Valley Forge-based UGI Corporation announced Wednesday that it has entered into an agreement with Vertimass to produce renewable fuels in the U.S. and Europe.
The 15-year agreement will allow UGI to utilize Vertimass’ technology to produce renewable fuels from renewable ethanol, the companies said. The agreement centers around the development of production facilities using Vertimass’ catalytic technology that converts the renewable ethanol into renewable-propane and sustainable aviation fuel (SAF), which enables flexible production of the fuels to align with regional market demand. Up to 50 percent of the total production capacity from the facilities will support UGI’s ongoing efforts to provide low-carbon, sustainable energy solutions.
“This is another significant milestone in our commitment to providing renewable fuels to our customers,” said Roger Perreault, President and Chief Executive Officer of UGI Corporation. “Our business development team continues to seek out innovative opportunities, and I am delighted with our newly established partnership with Vertimass. We believe this partnership will deliver significant renewable LPG for our customers as well as bring investment opportunity to interested stakeholders.”
UGI said it anticipates investing either solely, jointly with Vertimass, or in partnership with other third parties to build and operate multiple production facilities over the course of the agreement. The facilities will be located across the United States and Europe and would significantly increase the supply of renewable-propane and SAF. The investment will equal a total of roughly $500 million, the company said, for bolt-on production facilities over 15 years, including potential third-party investment. Total production from the facilities is expected to be approximately 1 billion gallons of combined renewable fuels per year. The companies said the goal was to have the first production facility onstream in 2024, producing 50 million gallons of combined renewable fuels.
“Vertimass is extremely excited to work with UGI to commercialize our breakthrough technology,” Vertimass President and Chief Executive Officer Charles Wyman said. “UGI and Vertimass have built strong relationships over the last year, which we believe will cement success.”