LONDON, March 1 BP agreed on Wednesday to
buy Clean Energy Fuels Corp's biomethane business for
$155 million, expanding its huge gas supply portfolio in the
United States and showing its shift to less carbon-intensive
BP will take over Clean Energy's existing and two new
biomethane production sites as well as supply contracts to third
parties, the companies said. As part of the deal, the U.S.
company has also signed a long-term biomethane supply contract
Clean Energy captures biomethane gas emitted from landfill
waste sites and then processes and purifies it to pump through
pipelines. It is mainly used as a fuel for transport.
"Demand for renewable natural gas is growing quickly and BP
is pleased to expand our supply capability in this area," Alan
Haywood, chief executive officer of BP's supply and trading
Clean Energy sold 60 million gasoline gallon equivalents of
the biomethane fuel last year to customers including logistics
firm UPS and the City of Santa Monica's transit agency, it said.
BP said in a strategy update on Tuesday that it was
exploring new investments in low-carbon forms of energy, a part
of the industry in which it sees significant future business
(Reporting by Karolin Schaps. Editing by Jane Merriman)