewable LPG in its first year.
“We are thrilled to partner with GCEH to bring renewable LPG to customers in a rapidly developing market where there is strong demand for biofuels and a focus on environmentally-sustainable energy solutions,” said Roger Perreault, President & CEO of UGI Corp. “This long-term agreement demonstrates continued progress on our environmental, social and governance (ESG) initiatives and strategy to invest in renewables. It is another great example of our ongoing efforts to provide innovative, low-carbon, sustainable energy solutions to customers.”
Renewable LPG, also known as renewable-propane or bioLPG, can directly replace fossil fuel-based LPG (C3H8) and has up to 80% lower carbon footprint.
“Our investment in the Bakersfield biorefinery coupled with AmeriGas’ industry-leading footprint across the propane supply chain is a powerful combination aimed at advancing the growth of the renewable fuels market in California and elsewhere,” commented Richard Palmer, President & CEO of GCEH.
“Agreements like this and strategic partners like AmeriGas support our integrated Farm-to-Fuels-to-Market value chain strategy, which truly differentiates us from other renewable fuel producers and sets an exciting stage for future growth,” added Russell Blades, VP, Technology & Sustainability at GCEH.
“This strategic partnership leverages the strengths of each organization and sets the foundation for both companies to work together across traditional agricultural, energy and supply chain lines to bring lower-carbon fuels to customers,” said Steve Kossuth, VP of Global LPG Supply, UGI Corp. “We look forward to working closely with the team at GCEH to advance renewable LPG to market in California.”