An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
UGI and Global Clean Energy Announce Partnership to Distribute Renewable LPG
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
partnership
Rhea-AI Summary
UGI Corporation (NYSE: UGI) announced that its subsidiary, AmeriGas, has signed a multi-year agreement with Global Clean Energy Holdings (OTCQX: GCEH) to purchase and distribute renewable LPG. This partnership will utilize GCEH’s Bakersfield biorefinery, which aims to produce approximately 13 million gallons of renewable LPG annually, making it the largest of its kind in the U.S. AmeriGas will exclusively buy renewable LPG from GCEH, tapping into the growing demand for sustainable fuel solutions in California.
Positive
Long-term agreement with GCEH for renewable LPG distribution.
AmeriGas to leverage existing infrastructure for renewable fuel sales.
Expected production of 13 million gallons of renewable LPG annually at the Bakersfield biorefinery.
Negative
None.
VALLEY FORGE, Pa.--(BUSINESS WIRE)--
UGI Corporation (NYSE: UGI) announced today that its subsidiary, AmeriGas Propane (“AmeriGas”), the nation’s largest retail propane marketer, has entered into an agreement with Global Clean Energy Holdings, Inc. (OTCQX: GCEH) to purchase and distribute renewable LPG. AmeriGas will leverage its supply and logistics infrastructure and sales and marketing teams to market and distribute renewable LPG to new and existing customers primarily in the state of California.
As part of a multi-year agreement, GCEH’s Bakersfield biorefinery will process up to 15,000 barrels of renewable feedstock per day, including their proprietary energy crop - camelina, to produce renewable fuels including bioLPG. This biorefinery, which is expected to begin operations in the first half of calendar 2022, is projected to produce approximately 13 million gallons of renewable LPG in its first year, making it the largest commercially available renewable propane production facility to date in the United States1. Under the distribution partnership, AmeriGas will be the long-term exclusive buyer of renewable LPG from GCEH’s Bakersfield biorefinery.
“We are thrilled to partner with GCEH 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,” said Roger Perreault, President and CEO - UGI Corporation. “This long-term agreement demonstrates continued progress on our environmental, social and governance (ESG) initiatives and strategy to invest in renewables. It is another great example of our ongoing efforts to provide innovative, low-carbon, sustainable energy solutions to customers.”
Renewable LPG, also known as renewable-propane or bioLPG, is chemically identical to today’s fossil LPG (C3H8) and therefore can be used with existing infrastructure. It has up to 80% lower carbon footprint than that of conventional LPG and a much lower carbon intensity than conventional diesel or gasoline fuels.
“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,” commented Richard Palmer, President & CEO of Global Clean Energy Holdings. Russell Blades, Vice President, Technology & Sustainability at Global Clean Energy Holdings, added, “Agreements like this and strategic partners like AmeriGas support our integrated Farm-to-Fuels-to-Market value chain strategy, which truly differentiates us from other renewable fuel producers and sets an exciting stage for future growth.”
“This strategic partnership leverages the strengths of each organization and sets the foundation for both companies to work together across traditional agricultural, energy and supply chain lines to bring lower-carbon fuels to customers,” said Steve Kossuth, VP of Global LPG Supply - UGI Corporation. “We look forward to working closely with the team at GCEH to advance renewable LPG to market in California.”
About AmeriGas AmeriGas is the largest retail propane marketer in the United States, with more than 1 billion gallons sold annually to 1.4 million customers in all 50 states from approximately 1,600 locations.
About UGI Corporation UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania and West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the eastern region of the United States and California, and internationally in France, Belgium, the Netherlands and the UK.
Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.
About Global Clean Energy Holdings
Global Clean Energy Holdings, Inc. (“GCEH”) is a vertically integrated renewable fuels company specializing in nonfood-based feedstocks used for the production of advanced biofuels and biomaterials. With a footprint that stretches from the laboratory to the farm gate through to biorefinery production, GCEH’s farm-to-fuels value chain integration provides unrivaled access to reliable, ultra-low carbon feedstocks. When online, the Bakersfield Biorefinery will be the only facility of its type, processing both traditional bio feedstocks as well as domestically grown camelina oil into sustainable, ultra-low carbon fuels in California. To learn more, visit gceholdings.com and susoils.com.
Certain matters discussed in this press release are “forward-looking statements” of Global Clean Energy Holdings, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements are forward-looking statements and are subject to a number of risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections titled “Risk Factors” in filings with the Securities and Exchange Commission, including most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
1 According to a recent article by the Western Propane Gas Association (WPGA) News.
What is the new agreement between UGI and Global Clean Energy Holdings about?
UGI's subsidiary, AmeriGas, has entered into a long-term agreement to purchase and distribute renewable LPG from Global Clean Energy Holdings.
How much renewable LPG is expected to be produced by the Bakersfield biorefinery?
The Bakersfield biorefinery is projected to produce approximately 13 million gallons of renewable LPG in its first year.
Where will UGI distribute the renewable LPG from the new agreement?
UGI will primarily market and distribute renewable LPG to customers in California.
What are the environmental benefits of renewable LPG compared to conventional LPG?
Renewable LPG has up to 80% lower carbon emissions than conventional LPG and has a much lower carbon intensity than diesel or gasoline.
What does the partnership signify for UGI's business strategy?
The partnership reflects UGI's commitment to environmental, social, and governance (ESG) initiatives and its strategy to invest in renewable energy solutions.
