Applied LNG announced Wednesday an agreement to purchase biomethane from BP Energy Co. for use in the transportation fuel market.
The Westlake Village alternative energy company will use the biomethane produced by waste landfill sites to make liquefied natural gas at its facility in Topock, Ariz. The natural gas is then used to power vehicles owned by such customers as the Orange County Transportation Authority, waste hauler Waste Management Inc. and rental truck provider Ryder System Inc.
Applied LNG Chief Executive Cem Hacioglu said the purchases from BP, a London multinational with U.S. headquarters in Houston, show a commitment to finding renewable resources for its liquefied natural gas capabilities.
“Using biogas as the feedstock makes (liquefied natural gas) an even more compelling choice as one of America's sustainable energy sources,” Hacioglu said in a prepared statement.
Applied LNG operates a fleet of 49 delivery trucks, the second largest in the industry, after Clean Energy Fuels, a wholesaler and retailer in natural gas in Newport Beach is owned by oil-and-gas tycoon T. Boone Pickens.
The company currently serves the Southern California market from two liquefiers in Topock, on the California border. It is building additional liquefiers in Midlothian, Texas, just south of Dallas-Fort Worth, with the first expected to be completed by the middle of the year.