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AmeriGas to distribute renewable LPG with new partnership

February 16, 2022 By    

AmeriGas Propane, a subsidiary of UGI Corp., entered an agreement with Global Clean Energy Holdings to purchase and distribute renewable LPG.

As part of a multiyear agreement, Global Clean Energy’s biorefinery in Bakersfield, California, will process up to 15,000 barrels of renewable feedstock per day, including its proprietary energy crop camelina, to produce renewable fuels including bioLPG.

“Our investment in the Bakersfield biorefinery, coupled with AmeriGas’ footprint across the propane supply chain, is a powerful combination aimed at advancing the growth of the renewable fuels market in California and elsewhere,” says Richard Palmer, president and CEO of Global Clean Energy Holdings.

The biorefinery is expected to begin operations before mid-2022 and is projected to produce about 13 million gallons of renewable LPG in its first year.

Under the distribution partnership, AmeriGas will be the long-term exclusive buyer of renewable LPG from the biorefinery. AmeriGas will leverage its supply and logistics infrastructure and sales and marketing teams to market and distribute renewable LPG to customers, primarily in California.

“We are thrilled to partner with Global Clean Energy Holdings 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,” Roger Perreault, president and CEO of UGI, says in a news release.

Featured homepage photo: Ed Richesson

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About the Author:

Danielle Pesta is a digital editor for North Coast Media, the parent company of LP Gas. She can be reached at dpesta@northcoastmedia.net.

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