UGI Corporation (UGI) announced that its subsidiary, AmeriGas Propane (“AmeriGas”), the nation’s largest retail propane marketer, has entered into an agreement with Global Clean Energy Holdings, Inc. (GCEH) to purchase and distribute renewable LPG. AmeriGas will leverage its supply and logistics infrastructure and sales and marketing teams to market and distribute renewable LPG to new and existing customers primarily in the state of California.
As part of a multi-year agreement, GCEH’s Bakersfield biorefinery will process up to 15,000 barrels of renewable feedstock per day, including their proprietary energy crop - camelina, to produce renewable fuels including bioLPG. This biorefinery, which is expected to begin operations in the first half of calendar 2022, is projected to produce approximately 13 million gallons of renewable LPG in its first year, making it the largest commercially available renewable propane production facility to date in the United States1. Under the distribution partnership, AmeriGas will be the long-term exclusive buyer of renewable LPG from GCEH’s Bakersfield biorefinery.
“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 and CEO - UGI Corporation. “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, is chemically identical to today’s fossil LPG (C3H8) and therefore can be used with existing infrastructure. It has up to 80% lower carbon footprint than that of conventional LPG and a much lower carbon intensity than conventional diesel or gasoline fuels.
“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 Global Clean Energy Holdings. Russell Blades, Vice President, Technology & Sustainability at Global Clean Energy Holdings, added, “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.”
“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 Corporation. “We look forward to working closely with the team at GCEH to advance renewable LPG to market in California.”