BP Expands RNG Footprint with Stakes in UK’s Gasrec, Top Biomethane Supplier

BP plc is expanding its biomethane opportunities in the UK after taking a 28.6% stake in Gasrec, which builds and operates renewable gas-fueled liquefied natural gas (LNG) and compressed natural gas (CNG) stations for road transport.

The integrated major agreed to supply Gasrec with renewable biomethane produced mainly from organic wastes, such as food and dairy manure. The investment would expand BP’s UK footprint in renewable natural gas (RNG) production and distribution.  Gasrec also would give BP inroads into renewable solutions for the heavy goods vehicle (HGV) market.

[Want to know how global LNG demand impacts North American fundamentals? To find out, subscribe to LNG Insight.] “Bio-LNG and bio-CNG play a crucial role in the energy transition and decarbonization of the heavy-freight industry and is another example of how we’re helping decarbonize hard-to-abate sectors,” said BP’s Carol Howle, executive vice president of Trading and Shipping.  “We’re excited to work with an industry leader like Gasrec to increase the supply of biomethane for HGV customers.

This investment further expands BP’s global renewable gas portfolio, an area which we believe will have an increasingly important role on the path to net zero.” BP has set a goal to achieve net-zero carbon emissions by at least 2050, and it has numerous low- and zero-carbon ventures across the globe.

Expanding Reach To Logistics Parks

Gasrec, founded in 2003, was the UK’s first biomethane supplier for the road transport sector. The network of 10 biomethane refueling stations across the UK together are capable of refueling around 1,250 vehicles per day, according to BP.

Included in the network is one of Europe’s largest gas refueling stations at Daventry International Rail Freight Terminal. “This agreement is an important milestone for our company as we look to continue increasing our impact on the UK’s heavy goods vehicle industry,” Gasrec CEO Rob Wood said. Before joining Gasrec, Wood over a 24-year career held a variety of commercial roles in BP’s downstream, chemical and upstream gas businesses. “Building on our 18 years’ experience and leading position in the HGV gas supply industry, we are excited to be working with BP to help expand our reach.”

Gasrec estimates that it refuels around 40% of the UK’s gas-powered HGVs. It now is working to extend its network at logistics parks. “In the UK, road transport is reported as being responsible for 27% of total greenhouse gas emissions in 2019,” BP noted. “HGVs represent just 5% of vehicle miles traveled, yet their associated emissions are disproportionately greater, producing around 16% of road transport emissions,” according to a report by the UK’s Department for Transport.

BP, the largest natural gas marketer in North America, according to NGI’s quarterly survey, has an extensive RNG portfolio in the Lower 48.  In November an RNG venture with Clean Energy Fuels Corp. was extended to finance and develop projects on dairy farms in Iowa and South Dakota. BP plans to transport the gas to California markets and monetize the environmental credits associated with dispensing the RNG.

In August BP clinched a 15-year agreement to purchase a unique blend of RNG from Maryland-based CleanBay Renewables, initially for California customers. The RNG is produced from poultry litter, a mixture of manure, feathers and bedding, to fuel vehicles. BP in August also secured RNG resources in a separate deal with a Gevo Inc.

Iowa facility.