Gevo, Inc. announced that its wholly-owned dairy manure-based renewable natural gas (RNG) project company located in northwest Iowa, Gevo NW Iowa RNG, LLC, has signed binding, definitive agreements with BP Canada Energy Marketing Corp. and BP Products North America Inc. for the sale of NW Iowa RNG’s production.

The NW Iowa RNG project is currently being constructed and is expected to commence production in early 2022. Upon project completion, NW Iowa RNG is estimated to produce approximately 355,000 MMBtu of RNG per year. The RNG is expected to be sold into the California market under dispensing agreements bp has in place with Clean Energy Fuels Corp., the largest fueling infrastructure in the U.S. for RNG.

RNG-fueled vehicles are estimated to result in up to 95 percent lower emissions than those fueled by gasoline or diesel on a lifecycle basis, according to a US Department of Energy study.

It is anticipated that NW Iowa RNG will benefit from environmental product revenues under California’s Low Carbon Fuel Standard program and the U.S. Environmental Protection Agency’s Renewable Identification Number program.

“RNG is proving to be a key fuel in the energy transition. bp has a value chain that allows RNG to reach the transportation market, and it’s a pleasure to work with a company that shares our vision of a low-carbon future,” said Dr. Patrick R. Gruber, Chief Executive Officer of Gevo. “This is an excellent opportunity to meet the growing demand for RNG and to expand our RNG business. We are glad to be working with bp.”