AmeriGas Propane, a retail propane marketer, recently entered into a multi-year agreement with Global Clean Energy Holdings, a vertically integrated renewable fuels company specializing in nonfood-based feedstocks, to purchase and distribute renewable liquefied petroleum gas (LPG).
Under the agreement, AmeriGas will use its supply and logistics infrastructure as well as its sales and marketing teams to distribute and market renewable LPG to new and existing customers, primarily in California.
Global’s Bakersfield biorefinery will process up to 15,000 barrels of renewable feedstock daily to produce renewable fuels, and AmeriGas will be the long-term exclusive buyer.
The biorefinery is expected to begin operating in the first half of this year and is forecasted to produce approximately 13 million gallons of renewable LPG in its first year. This would make it the largest commercially available renewable propane production facility in the United States.
“Our investment in the Bakersfield biorefinery coupled with AmeriGas’ industry-leading footprint across the propane supply chain is a powerful combination aimed at advancing the growth of the renewable fuels market in California and elsewhere,” Richard Palmer, Global Clean Energy Holdings president and CEO, said.
AmeriGas, a subsidiary of UGI Corp., sells more than 1 billion gallons of propane annually to 1.4 million customers.