UGI, Vertimass partner to produce renewable fuels

UGI Corp., AmeriGas’ parent company, entered into a 15-year agreement with Vertimass to utilize its catalytic technology to produce renewable fuels from renewable ethanol in the U.S. and Europe.

The partnership centers on the development of production facilities using California-based technology developer Vertimass’ catalytic technology to convert renewable ethanol into renewable propane and sustainable aviation fuel (SAF). Up to 50 percent of the total production capacity from the facilities can be renewable propane that will support UGI’s ongoing efforts to provide low-carbon energy solutions.

“Our business development team continues to seek out innovative opportunities, and I am delighted with our newly established partnership with Vertimass,” says Roger Perreault, president and CEO of UGI, in a news release. “We believe this partnership will deliver significant renewable LPG for our customers as well as bring investment opportunity to interested stakeholders.”

UGI expects to invest either solely, jointly with Vertimass or in partnership with third parties to build and operate multiple production facilities over the next 15 years in locations across the U.S. and Europe, increasing the supply of renewable propane and SAF.

UGI anticipates a total investment of roughly $500 million for the bolt-on production facilities over a 15-year period and a total production target from these aggregated facilities of approximately 1 billion gallons of combined renewable fuels per year. The goal is to have the first production facility onstream in fiscal year 2024, with an annual production target of approximately 50 million gallons of combined renewable fuels.

Featured homepage image: tttuna/E+/Getty Images