UGI & Global Clean Energy Announce Partnership to Distribute Renewable LPG

Valley Forge, Pennsylvania (Feb. 15, 2022) — UGI Corporation announced that its subsidiary, AmeriGas Propane, the nation’s largest retail propane marketer, has entered into an agreement with Global Clean Energy Holdings Inc. 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 year 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 States. 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 of 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 at 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. More information about AmeriGas is available at amerigas.com.

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 U.K. Comprehensive information about UGI Corporation is available at ugicorp.com.

About Global Clean Energy Holdings
Global Clean Energy Holdings Inc. 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.